Let the Chips Fall Where They May

>> Friday, October 30, 2009

My mom had asked if her favorite UTZ potato chips are threatened by the company's recent acquisition by competitor Snyder's of Hanover.

I think the potato chip line will continue to exist, but the UTZ brand's days are limited. No matter what Snyders says about keeping the UTZ brand alive, I doubt it will be used much longer.

From a marketing perspective, once the value of the acquired brand is transferred to the parent brand, it's most efficient to eliminate any sub-brands that compete for mindshare. We'll see how this one works out.

Some companies maintain a gaggle of brands (like Procter & Gamble) and that is their thing. But my guess is that the Snyder's brand is small enough that they have no desire to maintain a large brand portfolio. This doesn't mean the chips will change. They just may be renamed something like "Mama UTZ's Classic Potato Chips, by Snyders." And in 5 years they will just be called "Snyder's Classic Potato Chips."

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