HANOVER, PA. — Utz Brands said ingredients represented the largest portion of its procurement in 2023, accounting for 30% of its total spend, according to the company’s 2023 environmental, social and governance report. Approximately 99% of agricultural suppliers are located in the United States, but a small volume of ingredients and packaging materials such as oil and film are sourced from regions outside the United States.

The report also discussed Utz’s Supplier Code of Conduct, which was updated at the end of 2022 and integrated into onboarding and renewals of all raw materials and packaging suppliers in 2023.

“Compliance with the Code is subject to verification through a range of mechanisms, including self-assessments, worker well-being surveys, and both announced and unannounced on-site third-party audits,” Utz said. “Prior to conducting a food safety and quality audit of a supplier, we use a qualification process based on supplier documentation. In 2023, we visited three suppliers and conducted reviews of major quality and food safety programs.  We anticipate conducting 10 to 15 audits in 2024. Suppliers are subject to rigorous pre-selection screenings for safety and quality.”

Utz also introduced new questions to its vendor selection in 2023 as part of its responsible sourcing initiative. Some of these questions relate to environmental policies and practices to conserve energy, water and raw materials; tracking and disposing of waste generation; and documentation of any sustainability-related initiatives or collaborations with suppliers.

“Our responsible sourcing initiative is based on partnering with suppliers who share our ESG values,” Utz said. “We believe that ecologically balanced soils and diverse ecosystems are vital for long-term agricultural productivity and environmental resilience.”

On the topic of agriculture, Utz said it met with nine potato growers in 2023, which is more than 25% of the 35 growers in the company’s supply chain.

“Our onsite visits opened a dialogue with them to solidify our relationships and learn about their operations,” Utz said. “Energy saving techniques, such as monitoring fuel usage and implementing methods to save fuel, are part of our growers’ practices.”

Utz also said less than 10% of Utz products contain palm oil, which is sourced from a large supplier who certifies a portion of its oil through the Roundtable on Sustainable Palm Oil (RSPO).

“We support research initiatives aimed at improving the commodities we use in our products, with a significant focus on supporting farmers,” Utz said. “We give financial support and contributions to industry and educational outlets, including those conducting research to optimize soil health, improve crop yields, and support business education.”

Product safety is another major topic discussed in the report.

“Certifying our associates maintains Utz’s high food safety standards, prioritizes consumer health, and upholds regulatory compliance,” Utz said. “We’re proud to report that 100% of those required to undertake training, 1,192 associates, participated in 2023.”

Utz also provided an update on product transparency.

“In 2023, we offered products that were gluten-free, non-GMO, organic, kosher, and made with whole grains, marked by universal labeling to help customers make educated food choices,” Utz said. “In addition, we follow federal and state regulations for product safety and transparency. For instance, in accordance with newly adopted FDA requirements classifying sesame seeds as a major food allergen, we began labeling products containing sesame seeds in 2023.”