SAN FRANCISCO, CA, September 10, 2007 – Demeter Group, a boutique investment bank specializing in consumer companies, has advised National Pretzel Holdings, Inc., the nation’s largest producer of private label pretzels, on the acquisition of Shultz Foods, a leading private label pretzel manufacturer.

Shultz Foods joins National Pretzel Holdings’ family of leading regional pretzel businesses, which includes California Pretzel Co., the largest co-pack and contract manufacturing pretzel supplier on the west coast, and Anderson Bakery Co., the nation’s oldest bakery. This acquisition expands National Pretzel Holdings’ national production and distribution capabilities in addition to enhancing its product innovation expertise.

"Demeter Group’s expertise has been invaluable during this acquisition," said Michael Uytengsu, CEO of National Pretzel Holdings. "Their counsel was a key contributor during the decision-making process of this acquisition, assisting us with both analyzing our company’s strategic growth initiatives as well as understanding the implications of integrating Shultz Foods into our existing business."

"This acquisition showcases Demeter Group’s ability to leverage our considerable experience and expertise within the food industry to provide clients with exceptional advice tailored to their needs," said Jeff Menashe, CEO of Demeter Group. "Particularly, our focused approach and superior transaction-management skills help our clients better understand the strategic and financial integration of a new business."

The retail pretzel category in the U.S. is an estimated $1.2 billion market. The private label category represents 10 percent of this market, which is two to three times larger than private label penetration in comparable salty snack categories.

California Pretzel Co., founded in 1959, is the largest co-pack and contract manufacturing pretzel supplier on the west coast and serves customers both domestically and abroad. Its sister company, Anderson Bakery, founded in 1888, is located in Pennsylvania, and augments National Pretzel Holdings offerings to economically service customer’s needs.