McCormick to acquire Mexican hot sauce brand Cholula Hot Sauce
McCormick acquisition of Cholula Hot Sauce : US spice manufacturer McCormick & Company has agreed to acquire Cholula, the parent firm of Mexican hot sauce brand Cholula Hot Sauce from L Catterton, for $800 million in cash.
According to McCormick, the products of Cholula Hot Sauce are highly complementary to its existing hot sauce portfolio and will enlarge the flavor offerings to consumers and foodservice operators.
Commenting on McCormick acquisition of Cholula Hot Sauce, Lawrence E. Kurzius -Chairman, President and CEO of McCormick, said: “The acquisition of Cholula accelerates McCormick’s growth opportunities within our condiment platform and broadens our portfolio in the hot sauce category with the addition of the Cholula brand.
“Hot sauce is an attractive, high-growth category and, as an iconic premium brand, Cholula is outpacing category growth.
“As McCormick continues to capitalize on the growing consumer interest in healthy and flavorful eating, Cholula, a brand known for authentic bold and spicy Mexican flavors, is a strong complement to our portfolio providing consumers and foodservice operators with an even more diverse product offering that we expect will strengthen our growth opportunities.”
L Catterton acquired the Mexican hot sauce brand in 2019 for an undisclosed price.
The annual net sales of Cholula Hot Sauce are nearly $96 million. Its portfolio consists of six distinctive flavors that are made in Mexico by using a mix of fresh peppers and regional spices.
McCormick said that it intends to retain the Cholula brand name in retail and also foodservice channels.
Cholula CEO comments on McCormick acquisition of Cholula Hot Sauce
Maura Mottolese – CEO of Cholula, commenting on McCormick acquisition of Cholula Hot Sauce, said: “In the last 19 months, with the support, resources, and operational expertise of the L Catterton team, we established Cholula as a high-performing standalone business, vastly improved our commercial execution efforts, and pivoted our foodservice strategy to position Cholula for long-term growth and success.
“With McCormick’s extensive experience and unique insight into the hot sauce category and unmatched global flavor leadership, we look forward to capitalizing on new opportunities and reaching even greater heights together.”
McCormick acquisition of Cholula Hot Sauce is expected to be wrapped up by the year end.