©Cholula Hot Sauce
McCormick & Company has agreed to acquire the parent company of the Cholula Hot Sauce brand from L Catterton for $800 million.
L Catterton acquired Cholula in April 2019, since which time the private equity firm claims Cholula has grown household penetration by over 50% and gained ‘meaningful’ market share.
With annual net sales of approximately $96 million, Cholula offers a portfolio of six hot sauce flavours.
McCormick plans to retain the brand name in both the retail and foodservice channels. Cholula’s products offer a traditional Mexican hot sauce taste profile and McCormick says that they will complement and build on its existing hot sauce portfolio.
The company plans to accelerate Cholula’s growth by increasing brand awareness and expanding the distribution of its products.
“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,” said Lawrence E. Kurzius, chairman, president and CEO of McCormick.
“…Cholula, a brand known for authentic bold and spicy Mexican flavours, 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.”
Kurzius continued: “We plan to grow Cholula by optimising category management and brand marketing, while also expanding channel penetration, making McCormick the perfect home for the Cholula brand.”
Maura Mottolese, CEO of Cholula, added: “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, unique insight into the hot sauce category and unmatched global flavour leadership, we look forward to capitalising on new opportunities and reaching even greater heights together.”
The transaction – which is subject to customary closing conditions – is expected to be completed by the end of the year.
© FoodBev Media Ltd 2020