Spice and seasoning company McCormick is purchasing Cholula hot sauce from private-equity firm L Catterton, reported The Wall Street Journal. The US$800 million cash deal adds the Mexico-produced sauce to McCormick’s extensive portfolio, which includes its signature flavorings, French’s mustard, Old Bay, Thai Kitchen products, and Frank’s RedHot buffalo sauce.
The demand for hot sauce has soared in recent years, fueled in part by “growing immigrant populations, increasing familiarity with global cuisines and thrill-seeking food shows,” according to the Wall Street Journal, which first reported the acquisition news. Domestic hot-sauce retail sales this year will approach US$1 billion, not far off from ketchup numbers, per market research company Euromonitor.
McCormick, which has seen its sales grow thanks to the rise in home cooking during the pandemic, stated that Cholula’s annual sales are about US$96 million and are expected to grow in a “normalized” environment after COVID-19.
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