The company already owns Frank’s Red Hot and Zatarain’s.
McCormick and Company has announced it will be adding another condiment to its flavor portfolio. The Hunt Valley-based spice company will acquire the Mexican hot sauce brand Cholula from a private equity firm for $800 million. The popular hot sauce is a staple at tables in homes and restaurants across North America and will help McCormick further expand its condiment footprint. McCormick sales increased eight percent last quarter as people continued to make more of their meals at home due to the pandemic.
"Hot sauce is an attractive, high-growth category and, as an iconic premium brand, Cholula is outpacing category growth," said Lawrence E. Kurzius, Chairman, President, and Chief Executive Officer of McCormick and Company. “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."
The sale is expected to close by the end of 2020.
McCormick added Franks’ Red Hot in 2017 with the acquisition of French’s and developed a new hot sauce within the Old Bay brand last year. Both Old Bay and Cholula are marketing hot sauce dispensers for the 2020 holiday season. The Cholula dispenser is hands-free and will be available for $130 beginning on December 1. Old Bay's hot sauce dispenser holds an impressive three gallons of sauce and will set you back $159.95.
Courtesy of Simplehuman
Created in Jalisco, Mexico, Cholula was introduced in Austin, Texas. In 1989. Made with spicy piquin and Arbol peppers, it quickly became popular across the U.S. Cholula has evolved to include six flavors, chipotle, chili garlic, chili lime, green pepper, sweet habanero, and original.