Please ensure Javascript is enabled for purposes of website accessibility
With America Getting Spicy, Cholula Hot Sauce Snapped up for $800M
gvw_ap_news
By Associated Press
Published 4 years ago on
November 24, 2020

Share

With millions dining at home for safety and a swing to the spicier side in the U.S. in recent years Cholula, the hot sauce with the distinctive wooden cap and a cult following, has become a very valuable brand.

McCormick & Co., the spice maker that dominates U.S. grocery shelves, said Tuesday that it was buying Cholula for $800 million from L Catteron, a private equity firm.

McCormick made a notable tilt toward the hot sauce shelf three years ago when it acquired Frank’s RedHot, the preferred fuel in Buffalo wing recipes, as part of its $4.2 billion acquisition of Reckitt Benckiser’s food business.

“The sauce with the little wooden cap is, like Frank’s RedHot, well-known to ‘chilli-heads’ around the globe but its appeal is much wider,” said Dean Best, food editor of Global Data.

The acquisition arrives with the pandemic warping how America and the rest of the world eats, meaning largely at home. There was evidence of that trend in recent regulatory filings from McCormick, a company in Hunt Valley, Maryland with a valuation of close to $25 billion.

McCormick said in September that revenue surged 8% during the third quarter as people replaced the contents of outdated spice racks, or started one for the first time.

And hot sauce is increasingly part of the pantry mix.

“Hot sauce is an attractive, high-growth category and, as an iconic premium brand, Cholula is outpacing category growth,” said McCormick Chairman and CEO Lawrence Kurzius in prepared remarks Tuesday.

Cholula has made its own adaptations during the pandemic to get the sauce to its cult followers.

Earlier this month the company teamed up with simplehuman to create a touch-free Cholula dispenser for restaurants or other places that serve the hot sauce, allowing those eating out to bring the heat in relative safety.

Shares of McCormick, which have hit an all time high this year, rose almost 2% Tuesday.

RELATED TOPICS:

DON'T MISS

Musk Deletes Post About Harris and Biden Assassination After Widespread Criticism

DON'T MISS

Armenian National Sentenced for Assaulting Immigration Officer in Kern County

DON'T MISS

Sac State Wants to Elevate Football Program, Eyes Pac-12 or Mountain West

DON'T MISS

Fresno Woman Struck and Killed in Blackstone Collision Identified

DON'T MISS

Will Air Force Move to New Pac-12, Bolt to AAC, or Stay Put?

DON'T MISS

Brandau and Bredefeld Talk Issues While Launching Attacks at Rotary Forum

DON'T MISS

Ohio State Police to Protect Schools After Furor Over Haitian Immigrants in Springfield

DON'T MISS

Suspect in Apparent Assassination Attempt on Trump Was Near Golf Course for 12 Hours, Records Show

DON'T MISS

Stock Market Today: Dow Sets a Record as Wall Street Gears Up for a Cut to Interest Rates

DON'T MISS

SEC, Big Ten Grab 16 Spots in AP Top 25, Monopolizing Rankings Like Never Before

UP NEXT

Fresno Woman Struck and Killed in Blackstone Collision Identified

UP NEXT

Former Prominent BBC News Anchor Gets Suspended Sentence for Indecent Images of Children on Phone

UP NEXT

Columnists Resign From the Jewish Chronicle Over Allegations Gaza Articles Were Fabricated

UP NEXT

5 Things to Know About the Apparent Assassination Attempt on Trump at One of His Golf Courses

UP NEXT

Man Held After Apparent Trump Assassination Attempt Was Filmed by AP in Kyiv in 2022

UP NEXT

Fresno Authorities Seek Man Facing Felony Child Sex Crime Charges

UP NEXT

Fresno Suspected Gang Member Linked to Multiple Violent Crimes Arrested

UP NEXT

Mexican Cartel Leader ‘El Mayo’ Zambada Pleads Not Guilty to US Charges

UP NEXT

Investigators Say Teen Smuggled Assault Rifle Into Georgia School in Backpack Before Shooting

UP NEXT

Partial Eclipse of Harvest Supermoon to Light Up the Sky on Sept. 17

Fresno Woman Struck and Killed in Blackstone Collision Identified

3 hours ago

Will Air Force Move to New Pac-12, Bolt to AAC, or Stay Put?

4 hours ago

Brandau and Bredefeld Talk Issues While Launching Attacks at Rotary Forum

4 hours ago

Ohio State Police to Protect Schools After Furor Over Haitian Immigrants in Springfield

5 hours ago

Suspect in Apparent Assassination Attempt on Trump Was Near Golf Course for 12 Hours, Records Show

5 hours ago

Stock Market Today: Dow Sets a Record as Wall Street Gears Up for a Cut to Interest Rates

5 hours ago

SEC, Big Ten Grab 16 Spots in AP Top 25, Monopolizing Rankings Like Never Before

5 hours ago

Why Trump Won’t Say He Wants Ukraine to Win

6 hours ago

US Regains Solheim Cup as Lilia Vu Seals Victory with Birdie Against Europe

6 hours ago

A’ja Wilson Becomes 1st WNBA Player to Reach 1,000 Points in a Season

6 hours ago

Musk Deletes Post About Harris and Biden Assassination After Widespread Criticism

Elon Musk has deleted a post on his social media platform X in which he said “no one is even trying to assassinate” President Jo...

3 hours ago

3 hours ago

Musk Deletes Post About Harris and Biden Assassination After Widespread Criticism

Photo of a laptop with a Department of Justice logo on the screens
3 hours ago

Armenian National Sentenced for Assaulting Immigration Officer in Kern County

3 hours ago

Sac State Wants to Elevate Football Program, Eyes Pac-12 or Mountain West

3 hours ago

Fresno Woman Struck and Killed in Blackstone Collision Identified

4 hours ago

Will Air Force Move to New Pac-12, Bolt to AAC, or Stay Put?

4 hours ago

Brandau and Bredefeld Talk Issues While Launching Attacks at Rotary Forum

5 hours ago

Ohio State Police to Protect Schools After Furor Over Haitian Immigrants in Springfield

5 hours ago

Suspect in Apparent Assassination Attempt on Trump Was Near Golf Course for 12 Hours, Records Show

MENU

CONNECT WITH US

Search

Send this to a friend