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McCormick said in September that revenue surged 8% during the third quarter as people replaced the contents of outdated spice racks, or started one for the first time.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

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

UP NEXT

Do Americans Support Trump’s Use of Marines in LA? The Numbers Might Shock You

Clovis Councilmember Basgall Says He Won’t Run for Re-Election

3 hours ago

An Unknowing Fresno County Gave Community Medical $2.7M While Hospital Engaged in Kickback Scheme

4 hours ago

Arizona Governor Vetoes Bill to Ban Teaching Antisemitism in Arizona’s Public Schools

PHOENIX — Arizona Gov. Katie Hobbs has vetoed a proposal that would ban teaching antisemitism at the state’s public K-12 schools, universiti...

1 hour ago

Arizona Democratic Gov. Katie Hobbs, center, applauds for those affected by the Los Angeles area wildfires as she gives the State of the State address in the House of Representatives at the state Capitol with Speaker of the House Rep. Steve Montenegro, R-Litchfield Park, left, and Senate President Warren Petersen, R-Gilbert, flanking the governor on Jan. 13, 2025, in Phoenix. (AP File)
1 hour ago

Arizona Governor Vetoes Bill to Ban Teaching Antisemitism in Arizona’s Public Schools

Rep. LaMonica McIver, D-N.J., demands the release of Newark Mayor Ras Baraka after his arrest while protesting outside an ICE detention prison, May 9, 2025, in Newark, N.J, (AP Photo/Angelina Katsanis, File)
1 hour ago

US Rep. LaMonica McIver Indicted on Federal Charges From Skirmish at New Jersey Immigration Center

President Donald Trump prepares to deliver remarks during a visit to Fort Bragg to mark the U.S. Army anniversary, in North Carolina, U.S., June 10, 2025. REUTERS/Evelyn Hockstein
3 hours ago

US Military Bases to Restore Names Changed After Racial Justice Protests, Trump Says

3 hours ago

Clovis Councilmember Basgall Says He Won’t Run for Re-Election

4 hours ago

An Unknowing Fresno County Gave Community Medical $2.7M While Hospital Engaged in Kickback Scheme

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 5, 2025. REUTERS/Brendan McDermid/ File Photo
6 hours ago

Wall Street Ends Higher as Investors Track Progress of US-China Trade Talks

A bridge crane damaged by Israeli air strikes is pictured in the Red Sea port of Hodeidah, Yemen July 31, 2024. REUTERS/Khaled Abdullah//File Photo
6 hours ago

Israel Strikes Hodeidah Port, Threatens Naval, Air Blockade

U.S. President Donald Trump boards Air Force One as he departs for North Carolina at Joint Base Andrews, Maryland, U.S., June 10, 2025. REUTERS/Evelyn Hockstein
7 hours ago

Trump Warns Protests at Army Parade Will Be Met With Force

Help continue the work that gets you the news that matters most.

Search

Send this to a friend