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McCormick said in September that revenue surged 8% during the third quarter as people replaced the contents of outdated spice racks, or started one for the first time.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

Community Hospital CEO Craig Castro Will Retire in Early 2025

DON'T MISS

Conor McGregor Must Pay Woman $250K in Sexual Assault Case, Civil Jury Rules

DON'T MISS

Judge Delays Trump Hush Money Sentencing in Order to Decide Where Case Should Go Now

DON'T MISS

Trump Gave Interior Nominee One Directive for a Half-Billion Acres of US Land: ‘Drill’

DON'T MISS

Fresno State Gets $500K Grant for Students Facing Homelessness

DON'T MISS

NATO and Ukraine to Hold Emergency Talks After Russia’s Attack With New Hypersonic Missile

DON'T MISS

Many in Gaza Are Eating Just Once a Day, as Hunger Spreads Amid Aid Issues

DON'T MISS

Norwegian Student Arrested on Charges of Spying on US for Russia

DON'T MISS

Eagles Seek to Extend Win Streak in Prime-Time Clash With Resurgent Rams

DON'T MISS

Nick Chubb Plows Through Heavy Snow as Browns Beat Steelers

UP NEXT

What Will Happen to CNBC and MSNBC When They No Longer Have a Corporate Connection to NBC News?

UP NEXT

Bomb Cyclone Kills 1 and Knocks Out Power to Over Half a Million Homes Across the Northwest US

UP NEXT

Volunteers Came Back to Nonprofits in 2023, After the Pandemic Tanked Participation

UP NEXT

New Study: Proposed Trump Tariffs Could Cost US Consumers $78 Billion a Year

UP NEXT

Riders Stuck in Midair for Over 2 Hours on Knott’s Berry Farm Ride

UP NEXT

Shouting Racial Slurs, Neo-Nazi Marchers Shock Ohio’s Capital

UP NEXT

More Logging Is Proposed to Help Curb Wildfires in the US Pacific Northwest

UP NEXT

Scientists Fear What’s Next for Public Health if RFK Jr. Is Allowed To ‘Go Wild’

UP NEXT

Warren Slams Biden Admin for Failing to Hold Israel Accountable on Gaza Aid

UP NEXT

Suicides in the US Military Increased in 2023, Continuing a Long-Term Trend

Trump Gave Interior Nominee One Directive for a Half-Billion Acres of US Land: ‘Drill’

29 minutes ago

Fresno State Gets $500K Grant for Students Facing Homelessness

32 minutes ago

NATO and Ukraine to Hold Emergency Talks After Russia’s Attack With New Hypersonic Missile

35 minutes ago

Many in Gaza Are Eating Just Once a Day, as Hunger Spreads Amid Aid Issues

40 minutes ago

Norwegian Student Arrested on Charges of Spying on US for Russia

49 minutes ago

Eagles Seek to Extend Win Streak in Prime-Time Clash With Resurgent Rams

51 minutes ago

Nick Chubb Plows Through Heavy Snow as Browns Beat Steelers

53 minutes ago

German Auto Supplier Bosch to Cut 5,500 Jobs in Further Sign of Carmakers’ Woes

58 minutes ago

Woman Found Dead in Fresno. Homicide Investigation Underway.

58 minutes ago

Supreme Court Allows Multibillion-Dollar Class Action to Proceed Against Meta

1 hour ago

Community Hospital CEO Craig Castro Will Retire in Early 2025

After five years as president and CEO and more than 20 with Community Health Systems, Craig Castro announced he would retire in early 2025. ...

10 minutes ago

10 minutes ago

Community Hospital CEO Craig Castro Will Retire in Early 2025

11 minutes ago

Conor McGregor Must Pay Woman $250K in Sexual Assault Case, Civil Jury Rules

18 minutes ago

Judge Delays Trump Hush Money Sentencing in Order to Decide Where Case Should Go Now

29 minutes ago

Trump Gave Interior Nominee One Directive for a Half-Billion Acres of US Land: ‘Drill’

32 minutes ago

Fresno State Gets $500K Grant for Students Facing Homelessness

35 minutes ago

NATO and Ukraine to Hold Emergency Talks After Russia’s Attack With New Hypersonic Missile

40 minutes ago

Many in Gaza Are Eating Just Once a Day, as Hunger Spreads Amid Aid Issues

49 minutes ago

Norwegian Student Arrested on Charges of Spying on US for Russia

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

Search

Send this to a friend