The Owner of Frank's RedHot Is Buying Cholula Hot Sauce for $800 Million
The seasoning company is expanding its flavor empire.
McCormick, the company behind all sorts of familiar spices, seasonings, and other food flavorings you use in your kitchen every day, is adding another beloved product to its vast empire: Cholula Hot Sauce.
The company is officially buying Cholula from L Catterton, a private-equity firm. The hot sauce brand announced the deal on Tuesday, revealing that McCormick paid $800 million cash for the Mexican-made, much-beloved sauce. That’s a lot of Cholula. The brand joins a serious lineup of tasty sauces and spice blends including French’s mustard, Old Bay, Thai Kitchen products, and even Frank’s RedHot.
The fact of the matter is this: People love hot sauce and everyone has their own preferred brand. The Wall Street Journal, the first outlet to report the acquisition, attributed the increasing interest in the spicy stuff with “growing immigrant populations, increasing familiarity with global cuisines and thrill-seeking food shows.” This year alone almost $1 billion in hot sauce was sold, according to Euromonitor.
Cholula’s annual sales are close to $96 million, according to McCormick, and they’re expected to grow. The spice brand hopes a “normalized” environment—AKA a post-pandemic world—will only boost sales. It’s worth noting, however, that McCormick is doing really well sales-wise due to the increase in home cooking happening around the country.
There’s no telling how, if at all, McCormick will influence or tweak the Cholula we all know and love. Let’s hope they don’t—it’s perfect the way it is.