Wow, Cholula, when did you become an $800 million brand, and how do I become one? I remember when you were sitting there on the table at the diner, half full, waiting for me to splorch you onto my eggs each day. Now McCormick’s is buying you out from L Catterton for that lofty pile of cash. Good job.
All snark aside, with the hot sauce market growing and growing each year, this isn’t a huge shock. Add in the boost the industry’s received thanks to pandemic quarantining, and you can see where a large manufacturer like Cholula can get traded for nearly a billion dollars.
The Cholula deal makes McCormick a heavy hitter in the world of hot sauce, too. In 2017, the corporation acquired another industry-leading company when it bought Frank’s RedHot. The two companies comprise roughly 30% of the market while attracting different segments of it. It’s like when Disney gobbled up Lucasfilm and Marvel Comics, only spicier.