Condiment giant McCormick & Company, Inc. is poised to spice up its condiment product line with the acquisition of Salsa Cholula, a hot-sauce brand produced in Chapala.
In an announcement November 24, company executives revealed they have sealed a deal to buy out the Cholula brand from the private-equity firm L Catterton by the end of this year, for a staggering 800 million dollars.
According to U.S. news media sources, McCormick is banking on a handsome return on the investment, based on the eight-percent bump seen in sales revenue for its latest reporting quarter, attributed to growing demand as consumers have turned to higher consumption of home-cooked meals during the Covid-19 pandemic.
Salsa Cholula has become a hot product on the U.S. market since the brand was introduced there in 1989. The line has been expanded more recently to include Green Pepper, Sweet Habanero, Chipotle, Chile Lime and Chile Garlic flavor varieties to appeal to different palates. Cholula’s net sales run to about 96 million dollars per annum, with up to 90 percent generated in the United States alone.