US-headquartered private equity firm L Catterton has bought Cholula, as it responds to heightened consumer demand for hot sauces.
Named after the Mexican city of the same name and introduced to the US in 1989, Cholula “has grown to become one of the most beloved hot sauce brands in the world”, L Catterton said.
Made with a blend of piquin and arbol peppers, Cholula is distinguished by the wooden cap featured on its bottles. Flavours include sweet habanero, chipotle, chilli lime and green pepper.
L Catterton said the acquisition will allow Cholula to continue delivering on its potential to become a “powerful and enduring global brand”.
As the hot sauce category continues to expand, and as a result of the Cholula’s resonance with millennial and Hispanic consumers, Cholula is positioned to broaden its distribution around the world both on shelves and in restaurants.
Scott Dahnke, global co-CEO of L Catterton, said: “Cholula represents a compelling opportunity to invest in a premium brand with an established reputation for quality and authenticity in the growing hot sauce category.
“We look forward to partnering with Cholula’s talented management team to capitalise on the brand’s immense whitespace opportunity in the years to come.”
L Catterton principal Matt Leeds said: “It has been a privilege to pursue this unique opportunity on a proprietary basis. We are honoured to be entrusted with the next chapter in Cholula’s evolution, and we are incredibly excited about the possibilities that lie ahead for the brand.”
Last year, L Catterton bought a 27.9% stake in Scottish brewer Innis & Gunn for £15 million.
It also sold Ferrara Candy, the third largest manufacturer of non-chocolate confectionery in the US, to Italian confectionery group Ferrero.
