Iconic producer and distributor of hot sauce, Cholula, is changing ownership. Last Wednesday, global consumer-focused private equity group L Catterton announced that it had entered into a definitive agreement to acquire the sauce maker for an undisclosed sum.
“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,” said Scott Dahnke, Global Co-CEO of L Catterton. “We look forward to partnering with Cholula's talented management team to capitalize on the brand's immense whitespace opportunity in the years to come.”
According to the company’s press release, L Catterton's acquisition will allow Cholula to become "a truly standalone enterprise" and enable the company to continue delivering on its potential to become a powerful and enduring global brand. The company noted the continuing expansion of the hot sauce category and noted that Cholula is uniquely positioned to broaden its distribution in grocery and foodservice channels around the world.
"It has been a privilege to pursue this unique opportunity on a proprietary basis. We are honored 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," added Matt Leeds, Principal at L Catterton.
L Catterton’s current and former CPG investments also include The Honest Company, Kettle Brands, Zarbee's, Home Chef, Plum Organics, Odwalla, Beanitos, Ferrara Candy Company, and Sweet Leaf Tea, among others.
Will new ownership propel Cholula’s business forward, hooking consumers worldwide on the unique blend of piquin and arbol peppers? Deli Market News will continue to report with updates.