Spice-maker McCormick announced that it will acquire Cholula Hot Sauce for $800M. McCormick noted that the acquisition was driven in part by a desire to broaden its portfolio in the growing hot sauce category. Cholula generates $96M of annual revenue (according to the deal announcement) and will join McCormick’s existing portfolio of widely-recognized consumer brands (including Frank’s RedHot, French’s, Lawry’s, and Old Bay).
More context: The acquisition comes amid strong demand for consumer packaged goods and grocery products amid the ongoing coronavirus outbreak. US grocery store sales are up 12% so far this year (compared to the same period last year), while overall retail sales are roughly flat over the same period (source).
