Dive Brief:
- Hot sauce maker Cholula is debuting three flavors of salsa — Original, Salsa Verde and Smoky Chipotle — and three seasoning blends — Original, Smoky Chipotle and Original Garlic. These are the first product launches for the brand that are outside of the hot sauce category.
- Cholula, which was acquired by McCormick & Co. for $800 million in 2020, said in a statement the products are designed to bring its spicy flavors to meals like tacos and enchiladas.
- The decision to expand its product portfolio brings a familiar brand to the Mexican sauces and seasonings space, and comes as consumers increasingly value Mexican foods and meals.
Dive Insight:
Mexican food product launches are on the rise as younger consumers increasingly choose the cuisine as their favorite.
Millennials and Gen Z are the first generations to say they prefer Mexican food to Italian, according to Datassential research sent to Food Dive. Global sales in the Mexican foods segment are projected to grow at a compound annual growth rate of 6.65% through 2026, increasing by $113.8 billion, according to Technavio.
Cholula said its signature hot sauce, packaged with a wooden cap, is the best-selling in its category manufactured in Mexico in the world, based on Euromonitor International retail data.
Its new product lines also bring a new entrant to McCormick’s collection of spices and seasonings inspired by the country’s flavors.
“We’re excited to expand beyond the sauce category and into the mainstream Mexican aisle to deliver that delicious flavor and balanced heat to passionate Cholula fans in new and exciting ways,” Valda Coryat, McCormick’s North America vice president of of marketing, said in the press release.
Even as it expands outside of hot sauce, the company is still innovating its hot sauce line. Last month, it announced the launch of Cholula Reserva Tequila & Lime, which it called the first widely available hot sauce made with 100% agave tequila.
In recent years, other brands in the Mexican space have launched product lines aiming to differentiate themselves. In 2021, Kind founder Daniel Lubetzky, along with former executives Miguel Leal and Rodrigo Zuloaga, launched Somos Foods, a line of plant-based Mexican food products like taco filling, beans, rice and salsa. Each product is gluten-free and non-GMO.
Gluten and grain-free brand Siete — which sells a variety of products including chips, tortillas, seasonings, salsa and other sauces — raised $90 million in 2019, and has continued to expand its product portfolio since.
More Millennials say they like or love Mexican food than Italian, 82% to 79%, according to Datassential. And their younger counterparts, Gen Z, love Mexican most (75%), Chinese second (71%), and Italian third (70%), the data firm said.
