Dive Brief:
- McCormick & Co. announced it has completed the acquisition of 100% of the shares of One World Foods, Inc., which sells Stubb's barbeque sauces. The acquisition was initially announced in June.
- Stubb's craft barbeque sauces will join McCormick's portfolio for grilling products, which already includes the Grill Mates, Lawry's, and McCormick brands.
- "The deal isn’t expected to affect McCormick’s earnings in 2015, though the Maryland-based spice company expects it to add Ebitda of at least $10 million by 2017," The Wall Street Journal reported in June.
Dive Insight:
Craft beer, craft soda, craft spirits, and now craft barbeque sauce? Craft food and beverage manufacturers focus on ingredients and flavor and often have more natural components than traditional processed foods. This is attractive to consumers and major food and beverage companies that want to capitalize on the craft movement to capture target demographics, such as millennials.
Stubb's is an avenue for McCormick to have a stronger position in the premium sauces and grilling products categories. In return, Stubb's will enjoy "expanded distribution, increased household penetration and innovative flavors," according to a news release.