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McCormick To Acquire Premium Barbecue Sauce Brand Stubb’s


McCormick & Co. has signed an agreement to acquire all shares of One World Foods, seller of Stubb’s barbecue sauces, a privately held company located in Austin, Texas, for approximately $100 million in cash.

Stubb’s is a leading premium barbecue sauce brand in the U.S. and, in addition to sauces, its products include marinades, rubs and skillet sauces. McCormick says Stubb’s products complement the company’s range of grilling items with the addition of authentic, craft barbecue sauces. McCormick plans to drive sales of the Stubb’s brand through expanded distribution, increased household penetration and innovative flavors.

Alan Wilson, chairman and CEO of McCormick, said, “We are pleased to announce this agreement to acquire Stubb’s. Based in Texas, Stubb’s is an authentic, craft brand with an enthusiastic and loyal consumer base. Through marketing and innovation, we intend to build this base, increase household penetration and expand retail distribution in the U.S. and internationally. The Stubb’s products round out the range of grilling products currently marketed by McCormick under the Grill Mates, Lawry’s and McCormick brands. We look forward to working with the Stubb’s employees to drive increased sales and profit for this business.”

After opening his first Stubb’s Legendary Bar-B-Q restaurant in 1968, C.B. Stubblefield began selling his popular sauces to retail grocers in 1992. These products feature bold flavors made of high-quality ingredients.

McCormick intends to maintain the headquarters of this business in Texas. With newly expanded distribution and product offerings, annual sales growth exceeded 20 percent in both 2013 and 2014. Annual sales of the business are projected to reach $30 million in 2015.

The acquisition is expected to be completed by the end of July, subject to regulatory approval.

About the author

Kristen Cloud

A former newspaper editor and publisher, she once enjoyed leisurely perusing the grocery store aisles but, since having a baby in 2016, she is now an enthusiastic click-and-collect shopper.

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