Dwyane Wade, Dak Prescott & Travis Kelce among athletes profiting from $800m Cholula sale

This week, spice makers McCormick announced they would buy hot-sauce maker Cholula from private-equity firm L Catterton. The Cholula chipotle sauce company would be bought for $800 million, as they are looking to make a profit from the packaged goods in demand during the COVID-19 pandemic. McCormick, who already own Frank’s RedHot and Old Bay hot sauce brands, will aim for Cholula next – who reportedly have $96 million worth of net sales. 

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Cholula hot sauce investment: Group of athletes will benefit from Cholula chipotle sales

A group of athletes including J.J. Watt, Dak Prescott and Travis Kelce invested in Cholula hot sauce in April 2019.

With the acquisition of the sauce brand by McCormick, the investors are expected to generate a return up to four times their original investment, per @Forbes. pic.twitter.com/DdarGMr04N

— Front Office Sports (@FOS) November 24, 2020

As per Forbes, there are numerous athletes who will benefit from the $800 million acquisition by McCormick. As of now, athletes like Dwyane Wade, Victor Oladipo, Travis Kelce, Dak Prescott, JJ Watt and Ryan Tannehill will be getting a return worth four times their initial investment in the hot sauce company. The deal will likely be completed by the end of 2020 and McCormick will adjust their new income by 2021. 

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In December 2018, Cholula was bought by private firm L Catterton for an amount which was not made public. The athletes who invested in the company were introduced to L Catterton through Particof Co – an investment platform which provides free financial advice. However, they expect an annual investment of $500,000. 

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As per reports, it was easy to get Kelce in on the deal. It was referred to as a no-brainer, as he wanted to be involved in the growth of a brand he already loves. As of now, the investment has ended up working for both the athletes and Patricof Co. The company directs their clients to companies like McCormick, which helps them create unique experiences altogether. 

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As people are cooking more at home due to COVID-19, brands like Kellogg (cereal) and Beyond Meat (plant-based meat patty) have experienced a surge in sales. McCormick themselves have seen an 8% jump in sales in the latest reported quarter. This surge is coupled with the hot sauce's popularity, which has grown in recent years.

(Image credits: Dak Prescott Instagram, AP)