Sauer Brands is acquiring a new asset to help expand its private brand capabilities. The company, which creates condiments, seasonings, and spices for private label and branded products, has acquired Mateo’s Gourmet Salsa, an independent company.
The deal marks Sauer's entry into the salsa business and is an expansion of their product portfolio. This is the second add-on investment for Sauer and Falfurrias Capital Partners, who have owned Sauer since 2019, having acquired popcorn seasoning brand Kernel Season's in 2020.
Mateo's was created in 2010 by Andrew Robbins, who decided to market the homemade salsa his father created. Mateo's all-natural line of products is marketed across the country through such retailers as Costco, Walmart, Target, Publix and Kroger. Sauer will use the acquisition to expand into private label salsa offerings.
“Private label is an important part of our business, which we are focused on developing through strategic partnerships,” Sauer Brands CEO Martin Kelly told Store Brands. “Once we have the opportunity to fully understand what has made Mateo’s successful, we will look at expanding the portfolio of products we offer to our private label partners.”
Sauer's acquisition of Mateo's is an example of Falfurrias' "Industry First" investment approach which combines data, exhaustive research and expertise to identify attractive industries and partner with experienced advisors to build differentiated and sustainable companies, says the company.
"We have a tremendous packaged foods platform in Sauer Brands, and from the early days of our investment, our world-class leadership team, led by Martin Kelly, identified salsa as the most attractive category for future expansion," said Falfurrias partner Chip Johnson. "In Mateo's, we've found the perfect addition to our portfolio – another high-growth, iconic brand that consumers adore."