Bachan’s Deal Marks Major Expansion (Image Credits: Flickr)
The T. Marzetti Company strengthened its position in the competitive sauces market through a high-profile acquisition and solid growth in licensed products.[1][2]
Bachan’s Deal Marks Major Expansion
A $400 million agreement brought Bachan’s, a fast-rising Japanese barbecue sauce brand, under Marzetti’s umbrella. The company had monitored Bachan’s growth for nearly four years before finalizing the purchase. Bachan’s posted net sales of about $87 million for the 12 months ended December 31, 2025, with a compound annual growth rate of roughly 48% from 2022 to 2025.[1]
Marzetti executives viewed the brand as a perfect fit for shifting consumer tastes. CEO David Ciesinski noted that Bachan’s represents “a premium brand that is exceptionally well aligned with evolving consumer preferences for authentic global flavors and better-for-you products.”[1] The deal, expected to close before June 30, 2026, pending regulatory approval, will integrate Bachan’s into Marzetti’s operations.
Licensed Sauces Drive Market Share Gains
Marzetti’s existing sauce partnerships delivered notable results in recent scanner data. Licensed Chick-fil-A sauces saw sales rise 6.7%, capturing an additional 13 basis points of market share.[1] The company maintains collaborations with several restaurant chains in the shelf-stable sauces and condiments space.
- Arby’s
- Chick-fil-A
- Buffalo Wild Wings
- Olive Garden
- Subway
These alliances helped bolster Marzetti’s footprint amid category competition. Overall scan sales in the retail segment climbed 2.3% for the 13 weeks ended December 31, 2025.
Financial Highlights from Recent Quarter
Lancaster Colony Corp., Marzetti’s parent, reported second-quarter fiscal 2026 results ending December 31, 2025. Net sales reached $517.95 million, a 1.7% increase from the prior year. Net income stood at $59.08 million, or $2.15 per share, reflecting a 21% improvement.[1]
The retail segment generated $277.53 million in sales, down slightly by 1.2%, though operating income fell 9% to $62.76 million. Foodservice sales rose 5% to $240.43 million, with operating income up 21% to $36.79 million. Strong performers included New York Bakery frozen garlic bread, up 8.4% with 44.6% market share, and Marzetti produce dips, gaining share to 75.5%.[1]
Plans for Accelerated Growth Ahead
Marzetti aims to turbocharge Bachan’s trajectory using its established networks. Strategies include wider retail and foodservice distribution, product innovation, and entry into new categories. Supply chain synergies will support scaling the brand efficiently.
Consumer demand for clean-label, international flavors underpins the move. Marzetti’s sauce initiatives align with broader portfolio strengths in dressings, dips, and bakery items.
Key Takeaways:
- Bachan’s acquisition valued at $400 million enhances premium sauce offerings.
- Chick-fil-A sauces grew 6.7%, gaining market share.
- Q2 net sales up 1.7% to nearly $518 million.
Marzetti’s calculated push into sauces positions the company for sustained category leadership as tastes evolve toward bold, global profiles. What do you think about this acquisition’s potential impact on your grocery aisles? Tell us in the comments.
