Winona‑based Watkins Co. is set to grow well beyond its traditional extracts and baking‑decorations niche with its anticipated acquisition of Sauer Brands’ spice and seasonings business. Announced earlier this week, the move will matter less for the size of the brands involved and more for the distribution channels they bring.
Kernel Season’s, the largest brand in the deal, is the leading popcorn‑seasoning product sold in U.S. retail, theaters and stadiums, according to industry outlets such as Business Wire and Supermarket Perimeter. The category itself is small, but Kernel Season’s is stocked in more than 30,000 stores nationwide and used broadly in foodservice. For Watkins, that footprint provides access to national retail and concession networks it has not historically reached. Watkins’ products are available nationally but in far fewer locations.
Spice Hunter and Sauer’s spices are smaller players. Spice Hunter has a presence in natural and specialty retailers; Sauer’s is a long‑established regional grocery brand in the Southeast and Mid‑Atlantic. But together, they too will extend Watkins’ reach into channels and regions where it previously had limited distribution.
The sale also clarifies Richmond, Va.-based Sauer Brands’ strategy. By divesting spices, the company is concentrating on its fastest‑growing products, Duke’s Mayonnaise and Mateo’s Gourmet Salsa. Duke’s has expanded well beyond its Southern base in recent years, adding distribution in national grocery chains and club stores. Mateo’s has become one of the country’s best‑selling refrigerated salsas, with strong growth in both retail and foodservice. Dropping spices allows Sauer Brands to direct more investment toward scaling those two brands nationally. Sauer is owned by Advent International, a global private equity firm.
Watkins, meanwhile, will acquire Sauer Brands’ manufacturing plants in Richmond, Va., and San Luis Obispo, Calif. The addition of bi‑coastal production will give it faster shipping to major markets, lower freight costs and a more competitive position against mid‑tier national spice companies that already operate multiple facilities.
The companies expect the transaction to close by the end of this month and did not disclose financial details. Two Minneapolis law firms are assisting on this transaction: Foley & Lardner LLP is acting as legal counsel to Sauer Brands while Faegre Drinker is serving as legal counsel to Watkins.
Watkins was founded in 1868. In 2017, a Minnesota investor group led by J.R. Rigley acquired a controlling interest in Watkins’ extracts, spices, condiments and bitters business (Watkins Co., the subject of this story) while Mark Jacobs retained a substantial ownership stake and remained chairman. Rigley became CEO. Two years ago, Las Vegas-based KDSA Investment Partners and Cannae Holdings acquired a signifcant stake in the company. After investing $80 million into the company, Cannae sold its ownership stake to KDSA about a month and half ago (July 31, 2026) for $90 million.
The other portion of the original Watkins enterprise—the personal care and home care products division—was separated in 2018 as J.R. Watkins and acquired by San Francisco-based Swander Pace Capital with funding from Stellus Capital Management. Swander Pace sold it off to private investors years later. J.R. Watkins headquarters are in Bristol, Penn.
