With Momentum Building, Is Bachan’s Headed for a Sale?

Japanese barbecue sauce slinger Bachan’s may be the latest condiment brand to explore an exit, according to Axios Pro.

Citing three sources familiar with the matter, the publication reported that Bachan’s has hired investment banking advisory firm Centerview Partners to test the market in preparation for a sale.

Launched direct-to-consumer in 2019, the California-based company produces a 10-SKU line of Japanese-style barbecue sauces available in flavors such as Sweet Pineapple, Roasted Garlic and Yuzu Citrus, as well as a collection of dipping sauces in Original, Sweet & Spicy and Totally Garlic varieties.

Though its flagship product is more comparable to traditional teriyaki sauce or glaze for American palates, the term “barbecue sauce” has aided Bachan’s in securing shelf placement in the traditional condiment set rather than the international aisle. As of May, its products are available in over 25,000 doors nationwide, including Whole Foods, Target and Costco, per Bloomberg.

Justin Gill, founder and CEO of Bachan’s, told Bloomberg that the company’s barbecue sauces and dips are stocked in approximately 5% of U.S. household pantries.

“We have become part of [our customers’] household pantry. [It] comes down to having a really high-quality product that’s versatile and that people want to use in every meal, not just once a year,” Gill previously told Nosh.

In addition to retail, Bachan’s has expanded its foodservice footprint over the past few years. In April, fast-casual restaurant chain Chopt featured the company’s Yuzu Citrus Barbecue Sauce in the Bachan’s Sesame Salad and Wasabi Salmon Bowl as part of its spring menu. Additionally, the brand collaborated with Crisp & Green on a Japanese BBQ wrap.

Having captured investors’ attention with its unique taste profile and revenue growth potential, Bachan’s has raised a total of $17 million in funding, according to Crunchbase. Most recently, the company secured $13 million in 2022 in a round led by investment firm Sonoma Brands Capital, with participation from existing investors Prelude Growth Partners, RVCA founder and president Pat Tenore and filmmaker Destin Daniel Cretton.

Bachan’s is on track to exceed $100 million in revenue this year, according to an individual familiar with the company who wasn’t authorized to speak publicly, Bloomberg reported. However, a spokesperson for Bachan’s declined to comment on the company’s financials.

The condiment category is ripe with opportunity, especially amidst an increase in home cooking. Meal prep items and budget-friendly pantry staples will likely be the biggest winners if current consumer trends are any indication, per a new U.S. Economic Sentiments Survey from contextual advertising platform Chicory.

The category has also become a hot acquisition target as of late, with recent deals including Duke’s Mayo and Lillie’s Q Sauces and Rubs.