Sauer Brands sells its spice business and Richmond plant to Watkins

The company that put a glowing vanilla sign on West Broad Street is getting out of the spice business.

Sauer Brands, the Richmond food company behind Duke’s Mayonnaise, announced Wednesday that it has agreed to sell its spice and seasonings business to Watkins, LLC. Watkins is a flavor company based in Winona, Minnesota. The sale includes Kernel Season’s popcorn seasonings, Spice Hunter, and Sauer’s branded spices and seasonings, plus Sauer’s private label and foodservice spice businesses. Watkins will also take over Sauer Brands’ manufacturing plants in Richmond and San Luis Obispo, California.

Neither company disclosed financial terms. They expect the sale to close by the end of the third quarter of 2026, once customary closing conditions are met.

Mayo isn’t part of the sale. Sauer Brands keeps Duke’s, Mateo’s Gourmet Salsa, its foodservice business, and the mayonnaise and condiments sold under the Sauer’s name. After closing, you’ll find the Sauer’s name on products from two different companies: spices from Watkins and condiments from Sauer Brands.

A narrower focus for Sauer Brands

CEO E. Yuri Hermida said the sale fits a plan to shrink the company down to condiments.

“This transaction is an important step in our broader strategy to build a more focused condiments business, which includes our flagship brands Duke’s Mayonnaise and Mateo’s Gourmet Salsa, as well as a leading foodservice business,” Hermida said. “Duke’s Mayonnaise and Mateo’s Gourmet Salsa are growth leaders in their respective categories, beloved by a loyal and growing consumer base, and each has significant runway as they evolve from regional favorites into brands with national scale.”

He also pointed to how long spices have been part of the company. “Our spice business represents an important part of the Sauer Brands heritage,” he said. “Watkins recognizes the value these spice and seasoning brands have built over the years, and we are confident it will be the ideal home to support its continued growth.”

That history goes back a long way. Conrad Frederick Sauer founded the C.F. Sauer Company in Richmond in 1887. In 1911 the company opened its factory and headquarters on West Broad Street at Hermitage Road. The building and its lighted vanilla extract sign are both on the National Register of Historic Places. Sauer bought Duke’s in 1929 and stayed privately held for 132 years. Then Falfurrias Capital Partners bought it in 2019, and Boston private equity firm Advent International bought it from Falfurrias in February 2025.

The spice brands were added over the years. Sauer bought Spice Hunter, a San Luis Obispo company founded in 1980, around 1999. That’s where the California plant comes from. Kernel Season’s, started by Chicago Custom Foods in 2000, joined Sauer Brands in 2020.

Watkins adds to its spice lineup

Watkins makes spices, seasonings, extracts and baking decorations, and it has been in business for more than 150 years. CEO J.R. Rigley said the Sauer brands fit well with what the company already sells.

“Kernel Season’s, Spice Hunter and Sauer’s branded spices and seasonings are exactly the kind of high-quality brands that complement the heritage business Watkins has been growing for more than 150 years,” Rigley said. “As a trusted and dedicated flavor company, we are excited to introduce Sauer’s spices to generations of our loyal consumers. We see significant potential in using Watkins’ expertise and steadfast reputation to expand our reach in branded, foodservice and private label categories.”

Watkins will get all branding and distribution rights to the three spice lines.

What it means for Richmond

The big local question is what happens at the plant. The announcement says Watkins will take ownership of Sauer Brands’ Richmond manufacturing facility. It doesn’t say how many people work there, whether they’ll become Watkins employees, or whether Watkins plans any changes. Richmond BizSense reported in early 2025 that Sauer’s Richmond plant had about 125 employees, with another 75 at the company’s headquarters.

Sauer Brands’ headquarters will stay in Richmond. The company also has facilities in Mauldin, South Carolina, and New Century, Kansas, and the sale doesn’t include either one.

After closing, Sauer Brands keeps its Richmond headquarters and its focus on mayo and salsa. If the sale closes on schedule, Watkins takes over the spice business and the Richmond plant by the end of the month.