Sabrosura Foods Acquires Pancho’s, Expanding Snacking Portfolio

Sabrosura Foods announced the acquisition of Pancho’s Mexican Foods, Inc., the maker of the popular queso dip prepared since 1956. Pancho’s will join Sabrosura Foods’ family of well-known brands, which includes: El Viajero, La Morenita, Reynaldo’s, and Bio Salud!

According to the company, Sabrosura Foods is a natural partner for Pancho’s to continue its rapid expansion nationwide across the mass, club, and grocery channels. The terms of the transaction were not disclosed.

Founded in 1956, Pancho’s gained popularity as a local Memphis favorite before evolving as a leading brand in the refrigerated queso dip category, now found at more than 1,200+ stores nationwide. Pancho’s maintains a highly loyal consumer following because of its great-tasting, high-quality product, and exclusive use of fresh ingredients, with no artificial fillers and flavors.

Headquartered in Bloomington, Minnesota, Sabrosura Foods is a marketer and distributor of branded Hispanic food products, including cheeses, desserts, and meats. Sabrosura has several authentic Hispanic brands, including El Viajero, La Morenita, Reynaldo’s, and Bio Salud!, alongside broad private label capabilities. The business is a portfolio company of Centre Partners.

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“We couldn’t be more excited to join the Sabrosura Foods family,” said Brenda O’Brien, President of Pancho’s Mexican Foods, Inc. “Pancho’s has been in my family for 65 years, and we have been so grateful to bring people together over delicious food. Now, we are looking forward to our next chapter as part of the Sabrosura Foods team.”

Authentic Pancho’s Cheese Dips have been famous since the very first Pancho’s Restaurant opened in 1956.  Pancho’s now offers a variety of dips to enjoy, including Original Queso Dip, Chipotle Queso Dip, and White Queso Dip.  Consumers can find Pancho’s queso dips in the refrigerated dairy case at leading supermarket chains, big-box retailers, and independent grocery retailers throughout the country.

The acquisition adds a historic, 60-year-old consumer-loved brand to Sabrosura Foods’ portfolio of Hispanic brands and further enhances the company’s position in the fast-growing queso dip category.

“Sabrosura Foods is thrilled to acquire Pancho’s, further building our portfolio of Hispanic cheese products available in stores nationwide. A key pillar of Sabrosura Foods’ growth strategy has always been focused on acquiring complementary product capabilities,” said Jeff Caswell, CEO of Sabrosura Foods. “We are proud to be able to continue Pancho’s legacy and are eager to introduce Pancho’s queso dip to even more consumers across the fast-growing snacking category.”