Pancho's Cheese Dip brand sold: Memphis' beloved dip now part of Sabrosura Foods

Jennifer Chandler, Memphis Commercial Appeal
·2 min read
Sabrosura Foods, LLC has acquired the Pancho's Mexican Foods Inc. brand. The brand includes Pancho's Original Queso Dip, Chipotle Queso Dip and White Queso Dip.
Sabrosura Foods, LLC has acquired the Pancho's Mexican Foods Inc. brand. The brand includes Pancho's Original Queso Dip, Chipotle Queso Dip and White Queso Dip.

Say it isn't queso. Memphis' beloved cheese dip is no longer a Memphis brand.

It was announced Nov. 16 that Sabrosura Foods, LLC, a leading marketer and distributor of branded Hispanic foods, has acquired the Pancho's Mexican Foods, Inc. brand.

The brand includes Pancho's Original Queso Dip, Chipotle Queso Dip and White Queso Dip.

This comes on the heels of the closure of the remaining two Pancho's restaurants earlier in November.

Founded in 1956, Pancho's gained its 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.

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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."

Sabrosura Foods is headquartered in Bloomington, Minnesota.

Terms of the deal were not disclosed.

Pancho's Mexican Restaurant at 717 N. White Station Rd.
Pancho's Mexican Restaurant at 717 N. White Station Rd.

The acquisition adds a historic, 60-year-old consumer-loved brand to Sabrosura Foods' portfolio and 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," said Jeff Caswell, CEO of Sabrosura Foods. "A key pillar of Sabrosura Foods' growth strategy has always been focused on acquiring complementary product capabilities.

"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."

Pancho's will be added to the portfolio of brands that includes El Viajero, La Morenita, Reynaldo's and Bio Salud!.

Jennifer Chandler is the Food & Dining reporter at The Commercial Appeal. She can be reached at jennifer.chandler@commercialappeal.com and you can follow her on Twitter and Instagram at @cookwjennifer.

This article originally appeared on Memphis Commercial Appeal: Pancho's Cheese Dip sold to Sabrosura Foods, a national distributor