Bachan's Japanese Barbecue Sauce of Sebastopol picks up $13 million in new funding

Bachan's Japanese Barbecue Sauce has picked up $13 million in new investor funding as Sebastopol entrepreneur Justin Gill continues to scale up his popular product inspired by his family's recipe.

The latest round was led by private equity firm Sonoma Brands Capital. As part of the deal, its managing partner, Jon Sebastiani, has joined Bachan’s board of directors.

Gill said when he was searching for additional investors for Bachan’s, he gravitated to Sonoma Brands because of their shared values. “Sonoma’s retail and digital expertise will be instrumental in building Bachan’s into the Japanese American food brand I know it can be.”

While venture capital funding has slowed because of concerns over the economy, Gill said Bachan’s has continued to grow incrementally and “it’s not slowing down.” Other investors include Pat Tenore, founder of surf and skate label RVCA, and filmmaker Destin Daniel Cretton.

The new funding brings the total investment in Bachan’s to $17 million after it raised an initial $4 million in an earlier round, Gill said.

Since formally launching in 2019, Gill has increasingly broadened the retail reach of his product, which is similar to a teriyaki sauce and comes in three flavors beyond its original version: hot and spicy, yuzu and gluten free. The sauces are made at a co-manufacturer plant in Northern California.

The products are available in 11,000 retail outlets, including Costco, Whole Foods Market and Target, and the sauces will be sold in Publix and Albertsons’ stores nationwide in the fourth quarter.

The company also sells online at www.bachans.com.

Sebastiani, a fourth-generation member of the Sonoma Valley winemaking family, has built up a resume as one of the most active investors in the region after starting Krave beef jerky, selling it to chocolate giant Hershey Co. and then buying back the brand in 2020.

His portfolio also includes holdings in the Guayaki tea producer in Sebastopol and Vintage Wine Estates, which has its central office in Santa Rosa.

“I honestly believe that Bachan’s will become a household brand like Tabasco, Sriracha, ketchup and more,” Sebastiani said in a text message to The Press Democrat.