Why Jimmy Fallon is now in the tortilla chip business

Jimmy Fallon has done plenty of commercials and branded segments on his late-night show. Last year, he partnered with Beats by Dre for a signature set of headphones and put them head-to-head against Kim Kardashian’s design. 

Now, The Tonight Show host is taking his business interests to a new level by becoming a brand partner and investor in tortilla chips and salsa brand Xochitl. His first challenge is pretty basic: teach people how to pronounce the brand name. (It’s so-cheel.)

“It’s like so-chill. Or so-cheel media. So-cheel network. So-cheel distortion,” says Fallon. “It gets easier the more you practice it. So that’s my first job. And then once I get that out there, they’ll probably give me other assignments.”

Xochitl is America’s largest independent tortilla chip brand, but it is still far lesser known than your grocery store staples on the tortilla chip shelf, and lacks full national distribution. It’s looking to Fallon for a mainstream boost.

Founded in 1995, the Irving, Texas-based brand is aiming to take a bigger bite out of the $11 billion North American tortilla chip market. It’s a growing category, with Frito-Lay’s Tostitos brand dominating, and Utz’s On the Border also a major player. Last May, private equity firm Forward Consumer Partners took a 50% stake in Xochitl.

Chairman Matt Leeds says the goal here is to drive brand awareness and grow distribution. Who better to do that than a guy with 32.4 million YouTube subscribers and 27.4 million Instagram followers? “We believe that his involvement will create a lot of excitement, which can open distribution opportunities and retail partnerships,” Leeds says. “As a brand looking to emphasize warmth, authenticity, and shared experiences, Jimmy’s funny, approachable, and family-friendly persona aligns well with us and our brand strategy.”

Now just say the name.

Right chip, right time

At times it can seem like you can’t swing an empty booze bottle without hitting a celebrity tequila or whiskey. And yes, even beer. Fallon says he’s been offered similar opportunities in the past, but none really fit. 

“I’ve been offered my own whiskey, my own tequila, and all that stuff, and I just don’t want to be out there boozing it up at the golf course, selling bottles of stuff,” Fallon says. “What am I doing? I didn’t know anything about that. But this? Tortilla chips, I can get behind. It’s on brand for me, and I have no problem selling this and standing behind it.”

For Xochitl, the strategy is as simple as it gets: Ask a very famous guy who seems fun to not only promote but be involved in the brand. 

“The partnership with Jimmy grew out of a simple insight: Xochitl is hard to pronounce but easy to love,” Leeds says. “We started with a blank sheet of paper, and Jimmy was literally our first and best idea for someone who could help teach people the Xochitl name in a way that’s fun, unique, and memorable.”

Leeds called. Fallon answered. And just so happened to have been eating Xochitl chips that weekend. 

“He called me up, and I said, ‘Wait, I actually know what you’re talking about!’ ” Fallon says. “I had no clue how it’s pronounced, though. He gave me this kind of rundown of where the business is, and I thought this sounded like a fun opportunity. I love business stories, I love marketing stuff, and I’d love to help see something grow and become giant.”

Financial details of the deal were not disclosed.

Marching orders

For Fallon, this is a unique opportunity to work with a brand that has very clear and ambitious objectives in mind. 

“This has the chance and opportunity to really grow,” Fallon says. “When a brand is already massive, then I’m just doing a commercial or something. It’s a paid gig. It’s all good. You do the commercial, and you hope it’s funny. But with this? I’m a partner and an investor, so if it works out, I might actually see some dividends. I’ve got some skin in the game.”

Before announcing the Fallon partnership, Xochitl had fewer than 5,000 Instagram followers. So there’s plenty of room to grow. Fallon is a self-described ad nerd and just wrapped production on a new advertising-based reality show for NBC that’s set to launch later this year. 

Now it’s just a matter of taking everything he’s ever learned about advertising and marketing, and putting it to work. “They’re in select stores and some participating Walmarts, but they’re not in Whole Foods or Target,” Fallon says. “That’s the challenge. I know my marching orders, and I want to see if I can get them there. I want to see if I can get them in every store in the country. It’ll be fun.”

This week, Xochitl is dropping its first-ever flavor collaboration with McCormick & Company’s Cholula hot sauce brand, exclusively at more than 2,000 Walmart stores, and it will roll out on Amazon and at grocers nationwide in the coming months.

Between Late Night and The Tonight Show, Fallon has spent the last 16 years helping his celebrity guests plug their latest movies, TV, music, and more. Now he’s excited to really be selling his own brand.

“One of my jobs at The Tonight Show is to always be selling everyone else’s stuff, which is great. I love it. It’s my favorite job,” he says. “So now I’m, like, ‘Why not do it for myself?’ ”

One more time, it’s so-cheel.

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