The surge in popularity of weight loss drugs like Ozempic is fuelling a boom in hot sauce sales, contributing to the sale of iconic Los Angeles brand Tapatío. The Saavedra family, who kept their recipe secret for over 50 years, sold the business to Highlander Partners in January for an undisclosed sum.
GLP-1 medications, now used by 12% of Americans, can cause cravings for more flavour, driving demand for condiments. Highlander Partners Chairman Jeff Partridge noted that consumers are increasingly seeking flavours, whether due to GLP-1 drugs or a desire for protein-rich diets.
Tapatío was founded in 1971 by Jose-Luis Saavedra, who started making the mild, red-pepper-based salsa in his kitchen. After being laid off from an aerospace parts manufacturer, he began selling bottles to coworkers. The family business grew steadily, but after Saavedra suffered a stroke at age 97, his son Luis took over and became burned out, leading to the decision to sell.
“Work was really devouring me,” Luis Saavedra told the Los Angeles Times. “It was a tough decision, very difficult. We cried together as a family, then we said, ‘In the long run, it’s better.’” The family retains a minority stake and will continue to have a voice in the brand.
The new owners have “grand plans” for expansion, including more facilities and products. The trend is not limited to Tapatío; Japanese barbecue sauce brand Bachan's was also recently purchased by Marzetti Company, whose CEO described it as “GLP-friendly.” Increased chicken consumption, driven by protein focus, further boosts demand for flavourful sauces.
