An iconic Los Angeles hot sauce brand could be soon become even more popular — in part thanks to the boom in GLP-1 drugs.
The Saavedra family, who are behind the popular hot sauce, Tapatío, refused to write down their recipe until this year, when they decided to sell their family business.
Their decision to sell comes as the demand for hot sauce has spiked across the country, partly due to the growing number of Americans taking weight loss medications like Ozempic, which can cause cravings for more flavor, the Los Angeles Times reported.
Highlander Partners, the Dallas private investment firm that bought Tapatío for an undisclosed sum in January, hopes to capitalize on the increased demand.
“Whether it’s GLP-1 or desire for proteins, Tapatío and hot sauces enhance that experience,” Highlander Partners Chairman Jeff Partridge told the outlet. “Consumers are increasingly seeking flavors.”
Tapatío, which originated in founder Jose-Luis Saavedra’s kitchen more than 50 years ago, is a thin, red-pepper-based salsa picante that delivers a mild punch.
Saavedra, originally from Mexico City, ended up in Southern California after meeting his wife. His homemade hot sauce was popular amongst his coworkers at an aerospace parts manufacturer in Los Angeles, and when he was laid off in the 60s, he started selling bottles.
Tapatío officially became a business in 1971. Within five years, Saavedra was able to quit the two part-time jobs he had taken on to support the operation.
The family-owned business continued to grow over the years. Even though Tapatío is most popular in California, the hot sauce has made its way across the globe.
Even with the success, the Saavedra family began looking to sell their company in 2024, after the founder, Jose-Luis Saavedra, now 97, suffered a stroke.
His son, Luis Saavedra, took over the business, but became burned out and concerned that keeping the company family-owned was not the right decision.
“Work was really devouring me,” Luis Saavedra told the LA 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 company’s new owners say they hope the current demand for hot sauces, amidst a spike in GLP-1 use, will help them expand their market.
“We believe that we’ve got these sector tailwinds behind us,” the company’s current chief executive, Eric Beatty, told the outlet. “It’s going to be a really good story.”
Despite the change in hands, the Saavedra family still has a minority stake in the company.
“They are the essence of the brand, and really understand the heartbeat of the brand,” said Partridge, the company’s new chairman. “We certainly want to make sure that they always have a voice.”
The new leadership has “grand plans” for the brand, the LA Times reports, including more facilities and product.
GLP-1 drugs, now used by 12 percent of Americans, have fundamentally changed the food industry — including by causing the recent surge in condiments.
Many people who take weight loss drugs are also opting to consume more protein as a means to avoid muscle atrophy, leading to the demand for condiments and species to add flavor to their meals.
Tapatío isn’t the only company to be sold as part of the recent trend. Japanese barbecue sauce brand Bachan’s also recently changed hands, after being purchased by the Marzetti Company, a specialty food products manufacturer.
Following news of the sale, Marzetti CEO David Ciesinski told investors that Bachan’s was “GLP-friendly.”
Given the current focus on protein in many Americans’ diets, there has been a rise in chicken consumption.
“And we all know that chicken tastes like chicken, so it begs for flavor,” Ciesinksi told Reuters earlier this year.
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