Why Tapatío is being boycotted by hot sauce lovers
Loyal lovers of a beloved hot sauce company are allegedly turning their back on the brand months after a private equity firm officially acquired it.
If you head to the popular Hot Sauce thread on Reddit, then you may stumble upon news that Tapatío, founded by the Saavedra family, has been acquired by Highlander Partners, a Dallas-based private investment firm.
While financial terms of the deal were not disclosed, it was reported that the Downey-based team, which brought the condiment to life under the name ‘Cuervo’ back in the early 1970s, maintain a minority position in the business.
Despite the news, the Reddit thread is littered with backlash.
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Comments like: “Fml everything I love gets taken”, “Literally my favourite hot sauce. Please don't ruin it,” and: “Find an alternative, f**k private equity. Let ‘em fail,” have been posted on the social media site.
Another disgruntled user typed: “Well, it was good while it lasted. Get ready for quality to suffer.”
“Private equity doesn't always ruin things, only 95% of the time,” alleged someone else.
According to Highlander, whose portfolio includes Balanced Nutritionals, Pretzilla, and Romanian snack brand SanoVita, the acquisition will see Tapatío being expanded into new markets.
The plan is for distribution channels to be broadened and for the cult-favourite item to ‘move into complementary product categories’, as per local outlet, The Downey Patriot.
Jeff L. Hull, president and CEO of Highlander Partners, said his company was ‘excited’ to partner with the generational, authentic business, as per a press release.
“We believe that Tapatio is poised to benefit from several secular trends that are dramatically reshaping consumer food choices, and we look to take advantage of the brand’s significant whitespace opportunity,” he continued.
Meanwhile, Jeff Partridge, partner at Highlander, confirmed that the firm shared the Savedra family ‘vision to maintain the brand’s legacy’ as it continues to ‘target opportunities to grow the brand geographically’.
The businessman said that new flavours and products will be on the horizon.
FOODbible has contacted Tapatío for comment on the backlash.
Tapatío isn’t the only beloved brand to be snapped up by a private equity firm in recent months.
Earlier this week, PBS reported that Pizza Hut was being sold for $2.7 billion by parent company Yum Brands.
Yum, which owns KFC and Taco Bell, claimed that the private equity firm LongRange Capital would purchase Pizza Hut, excluding the mainland China business, for about $1.5 billion.
The news comes after Yum Brands announced plans to shutter 240 US locations, with Neil Saunders, managing director of GlobalData, calling the chain the ‘weak link’ in Yum’s portfolio.
“Despite efforts to revitalise the brand and shut underperforming locations, it has become increasingly clear that pushing the division back into growth will require a level of investment and patience that Yum is just not prepared to commit to,” he added.
But just because a private equity company buys a business, it doesn’t mean its destined to stay in its portfolio forever.
Back in 2020, US spice giant McCormick & Co aquired hot-sauce maker Colula from L Catterton, which acquired the brand a year previous, for $800 million.
The acquisition bolstered McCormick's portfolio of hot sauce brands, which also includes Franks RedHot, as per Kirkland.
Despite Cholula no longer being owned by a private equity company, fans on the Reddit thread seemingly still aren’t buying it.
“Cholula better anyway,” said one social media, which prompted someone else to reply: “Cholula also sold.”
“And tastes different now,” a third user chimed in. A fourth rushed to the brand’s defence and wrote: “The chili garlic still slaps.”
Ella Scott