Tapatio Was Just Bought by a Private Investment Firm—and Fans Are Already Saying RIP

Another day, another acquisition. Right now, it seems like every brand is changing hands, either by transferring from private equity firm to private equity firm or being bought for the first time. A couple of weeks ago, we brought you news of KKR’s planned acquisition of Nothing Bundt Cakes from Roark Capital, news that had fans of the brand very worried. Now, beloved hot sauce brand Tapatio has also dropped the news that it’s been purchased, changing its family-owned status and marking a new phase in the brand’s development.

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The problem is that development really isn’t being embraced by customers. And we get it. Here’s what you need to know.

Thanks for the Good Times, Tapatio

News of Tapatio’s acquisition was announced by Highlander Partners, L.P., a Dallas-based private investment firm that bought the brand from the Saavedra family. “We are excited to partner with Tapatio, a generational business that is distinguished by a strong, authentic brand in the fast growing hot sauce category,” Jeff L. Hull, President and CEO of Highlander Partners, said in 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.” Get ready for all those new whitespace opportunities, guys. 

Tapatio was founded by Jose-Luis Saavedra Sr. in 1971, and since then, it’s been making hot sauce that manages to straddle the boundary between mass-market appeal and small-batch friendliness. Now, though, it looks set to be incorporated into Highlander Partners’ portfolio, which is diverse to say the least: Amongst the brands that the equity firm owns are Pioneer Surgical, an orthopedic implants company, and Rotometal, which makes “bespoke magnetic and print cylinders for flexographic printing machines,” according to the Highlander Partners website. 

Highlander Partners also announced that The Arnold Companies had invested a minority position in Tapatio and that the Saavedra family will keep a minority position in the brand. That said, though, the family will no longer be the main decision-makers. 

What Does This Mean for Tapatio?

Well, according to its fans, it’s really not good news. On a Reddit post discussing the acquisition, multiple people piped up to offer their rest in peace wishes, while one person said, “Fml everything I love gets taken.” It’s not hard to see why they’re concerned. Stories of smaller, but successful brands being bought by equity firms that promptly tank their quality and appeal are tales as old as time, and this could be the latest casualty in that process.

We really hope it isn’t, though. We love Tapatio – its Salsa Picante flavor was our third-favorite hot sauce in our ultimate taste test – and yes, while its frozen meals might need a bit of work, we have a lot of respect for what this brand has achieved. Please don’t mess this up, folks.