Tabasco

Joined Stuart Alexander portfolio    
Australia – 2000
New Zealand - 2001

Market coverage
Australia and New Zealand

Principal
McIlhenny Company
Avery Island, Louisiana, USA

About TABASCO

Since 1868, McIlhenny Company has been manufacturing TABASCO® hot pepper/chilli sauce created by Edmund McIlhenny. Joining the Original formula is a range of distinct flavours and heat levels to suit different tastes.  They are distributed in over 160 countries to both consumers and the foodservice industry.

Key challenges

• To educate consumers about the range of hot pepper/chilli sauces and how they can enhance recipes from pizza, pasta and stir fries to marinades and sauces (consumers traditionally connect Original Tabasco sauce with Blood Mary cocktails and oysters)
• To grow penetration of the foodservice channel for both front- and back-of-house
• To tailor marketing message to appeal to the local audience which is underdeveloped compared to US market
• To police and protect the image and copyright of this iconic brand

Key successes

• With a retail sales value of approximately A$11 million, Australia/New Zealand is now Tabasco’s 10th largest export market up from 17th three years ago
• Locally, Tabasco is #1 in the hot pepper/chilli sauce market with 53% market share and year on year organic growth, competing with Nandos, Masterfoods and Fountain brands
• Since 2009, foodservice uptake has grown substantially through collaboration with specialty quick service restaurants and providing solutions like large volume pump packs for back of house use
• The Original red sauce represents 85% of sales (worldwide it is 80%)
• Habanero flavour which has twice the heat of the Original is the second most popular variant reflecting the changing palate of the local market and smoky barbeque flavour Chipotle is the fastest growing variant in the foodservice sector