Formosa Hot Sauce: Handcrafted to Perfection

Julio Lopez Velasquez, CEO and Founder of Formosa Sauce Inc., has been dedicated to crafting healthy and flavorful hot sauces since 1984. Inspired by a family recipe from a small village in Mexico, Julio perfected this family treasure over the years. Today, Formosa Sauce Inc. proudly shares its 100% natural, vegan and glutenfree hot sauces, blending authentic flavors with a commitment to quality for over 39 years. DeliveryRank offers you an exclusive interview.

Formosa Hot Sauce emphasizes all-natural, gluten-free, and vegan products. Could you share more about the development process of these sauces and the challenges you’ve faced in maintaining these standards while ensuring bold, unique flavors?

I’m a former chef, and back when I had a restaurant with my sister-in-law, we used to sell our original hot sauce the habanero flavor, directly to customers. Eventually, I decided to bottle the sauces, and I developed new recipes to expand the range. From the start, it was a challenging journey—as any new business is—with licenses, permits, pricing, and countless other hurdles to navigate.

What set me apart, though, was my focus on branding. I worked tirelessly to get it just right, ensuring our product stood out. Unlike many others, our sauces are vegan, gluten-free, all-natural, and versatile—they can be used as a cooking sauce, marinade, or even a traditional hot sauce.

Our first big breakthrough came when we showcased at the Fancy Food Show in New York. We presented ourselves as a much larger company, only bringing 50 cases with branding that looked professional and polished. That effort paid off—we secured our first major order for 10,000 bottles. But that was also when reality hit. At the time, I was still cooking from home, and I had no idea how I was going to produce such a large quantity.

That order forced me to learn quickly—everything from working with the health department to securing an industrial kitchen, sourcing bottles, and managing production and labeling. It was overwhelming, but we fulfilled the order. It wasn’t without mistakes, though. In the beginning, we were hand-filling bottles with a pitcher! But through trial and error, I refined the recipes and streamlined the process.

Now, we’re capable of producing up to 2,000 bottles a day. Our sauces are sold across the United States, Canada, and even Japan. It’s been a long road, but one filled with invaluable lessons and growth.

The introduction of the Roasted Peppers flavor highlights your commitment to innovation. What inspired this particular flavor profile, and how does it complement the rest of your product line?

Our journey began with our original Habanero sauce, which we sold at our restaurant before I decided to expand into bottled products. Before presenting at the show, I developed a Chipotle sauce, but I quickly realized there was demand for something even milder. That’s when I created the Jalapeño sauce, which many people enjoy using almost like a dressing.

As someone who loves Cajun food, I wanted to create something truly special and versatile for those flavors. I came up with the idea to roast seven different types of peppers, experimenting with combinations to achieve the perfect smoky, hickory flavor. It took about four months of refining the recipe, adjusting acidity levels, and ensuring it could last at least two years without preservatives. The result was something I’m incredibly proud of—it’s like my baby. This sauce stands out from the others, not only in flavor but also in versatility. It pairs beautifully with Cajun dishes, and you can pour it over just about anything for a rich, smoky kick.

The process was a labor of love, involving countless measurements, trials, and adjustments, but it was worth it to create something completely unique and true to my vision.

Formosa offers a variety of packaging options, including gift wooden boxes and larger quantities like the half gallon and gallon-sized Roasted Peppers and our other flavors as well. How do you tailor your marketing and distribution strategies to cater to both individual consumers and wholesale clients?

From the beginning, I’ve always had a strong foundation in sales, having run two other companies and worked extensively in the field. I’ve also ventured into film production and real estate, but when I decided to focus on this business, I knew I had to approach things differently.

At the Fancy Food Show, we received numerous offers from distributors, but I quickly realized their terms primarily benefited them, not us. I knew taking that route could jeopardize the business, so I made the decision to forgo traditional distribution. Instead, I focused on building direct business-to-business relationships, starting locally with wineries and expanding across the United States. Leveraging my experience in the culinary world—running a restaurant and catering business—I recognized a demand for larger quantities like half-gallons and gallons, especially among cafés and restaurants. Today, many businesses use our products for cooking, mixing dressings, and enhancing their offerings.

It wasn’t easy at first. I spent considerable time sending samples, reaching out, and building connections, but the effort has paid off. We now have over 120 stores across the U.S. carrying our products. On the consumer side, I focused on visibility by attending trade shows and partnering with larger companies for pop-ups, allowing people to try the products firsthand. This grassroots approach helped generate buzz, and now, we have a loyal customer base ordering directly from our website.

To diversify further, we’ve established an online presence through platforms like Amazon, Walmart, and Etsy, targeting multiple markets simultaneously. By handling distribution in-house, we’ve eliminated the need for middlemen, allowing us to maintain control and profitability. The business-to-business approach has been especially successful, bringing in one to two new customers weekly while allowing us to grow steadily and sustainably.

Your website includes recipes and a journal. How do you see these resources enhancing customer engagement, and what role do they play in shaping the Formosa brand's identity?

As a chef, I’ve always focused on showcasing our products in a way that feels authentic and engaging. If you look at our social media, it’s all about food—I’m constantly cooking, taking pictures, and sharing ideas. To elevate this, I bring in a professional photographer two to three times a year to capture recipes I’ve created, making everything look polished and appealing. These images, along with new recipes and flavors, are included in bi-monthly email that we send to our customers. This keeps them excited and inspired, showing them how to use our products creatively.

Our email campaigns often lead to customers reaching out with questions like, “How can I use this in my cooking?” We always direct them to our Instagram, where we have an extensive collection of recipes and tips. We also collaborate with other chefs from diverse culinary backgrounds—Mexican, Indian, and more—who use our hot sauces in unique ways. When they share their creations, we feature them on our social media, highlighting the versatility of our products. This approach not only engages our audience but also celebrates the creativity of chefs who love our sauces.

As a business rooted in Milpitas, California, how has your local community influenced the direction of your product offerings and overall growth?

We’ve built strong relationships with local businesses, which has been a cornerstone of our growth. For example, we supply Napa Valley Farms at the airport, Heat Hot Sauce Shop, We Olive as well as numerous wineries and restaurants in the area. These local partnerships are incredibly meaningful to me, and I still personally deliver to some of my first customers, even though I don’t have to. I value these relationships deeply because they played such an important role in helping our business grow.

It’s always exciting to hear from people across the world who’ve discovered our products. We often get messages from Europe saying, “I tried your hot sauce at a winery in Napa,” or emails from unexpected places where our sauces have made their way through resellers. It’s amazing to see how our reach has expanded organically.

In addition to working with local businesses, I’m actively involved in the community. I collaborate with the Chamber of Commerce and participate in charitable initiatives with organizations that address food insecurity. We also work with big companies like Facebook, PayPal, and others for events and pop-ups, which allows us to connect with people on a more personal level. Giving back is an important part of what we do—it’s not just about making a profit but also about supporting the community that has supported us.

If you would like to find out more about Formosa, please visit https://www.formosasauce.com/