With restaurant roots dating back to 1896, and a jarred sauce business beginning in 1992, Rao’s win as NOSH’s Brand of The Year for 2023 really has been a longtime coming.
Nevertheless, this year’s sale to The Campbell Soup Company has shown the world what the industry has known for quite some time: Rao’s literally has the secret sauce.
Sure, Campbell bought the entire Sovos portfolio for $2.7 billion, but a look at corporate filings and communications reveals it was Rao’s that was one of the most appealing parts of the pickup – accounting for 69% of Sovos’ total net sales for calendar year 2022.
Credited with creating the ultra premium sauce category, Rao’s paved the way for countless chefs and restaurants to enter the set. Its success has not only inspired competitors, but also a new generation of entrepreneurs who want to be “The Rao’s” for another category by drawing in new shoppers who will pay higher prices for ultra premium products. And the brand has proven it’s not just a one-SKU wonder, expanding into soups, dried pasta, frozen food and specialty sauces.
While Rao’s is our brand of the year, expect to still see more from the company. Despite organic net sales growing nearly 35% in the last year alone, household penetration remains at around 15% and Campbell’s execs have emphasized they see plenty of room left for Rao’s to run.
