The Sauz Is Simmering: Can It Build For A New Generation?

The pasta sauce aisle is largely dominated by products hailing from New York-based Italian restaurants or made by large conglomerates – oftentimes, both. (See: Campbell’s acquires Rao’s owner Sovos Brands)

While Los Angeles might not be a hotspot for authentic Italian cuisine, it is known as a place for reinvention, and that’s exactly what aptly named next-generation pasta sauce brand Sauz is aiming to do to the jarred tomato sauce category.

“We wanted to do something that was fun [and] would pop to the consumer, but also that wasn’t random,” said co-founder Winston Alfieri. “We wanted something that was in the premium sector…and people would pick it up and [understand] the whole brand, the aesthetic, and [how] it all fits together.”

Alfieri and co-founder Troy Bonde, childhood best friends and University of Southern California graduates, developed the idea while still in school. The duo was strolling through the grocery store and questioned why flavor innovation had seemingly reached all corners of the store, except for pasta sauce.

“The beverage aisle was bright and colorful and trendy and exciting,” said Bonde. “We’d pick up the Olipops of the world, and we’d be enamored by them. But we’d get to the pasta sauce aisle, and it was old Italian [brands], tan labels, cursive writing – nothing visually appealing, and by virtue of that, we would defer to flavor. On the flavor side as well, everything was tomato basil, Pomodoro, marinara – it was nothing that really caught our eye.”

That got these then-business school students thinking: The category itself often led consumers to “buy by brand” rather than the product itself. As Los Angeles natives with no personal connection to the many of the brands on shelf, and little flavor variation to help hone their decision, the idea for a new type of sauce that fulfilled both of those needs started to simmer.

“We figured there was a huge opportunity to take this two-pronged approach and build a cheeky and fun, dynamic, exciting brand – the way we’d seen done in beverage – but also pair that brand identity with really innovative, flavor-forward SKUs,” said Bonde.

That pitch has connected with buyers and category managers seeing similar category trends, they claim. Within a year of graduation, the duo launched the brand in 24 oz. jars ($9.99 each) in two flavors: Hot Honey Marinara and Summer Lemon Marinara. Sauz debuted exclusively at Erewhon and has since expanded to Whole Foods stores in the SoPac region, as well as Gelson’s, Central Market, HEB and Town and Country, among others.

That has also been an important factor as it worked to generate trial among consumers. On TikTok, Sauz’s strategy has helped it go viral with some videos garnering over 500,000 views. And while it may seem like Sauz has tossed out the status quo in many ways, Bonde and Alfeiri emphasized there is a core, tried-and-true way they are building up the brand: In-store demos.

“There’s really no better way to understand our consumer,” said Alfeiri. “The key to really building a consumer base for us is driving awareness, but also just getting consumers to try products… it’s not easy to understand them without trying it… and then a lot of it’s been word of mouth from there.”

Those demos have not only generated strong sales, but has also helped encourage repeat purchase and consumer retention, Bonde claimed. That has been particularly important as Sauz has worked to prove consumer’s willingness to buy into their plan to build a next-generation pasta sauce concept.

“We didn’t do a ton of research. We didn’t spend tens of thousands of dollars on A/B testing – we didn’t have [that money],” said Alfeiri. “[It was] a lot of observing what was trending and then trusting our guts about what we loved and then sampling the product, understanding that we were on to something and [continually] receiving consumer feedback.”

As the brand thinks about future innovation, Bonde believes there is an opportunity on the packaging side, noting that all of the products in the either have always been packed in plastic or glass. “We really idolize what [olive oil brand] Graza has done with the squeeze bottle – I think there has to be a way to excite and be able to more meaningfully attract consumers,” he said.

But in terms of future growth, Sauz is focused on garnering strong velocities in its core California and Texas regions. While the brand is set to significantly grow its distribution footprint throughout the year, with an estimate of expanding from 300 to about 3,000 doors, Bonde emphasized that moving product off shelves it currently sits on is core to its upcoming growth initiatives.

The team noted that its products currently garner velocities about two to three times greater than the category average and in some retailers, up to five times stronger. Overall, Kraft Heinz still dominates the cooking sauces with over 12.3% market share, according to a recent Mintel report. However, with 90% of American households reporting that pasta sauce is a staple in their kitchen, there is likely an opportunity to capture some share of the market.

“We’re going up against huge conglomerates with tens of millions of dollars in cash on their balance sheet,” Bonde emphasized. “We’re not dancing over here yet, but it’s exciting. We are now in a position to really grow in a calculated and meaningful way, but not only to grow our top-line revenues, or our sales or distribution points, necessarily, [but also] to grow as a brand and drive awareness.”