Stories

June 23, 2024

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Last year, we had the pleasure of sharing the inspiring story of Taufeek Shah and Lola’s Fine Hot Sauce in the article “The Success Behind The First-Ever National Asian-Filipino-Owned Hot Sauce Brand,” delving into the brand’s multicultural roots and its recipe for success. With a unique blend of Filipino and Pakistani flavors, Lola’s Fine Hot Sauce, founded by Taufeek and his mother, has captured the hearts and taste buds of many across the United States.

Since then, Lola’s Fine Hot Sauce has achieved remarkable growth. From expanding its product line to securing a significant distribution agreement with Walmart, the brand has continued to build on its success.

We had the honor of interviewing their CEO and founder Taufeek Shah once again to discuss the latest updates and achievements of Lola’s Fine Hot Sauce. Join us and get inspired.

I remember when it was just my mom and I selling at farmers markets and now to see her recipes in every Walmart store in America is truly the American Dream.

Taufeek Shah, CEO and Founder of Lola’s Fine Hot Sauce

WHAT’S NEW WITH LOLA’S FINE HOT SAUCE

Since last year, Lola’s Fine Hot Sauce has achieved several significant milestones. We’ve expanded our product line by releasing Lola’s Fine Spicy Ketchup and AE Dairy Spicy Party Dip and introduced convenient mini bottles. Our distribution network has grown substantially, highlighted by a major partnership with Walmart: bringing our sauces to over 4,000 stores nationwide.

Product

We’ve also partnered with local farmers, packaging companies, and local supply chains to make sure our products are proudly made in America featuring fresh real all-natural ingredients.  Additionally, we’ve received numerous awards like the Best for Your Pantry Award by Better Homes and Gardens, awards in supplier diversity, and positive reviews, solidifying our reputation for quality and flavor. Overall, our growth and achievements reflect our commitment to bringing not only the best hot sauce but also our family’s recipe hot sauce to our customers while making a positive impact on the community.

HOW IT FEELS TO NOW BE AVAILABLE IN OVER 4000 WALMART STORES

It feels incredibly rewarding and humbling to see our family recipe hot sauces on the shelves of Walmart stores across the country! I remember when it was just my mom and I selling at farmers markets and now to see her recipes in every Walmart store in America is truly the American Dream.  This milestone represents years of hard work and dedication from our entire team, and it’s amazing to see our brand reach such a wide audience.

OVERCOMING PRODUCTION CHALLENGES

One of the major challenges was scaling up production to meet the demand of over 4,000 stores without compromising on quality. We had to streamline our processes, invest in new equipment, partners, and logistics, and ensure our supply chain could handle the increased volume. Great communication and great relationships with our current partners and new partners helped create new jobs within our community and also helped us understand our sauce better. Being all-natural and the amount of pepper/garlic and more that we brought in truly created an all-ships-rise in collaboration.

KEY LEARNINGS ON LARGE-SCALE PRODUCTION AND DISTRIBUTION

We’ve learned the importance of robust logistics and supply chain management. Ensuring that we have a reliable source of ingredients and efficient distribution channels is crucial. We also realized the value of maintaining flexibility in our production processes to adapt to unexpected changes in demand or supply. Additionally, building strong relationships with our retail partners has been essential in facilitating smooth operations.

FEEDBACK FROM THE CUSTOMERS

The feedback has been overwhelmingly positive. Customers love the convenience of our mini bottles, which are perfect for on-the-go use and trying out different flavors without committing to a full-sized bottle. Our expanded product line, including unique flavors like our Green Jalapeno & Serrano along with our coveted Original, has been well-received for its unique tastes with rich garlic nodes and just the right amount of heat and flavor.

LOOKING AHEAD

In the next few years, we aim to expand our product line with new and innovative flavors as well as continue to drive our signature original in both food service and retail. We also have a hot honey launching in the next few days which features a delicious flavor profile that matches our hot sauce with an all-natural honey.

We’re also looking to enter new international markets and increase our presence in existing ones. Another goal is to enhance our online shopping experience, increase direct-to-consumer sales, and expand internationally.

ADVICE FOR OTHER MINORITY-OWNED BUSINESSES

Stay true to your vision and values. Build a strong, dedicated team that believes in your mission. Networking and building relationships within the industry are crucial. Don’t be afraid to seek mentorship. But most importantly hustle – grinding hard and outworking everyone with the belief in your brand or product will get you to where you want to be.

CONCLUSION

We’re excited about the future of Lola’s Fine Hot Sauce and grateful for the support we’ve received from our customers and partners. We’re committed to continuing our journey of delivering high-quality, flavorful family recipe hot sauces while making a positive impact on our community and supplier diversity proudly made in America while staying true to our Filipino/Pakistani roots.

CONNECT WITH LOLA’S FINE HOT SAUCE

Website: lolasfinehotsauce.com

Instagram: @lolasfinehotsauce

TikTok: @lolasfinehotsauce

Facebook: Lola’s Fine Hot Sauce

X: @lolafinehotsauce

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Pauline (left) and Olivia (right)

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Roadshow Or Small Rotation

We met our buyer at Expo West (Think Super Bowl for the Food & Beverage industry where retailers and manufacturers meet up. Super worth doing if you are in CPG. We even landed our 1st TV interview).

After Expo West, we sent more samples to the office and began negotiations for placement. We were offered two ways of being at Costco:

Roadshow

  • 4 days of selling on consignment. We could control costs by using our own people and decide the volume of product we wanted to bring in.
  • Typically, this is how small brands enter Costco. If it does well, you are offered a rotation. If you don’t do well, then it’s really hard to get into the regular set.

Small Rotation

  • We started with a number of stores and the item is part of the regular set.
  • This is harder to secure because Costco is paying for the inventory and the buyer has to believe in your product.

In both situations, it is critical that Twrl Milk Tea sells well and ideally sells out. Why is this important?

It proves to the Costco Buyer that there is a market for our better-for-you plant-based milk teas. More importantly, companies owned by Asian American small business owners like ours are proven to be great partners worth investing time in and onboarding.

Reasons For Opting for Small Rotation

After a few weeks of due diligence on our end, we decided to go with a small rotation. Our reasons were simple:

  • Our manufacturer could produce the volumes needed and in the time we needed. Not always the case in this crazy supply chain. We are made in the USA so it makes a huge difference in our speed for delivery.
  • We could handle the financial obligations to fund the inventory. It’s a lot of money upfront so it’s not a light decision for a smaller company like ours. And, there is still a chance you can be sitting on inventory if it does not sell through.
  • We are committed to Costco and wanted to be part of the regular set and did not want to take the chance that with Roadshow which is only 4 days could be a bust due to so many variables that we may not be able to control.
  • We love Costco ourselves and shop there regularly so we saw our consumers there! Did you know the typical Costco shopper is 35-44 years old, an Asian female making $125,000 and the average trip is $114?!

Roadshow which is only 4 days could be a bust due to so many variables that we may not be able to control.

-Olivia Chen

Decisions, Decisions, Decisions

What flavor to sell?

Out of our 3 flavors, we selected Taiwan-Style Black Milk Tea to launch because it’s one of our best sellers and our Taiwan-Style Black Milk Tea flavor is really unique. Our single-origin loose-leaf black tea is a one-of-a-kind varietal, sourced from a small multi-generational family farm on a misty slope, fed by sweet mountain spring water.

Our tea flavor, aroma, and health benefits are un-parallel to anything on the market. We use pea milk and lightly sweetened our teas with organic agave so our tea flavors really come through. Only 45 calories & 6g of sugar per can.

What would the packaging look like?

Packaging design and sourcing begin for Costco. Luckily for us, Pauline Ang is a seasoned graphic design guru (with 15+ years in the food and beverage packaging for Fortune 500 companies) and designs all our packaging in-house so we could save costs and time here!

How to onboard?

Mountains of paperwork for our two-person team begin. We didn’t use a broker and did everything ourselves. Yes, a broker would have been so incredibly helpful to answer all the questions that we didn’t know the answers to and definitely would have saved us some headaches.

Big Takeaways

  • Don’t be afraid to chase the account you want to be in. Don’t be shy about sharing your vision of where you see the company. Special thanks to Ryan Sung of Honolulu Cookie Company and Vincent Kitirattragarn of Dang Foods for talking to us about their journey with Costco and encouraging us to go for it.
  • It can be done without a broker but not without headaches and some huge learning curves and we did make some mistakes along the way.
  • Have an advocate. We have been super lucky that our buyer has been so incredible to work with and it’s important to have such an advocate in the company. Cannot over-emphasize this enough!
  • Your team matters. Grateful to share this journey with Pauline Ang who is such an amazing friend and business partner. We are two moms that love Milk Tea and simply wanted to make milk tea —a quintessential Asian drink that we love—even better.

Don’t be shy about sharing your vision of where you see the company.

-Olivia chen

Connect with Olivia and Pauline

Your support would mean the world to our small business and the small family farms that use sustainable practices for a tea that’s better for you, and better for the planet. Follow our journey: Instagram, Facebook, TikTok, Twitter

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