- Rao’s Homemade started selling jars of its namesake restaurant’s world-famous sauce in 1992.
- Specialty foods company Sovos bought the brand in 2017 and grew sales to more than $600 million.
- On Monday, Sovos announced it would be acquired by Campbell Soup for $2.7 billion.
With just 10 tables — each of which has a standing reservation that gets passed down through generations — dinner at Rao’s Italian restaurant in East Harlem is one of the most exclusive in New York.
The 127-year-old tavern does have sister restaurants (with more tables) in Las Vegas and Los Angeles, but the easiest (and most cost-effective) way to get a taste of the world-famous pasta sauce is in the grocery aisle.
Since 1991, when Rao’s restaurateur and “Goodfellas” actor Frank Pellegrino Sr. began packing and selling his sauce, Rao’s Homemade products have featured whole peeled tomatoes, fresh garlic and onions, and whole leaf basil, simmered in an open kettle.
Sales grew slowly until 2017 when specialty foods company Sovos Brands bought the Rao’s Homemade packaged foods division and turned up the proverbial heat.
“Today Rao’s is more than nine times bigger than when we acquired it in 2017,” Sovos Chief Growth Officer Yuri Hermida told Forbes in July.
“The brand has exceeded $600 million in sales on a 12-month basis, but we firmly believe we can become a billion-dollar brand,” Hermida said .
Hermida added that sauce makes up more than 80% of Sovos’ business, and that one in eight US households buy Rao’s Homemade sauce.
Sovos reported Rao’s brand sales of $580 million in 2022, largely through Costco and Walmart, and sales have already climbed more than 33% in 2023.
On Monday, Sovos announced a $2.7 billion deal with Campbell Soup in which the packaged foods giant would acquire the group, including Rao’s Homemade.
In a press release, Campbell said the deal sets the company up for its goal of a $1 billion sauce business.
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