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Texan David Pace had been selling 58 different varieties of jam, jellies, and sauces from the back of his liquor store in the 1940s when he came up with a recipe for a thick and spicy tomato-based sauce he dubbed "Picante." When sales of David's new sauce took off, he concentrated all his efforts on marketing his all-natural, preservative-free product, and designed the sauces famous hourglass-shaped jar (to keep it from tipping over). Now America's number one Mexican hot sauce brand, Pace Foods, makes it known that it still uses only fresh jalapeno peppers in the sauces, rather than the brined, less flavorful jalapenos—like those canned nacho slices. Each year all the fresh jalapenos used by the company weigh in at around 30 million pounds, and the nation gobbles up around 120 million pounds of the spicy sauces. Here's a simple recipe to make a kitchen copy of the medium heat-level Pace Picante Sauce, which was the first variety David created. The mild and hot versions were added in 1981, and you'll find clones for those at the bottom of the recipe in Tidbits.
Source: Even More Top Secret Recipes by Todd Wilbur.