The founder of Yoshida’s Original Gourmet sauce talks about how he started the company and why he bought it from Heinz.
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I was originally a karate instructor. I was coming in to teach at the MAC Club, at Portland State and PCC, and I was also the lead defensive tactics instructor for the Oregon police academy. It was a great job. There is only one job in the world where you can beat up a cop every day and they pay you to do it – great job.
In 1982 there was a severe recession in the United States. Oregon was the worst state. My teaching business went down.
People gave me presents for Christmas, and you usually give something back, right? But in 1982, 1983, we were broke. So what should we do to return Christmas presents? My wife, Linda, said, “Why don’t you make your mother’s secret steak sauce? Do it and give it away.”
We give it and people want it. After Christmas they come back and say, “Sensei, that sauce was great.” They say, “Can we have more?” I say, “Wait until next year at Christmas.” They say, “No, no, no, no, Sensei, we can’t wait. I have to pay you.”
I never even thought about it, but people wanted to pay. We started and people kept coming back. Every time they come back, the price goes up. This is America, right?
My wife said one day, “Honey, I think it could be a business.”
I was not a businessman at all at that time. I was just a karate guy, teaching people to beat people. I knew nothing about the retail business, nothing. Just totally amateurish, right? And I had a hard time. I almost went bankrupt four times from my sauce.
In 1983 Costco opened its second store. Number one is Seattle, number two is right here [in Portland]. People said, “You should check it out,” so I went to the airport. So big and so cheap. I said, “Wow, those guys are doing something right.” I went to Seattle to interview with them. Then they took my product right away. I didn’t expect them to go up so much, but Costco has such a nice philosophy. They always pay vendors on time. Always, even if they are having a hard time, they will pay a seller on time.
One day, my wife and I decided to cook at a Costco. At first they don’t want to take a sample. I’m wearing a cowboy hat with a kimono. I want to do something stupid. I want to do stupid, crazy things, make a lot of noise, a lot of jokes. And once a person tries a sample, she likes it. Seventy percent of people who try the sample, love it, buy it. That was amazing.
The sauce has a Japanese name and tastes Japanese and the owners are Japanese, but we are never in the Asian section. Why not there? Because I fought like crazy. One chain placed my sauce next to the Kikkoman in the Asian section; I interrupted him. They were really upset. I said, “Promise you’ll put my sauce next to the ketchup and barbecue sauce. I want to sell my sauce to Americans.” At one time, we had 26% of sales in the teriyaki category in the United States.
Then Heinz enters. Heinz wants to buy our company. I said, “No, it’s not for sale.” I said, ‘How about as a distributor, right? Maybe you have 130 salespeople. I only have three, including me. You can triple the company.”
They paid me good money when they did that. We continued to produce it for them to sell. That was 24 years ago. Then the brand began to decline, sales are falling. The CEO of Heinz left and they bought us. There was an exclusive contract, I couldn’t even touch it, so I was ready to give up.
And then last October, my grandson number two – very smart kid, natural leader – and he says, “Dad, I don’t mind coming to work for you one day.” I said, “What?” But then I thought, “I have to keep my name.”
I started talking to Heinz, but we had gotten off. We had lost Sam’s Club and Walmart and Costco, and retail sales were almost nil. So, at the age of 75, I just had to get back into action, because of my grandson. So I bought the brand again.
Ten years from now, my grandson will be president with five years of training. It is not a matter of chance. Everything was meant to be. And so every day is exciting, really exciting. I have fallen in love with life.
I was excommunicated from my family in Japan because I came to the United States, 55 years ago, I came to the enemy country. They cut me off completely. I had no choice but to stay in this place here; I have to do it. I never thought, “I want to be rich.” I just have to get to it.
When people saw me deciding to buy from Heinz at the age of 75, I think they thought I was stupid. Yeah, I hope they think I’m stupid. I have a plan for everything. My breath is positive revenge. This is continuing my life, helping, doing.
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