The company was founded in 1947 by David Pace when he developed a recipe for a salsa he called "Picante sauce" (picante means 'spicy' in Spanish), which was "made with the freshest ingredients, harvested and hand-selected in peak season to achieve the best flavor and quality".

During World War II pilot training school brought him to San Antonio, Texas, where he returned after his discharge in 1945 and began a career in the food industry.

All of these products were made, packed and shipped out of a small space in the back of a liquor store that he and his wife, Margaret, rented.

As demand grew, Pace dropped the rest of the company's lines and focused on Picante sauce.

[citation needed] Using a $150,000 loan from Margaret's mother, the couple expanded and built their production facility in 1951.

Later, the company began following the "jalapeño trail", buying from different regions according to the harvest season, before developing their own pepper seeds.

The specialty salsas include:[2] New for 2014: Pace Picante Sauce and Salsas took top honors for their categories in Chile Pepper magazine's 2009 Fiery Food Challenge and the 2009 Fiery Foods & BBQ Show's Scovie Awards Competition.