Did You Know: XO Sauce Doesn’t Actually Contain Any XO

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If you've ever sat down for yum cha or dim sum and spotted a small jar of chunky, aromatic sauce on the table, chances are it was XO sauce

With a name like that, you might assume it's loaded with XO cognac, the same type of aged brandy you'd find in a pricey bottle behind the bar.

But the truth is, the sauce has zero alcohol in it.

So why is it called "XO" if there's no alcohol inside?

The label comes from the liquor world, where "XO" stands for Extra Old — a legit grade for cognac aged at least six years.

Back in the 1980s, Hong Kong chefs started using "XO" in the name to make the sauce sound premium and indulgent. A bit like calling something "gold label" or "signature edition".

And that's how "XO sauce" was born.

What's actually inside XO sauce?

Instead of brandy, XO sauce is packed with dried seafood like scallops and shrimp, along with cured ham, chillies, garlic, and oil.

The result is a savoury, umami-rich paste that instantly boosts the flavour of noodles, rice, and stir-fries.

In Hong Kong, it's a must-have in high-end Cantonese kitchens; in Malaysia, you'll spot it at Chinese restaurants, specialty grocers, and even some local supermarkets.

It started as a hotel kitchen invention

XO sauce is believed to have been created by chefs at The Peninsula Hotel in Hong Kong during the 1980s, though some credit other luxury hotels around the same time.

Originally served as a high-end condiment for wealthy diners, it quickly won over home cooks.

Today, it's so popular that mass-market brands like Lee Kum Kee sell bottled versions for everyday cooking.

Despite having no link to cognac, "XO" became part of its identity, and most people don't question it

If anything, the name helps sell the sauce as something a little extra, a little indulgent… even if you're just eating it with instant noodles at 2am.