Stirling-based butchers Rendalls signed the deal as part of a bid to promote Buckfast Tonic Wine through food.
The sauce is the latest creation from brothers Jason, 37, and Garry Rendall, 34, who are originally from Orkney.
The pair have previously made award-winning pies, haggis, lorne sausage and even Buckfast bacon, using the popular tonic wine.
Jason, who explained that they originally started working with J Chandler after creating their first Buckfast pie, said: "After seeing some other well-known drinks brands make BBQ sauces with their products, we thought that Buckfast, which has quite a sweet taste when cooking with it, would be perfect for us to make our own sauce with.
"We've been working on it for about two years and it's finally come together now, it's slightly sweet and has a lovely spicy aftertaste. We made about 13,000 bottles for our first run and they are nearly all gone already."
The new sauce, which Jason describes as great for both marinading and dipping, is priced at £2.99 for 250ml and will be available to buy from the 1st of September from the Rendalls' website.
Buckfast marketing manager Stewart Wilson said that the uptake on the new sauce has been "absolutely phenomenal" with a theme park having already ordered some of the bottles for their burger bars and one restaurant even "re-doing their menu" to use it for one of their starters.
He said: "We are pretty excited to be entering the food market for the first time and we are quite keen to show how versatile our drink can be.
"We'd previously developed some recipes with a Michelin-star chef for our website a couple of years ago and on the back of that there's a number of restaurants and cafés up and down the country that started introducing Buckfast within their own recipes.
"So, we believe that by getting involved in the food sector with Rendalls we can introduce the brand to newer consumers in new ways."
Mr Wilson said that the firm were also picking up a lot of business in the on-trade with bartenders and mixologists experimenting with Buckfast in their cocktails.
And, after both Lewis Capaldi and Dave Grohl of the Foo Fighters were recently filmed enjoying Buckfast, he joked that the tonic wine now seems to be the "drink of choice" within the music industry.