Trademark questions: Tabasco?

Tabasco is a state in Mexico.  It is also a pepper cultivated in that state.  How on earth can there be a trademark on the word Tabasco?  I can't even see a trademark on the term Tabasco Sauce because it is the name of an ingredient.  Is anyone else wildly confused by this?  Imagine someone getting a trademark on the term Ghost Pepper.  Wendy's, Popeye, and all the others jumping the band wagon would be screwed.

Seriously, how do things like this happen?  It is the name of a pepper.
 
It used to be easier to do things like that, and large companies with power and influence could grease the right wheels and pull it off.

much harder these days - the "try me" brand failed to trademark "try me" if I recall correctly - they're the ones who make Tiger Sauce, Yucatan Sunshine and others.

If challenged, Tabasco might well lose....but then they could also afford to throw an army of attorneys at you.

I remember reading about this sort of thing in my business law classes - a lot of things were trademarked way back when that would never be allowed today.
 
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