I'd also decided that it must be hotpepper, for the same reasons - but was reluctant to put it in as the only dictionary which even mentions it as a spice has it as two words, not one. Even Googling "hotpepper" as one word only brings up two-word hits.
Thanks for this, everyone - it's very reassuring to know that it isn't just me!
Is there any way we can complain to The Times about this one?