Huy Fong Foods’ sriracha faces another potential shortage
By Carl Samson
12 days ago
Customers could face another sriracha shortage as Huy Fong Foods announces a halt in production until after Labor Day, citing a lack of usable chili peppers.
Key points:
- Huy Fong Foods temporarily stopped production of its sriracha sauce due to red jalapeno chili peppers being “too green,” according to reports.
- After a lengthy legal battle, the company’s former sole supplier, Underwood Ranches, now produces its own rival sriracha called Dragon Sauce.
- The shortage highlights challenges in the industry, including the need for reliable growers and impact of climate change on pepper production.
The details:
- “After reevaluating our supply of chili, we have determined that it is too green to proceed with production as it is affecting the color of the product,” the Irwindale-based company told wholesale buyers, as per USA Today. Aside from sriracha, the shortage may affect the availability of their chili garlic sauce and sambal oelek.
- The company said production will resume after Labor Day, when the next chili season starts. Previous shortages have made sriracha sauce hard to find, with some orders being canceled.
- The shortages began in mid-2022, years after Huy Fong ended its partnership with Underwood Ranches, its sole supplier of 28 years. After a financial dispute and a lengthy court battle, Huy Fong was found to have breached its contract and committed fraud, leading to a $23.3 million award to Underwood.
- Huy Fong’s struggles with pepper supply highlight challenges in the industry, including the need for reliable growers and the impact of climate change. For many, the impact of the last shortage remained felt until last year.
- Fellow sriracha makers have not reported similar issues. Underwood’s Dragon Sauce, for its part, has seen some early success.
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