A sauceless summer might be on the horizon for fans of the beloved Sriracha sauce as Huy Fong Foods, the maker of the iconic rooster-adorned green-capped bottles, has announced a halt in production until after Labor Day. This decision has sparked concerns of another shortage in the market.
The California-based company attributed the production setback to issues with the red jalapeño chile peppers that are essential for creating the sauce’s signature spicy-sweet flavor profile. According to Huy Fong Foods, the peppers currently available are not red enough, impacting the color and quality of the final product.
In a letter addressed to wholesale buyers, the company expressed regret over the situation and informed them of the temporary production suspension until the start of the next chili season after Labor Day. This move will affect not only the production of Sriracha sauce but also other popular products like chili garlic sauce and Sambal Oelek.
Previous shortages of red jalapeños had already caused difficulties in sourcing Huy Fong Food’s Sriracha sauce, and the current issue with the peppers raises concerns about potential future shortages in the market. While other Sriracha producers have reported no problems with their red jalapeño supply, it appears that Huy Fong Foods’ sourcing challenges might be linked to their relationships with jalapeño growers in Mexico.
Stephanie Walker, a professor and vegetable specialist at New Mexico State University, suggested that the company’s attempts to engage new growers for a stable supply chain have not been entirely successful. This could be a contributing factor to the current production woes faced by Huy Fong Foods.
The root of the Sriracha problem can be traced back to a fallout with its former supplier, Underwood Ranches. The longstanding partnership between the two companies ended in 2017 due to financial disputes, leading to a legal battle that concluded with Underwood Ranches being awarded $23.3 million for breach of contract and fraud by Huy Fong Foods. Subsequently, Underwood Ranches ventured into producing a competing brand of Sriracha sauce.
Chile pepper production is a labor-intensive process, with Huy Fong Foods requiring approximately 50,000 tons of chile peppers annually for its hot sauces. The challenges of growing jalapeños, especially in large quantities, highlight the complexities of the agricultural supply chain and the importance of stable relationships with growers.
