This article discusses the history of Sriracha hot sauce, its relationship with pepper supplier Underwood Ranches, and the recent shortage of the sauce. The article highlights the legal disputes between Sriracha maker Huey Fung Foods and Underwood Ranches, which led to the termination of their partnership. It also touches on factors like weather conditions and supply chain issues contributing to the Sriracha shortage. Despite these challenges, the demand for Sriracha continues to grow, and companies are working to address supply-related problems.
Here are the key facts extracted from the text:
1. For 28 years, one of the most recognizable hot sauces in America sourced its peppers from Underwood Ranches.
2. Underwood supplied sriracha's primary ingredient, helping turn it into a multi-million-dollar international brand.
3. In 2015, Underwood Ranches delivered 100 million pounds of jalapenos for sriracha production.
4. Huey Fung Foods, the maker of sriracha, controlled a 6.3 percent share of the hot sauce market in 2020.
5. Huey Fung Foods' revenue in 2020 was nearly $131 million.
6. The relationship between Underwood Ranches and Huey Fung Foods ended in 2017.
7. Sriracha prices have skyrocketed, with limited availability due to third-party sellers.
8. Supply chain and weather-related issues have contributed to the shortage of Sriracha hot sauce.
9. The California drought was cited as a reason for the pepper shortage, but Underwood Ranches disputes this.
10. There was a legal battle between Underwood Ranches and Huey Fung Foods over a breached agreement.
11. Underwood Ranches won a $23 million judgment in a legal dispute with Huey Fung Foods.
12. Underwood Ranches diversified its crop production and started making its own Sriracha sauce.
13. Sriracha is not a trademark, allowing other brands to create similar chili pepper sauces.
14. Domestic hot sauce industry revenue is expected to continue growing.
15. Agricultural shocks and climate change are impacting food supply chains.
These facts provide an overview of the Sriracha hot sauce industry, its challenges, and the legal dispute between Underwood Ranches and Huey Fung Foods.