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IRWINDALE, CA. - AUGUST 22, 2014: CEO David Tran, left, has his picture taken with Maggie Guzman, right, as 300 sriracha fans tour Huy Fong Foods in Irwindale on August 22, 2014.
As the sole supplier of the juicy red jalapeños for sriracha, Huy Fong Foods’ iconic fiery-red chili-garlic sauce, Underwood’s empire of peppers had spread from a 400-acre family farm in the ...
Huy Fong Foods was ordered to pay Underwood Ranches $23.3 million in compensation for damages. [26] [27] [29] In June 2022, Huy Fong Foods temporarily halted the production of the chili sauce. This decision was prompted by a severe shortage of chili peppers caused by a drought in Mexico that affected the quality of the peppers.
However, the jury also decided that Huy Fong's claim of overpayment was valid, so $1.46 million was deducted from the damages. [29] In June 2022, Huy Fong Foods temporarily halted the production of the chili sauce. This decision was prompted by a severe shortage of chili peppers caused by a drought in Mexico that affected the quality of the ...
Underwood said Huy Fong Foods has struggled to find a consistent and reliable supplier for its red peppers since their partnership ended. "Creating a supply chain like that is far more complicated ...
In 2022, Huy Fong Foods Sriracha sauce temporarily halted production due to a shortage of chili peppers arising from a business dispute with Underwood Ranches, which claims Huy Fong foods misled Underwood Ranches to invest in its expansion, and then breached its oral contract to purchase at their originally agreed upon price point.
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As of Mid-April 2007, Huy Fong announced publicly that the company is temporarily out-of-stock on ALL products and NOT taking any orders due to the shortage of chili peppers. Few local distributors, knowing that the company is still open for business even though they claimed they have stopped production, find this story very hard to swallow.