Huy Fong Foods, renowned for its popular Sriracha sauce, has informed distributors of a production pause until at least September, reigniting concerns over a shortage of the beloved condiment.
The primary reason cited for the halt in production is the unavailability of suitable red jalapeño chiles required for the sauce. This sauce, known for its sweet and spicy flavor, is widely used in Asian cuisine, particularly in Vietnamese restaurants.
The company representatives declined to elaborate further on the matter. It appears that no other Sriracha producers are currently affected by the chile shortage.
Reasons Behind the Production Halt
Last week, Huy Fong Foods sent a letter to distributors explaining that production was halted due to the chiles being “too green to proceed with production as it is affecting the color of the product.” The pause is expected to extend until after Labor Day, marking the beginning of the next chile season.
Craig Underwood, a former supplier for Huy Fong Foods and now a competitor, speculated that the chiles might have been picked too late in the season. At his farm, Underwood Ranches, chiles are typically harvested from mid-July until the end of October, picked when they turn red after maturing from green to chocolate in color.
Previous Shortages and Challenges
Huy Fong Foods has faced several production limitations in recent years. In 2022, a company representative attributed the challenges to “several spiraling events, including unexpected crop failure from the spring chile harvest.” The impact of a prolonged drought in Mexico affected irrigation and led to low yields.
Last year, the company also announced reduced Sriracha production due to a shortage of raw materials, with uncertainty over supply recovery. Since 2017, when Huy Fong Foods terminated its exclusive relationship with Underwood Ranches after nearly three decades, sourcing adequate red jalapeños has been a persistent challenge.
Stephanie Walker, co-director of the Chile Pepper Institute at New Mexico State University, emphasized the importance of maintaining strong grower relationships, citing the breakdown between Huy Fong Foods and Underwood Ranches as a cautionary example.
Where Sriracha is Produced
Huy Fong Foods manufactures Sriracha at its factory in Irwindale, California, using approximately 100 million pounds of chiles annually. The company was founded in 1975 by David Tran, who fled Vietnam and settled in Los Angeles, where he began producing his version of Sriracha.
Alternatives and Market Responses
While Huy Fong Foods faces production challenges, alternative Sriracha options have emerged in recent years. Craig Underwood launched his own Sriracha sauce in 2020, later rebranded as Sriracha Dragon sauce, experiencing increased demand last year.
Tabasco, another notable producer, utilizes red jalapeños from the United States and Latin America in its Sriracha. The company even established a dedicated website, srirachashortage.com, to manage heightened consumer demand.
This pause in production underscores ongoing challenges within the Sriracha market, highlighting the complexities of sourcing essential ingredients and maintaining supply chains for beloved consumer products.
