The breakup that caused the sriracha shortage: How a 28-year partnership between Huy Fong Foods and its sole pepper supplier collapsed
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Summary
This article tells the story of the dramatic breakup between Huy Fong Foods (maker of sriracha) and its longtime sole pepper supplier, Underwood Ranches. After a 28-year partnership that built the sriracha empire, a dispute over a $1.5 million pepper payment in 2016 led to a bitter legal battle and the end of their relationship. The fallout caused a massive sriracha shortage that lasted years, as Huy Fong struggled to find new pepper suppliers while Underwood Ranches was forced to pivot its entire business. The article explores the personal and business dynamics between David Tran (Huy Fong's founder) and Craig Underwood, the cultural significance of sriracha as an American icon, and the lasting consequences of their epic falling out.
Key quotes
· 3 pulledOn the day that the foundation of Craig Underwood's business collapsed, he was on vacation—at the beach with his wife, daughters, and grandchildren in Hawaii.
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.
After 28 years, it fell apart in one day.
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