Categories: Business

Sriracha supply concerns arise as company halts production until after Labor Day

The increasing trend of healthy eating is driving up sales of hot sauce, specifically sriracha sauce. Fans of this spicy condiment may face difficulties in finding it due to an impending shortage. Huy Fong Foods, a prominent sriracha maker based in California, has warned wholesale buyers about the shortage, attributing it to a lack of red jalapeño chili peppers.

According to a letter sent to wholesalers, the company has decided to halt production because the available peppers are not ripe enough, affecting the color of the final product. This is the third consecutive year in which supply disruptions have caused production problems for the leading sriracha maker. Despite repeated attempts, Huy Fong Foods has not provided further comments on the matter.

The company informed wholesalers that production would be on hold until after Labor Day, when the next chili season begins. This shortage is not an isolated incident, as the company has faced challenges meeting demand in the past due to droughts in Mexico that have affected essential pepper crops.

David Tran, the founder of Huy Fong Foods, Inc., established the company in 1980. In the past, shortages of this popular hot sauce have prompted third-party sellers to engage in price gouging on e-commerce platforms like eBay and Amazon. This has resulted in exorbitant prices for single bottles, with some sellers listing them for as much as $26.98 for a 9-ounce bottle.

While some sellers have taken advantage of the shortage to inflate prices, official retailers like Target are still selling the sauce at more reasonable prices. A 17-ounce bottle of sriracha can be purchased on Target’s website for approximately $5, as of the latest information available.

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