Here’s a revised version:
There is currently a scarcity of the popular Huy Fong Foods’ Sriracha sauce, causing difficulties for consumers in finding it. The company has been facing a shortage of chile pepper supply for several years, which has contributed to this issue. As a result, fans of the beloved red hot sauce packaged in green-capped bottles are increasingly frustrated by its absence from store shelves. To make matters worse, third-party resellers on platforms like Amazon, eBay, and Walmart are taking advantage of the situation by significantly increasing prices. In fact, some listings are now offering Huy Fong Sriracha for shocking amounts, while many others are completely sold out.
Why is there a shortage of Huy Fong Sriracha?
Huy Fong Foods, the manufacturer of the beloved Sriracha hot sauce, is currently facing a shortage of its product. The scarcity of Huy Fong Sriracha can be attributed to ongoing difficulties in sourcing an adequate supply of chile peppers, which have persisted for several years. This scarcity has led to a significant impact on the availability of the sauce, leaving store shelves empty and frustrating fans of the brand.
The shortage has also given rise to inflated prices on third-party reselling platforms such as eBay, where a single 17-ounce bottle of Huy Fong Sriracha can range from around $20 to an astonishing $150. In contrast, other hot sauce brands do not appear to be experiencing the same level of supply issues.
Huy Fong Foods acknowledges the ongoing shortage and has cited limited availability of raw materials as the main cause. Last year, the company had to temporarily suspend sales of Sriracha and other popular products like Chili Garlic and Sambal Oelek due to similar scarcity issues. While limited production has recently resumed, the company has not disclosed specific details regarding the extent of the increase or provided an estimate for when suppliers will be able to deliver an adequate quantity of peppers.
Since Huy Fong Foods does not directly sell to retail or market levels, it is unable to predict when the product will be restocked on shelves or which retailers currently have the sauce in stock. The company expresses gratitude for the patience and understanding of customers during this unprecedented inventory shortage.
The shortage of Huy Fong Sriracha can be partly attributed to climate change, according to experts. The company sources all of its chile peppers from Mexico and the U.S. Southwest, where weather shifts and extreme drought have been observed. This has resulted in a scarcity of the primary ingredient, the red jalapeño chile pepper, which is grown under irrigation using water from the Colorado River.
The Colorado River has experienced historically low levels in recent years due to insufficient rainfall and reduced run-off from snowpack. As a result, the availability of water for irrigation has been significantly impacted. These adverse climate conditions have made it challenging for Huy Fong to obtain an adequate supply of chile peppers.
While climate change plays a role in the shortage, experts suggest that it is not the sole cause. Stephanie Walker, an extension vegetable specialist and professor at New Mexico State University, speculates that Huy Fong may face difficulties due to limited supplier options and is potentially seeking to establish relationships with new growers. Building partnerships with additional farmers could help mitigate the impact of the chile pepper shortage and enhance the company’s supply chain resilience.
Huy Fong Foods, founded by David Tran several decades ago, currently obtains its chile peppers from farms located in California, New Mexico, and Mexico. For nearly 30 years, Huy Fong exclusively relied on Underwood Ranches, a California-based supplier, for its chile pepper needs. However, their partnership dissolved in 2017 due to a financial disagreement. Subsequently, in 2019, a jury ruled that Huy Fong had breached its contract with Underwood Ranches and had also committed fraud, resulting in a $23.3 million award for Underwood.
Since the termination of its relationship with Underwood Ranches, Huy Fong has diversified its supplier base and now sources chile peppers from various farms across the mentioned regions. Establishing connections with multiple growers helps mitigate the risks associated with relying solely on one supplier and enhances the company’s ability to secure a consistent supply of chile peppers.
It is worth noting that this year’s chile growth season in the region is expected to be favorable, which could potentially alleviate the current scarcity issues faced by Huy Fong.
In a phone interview, Craig Underwood, the owner of Underwood Ranches, expressed disagreement with the explanations of drought and climate change as the sole reasons for Huy Fong’s Sriracha shortage. Underwood argued that David Tran, the founder of Huy Fong, had not adequately rebuilt his supply chain.
According to Underwood, there has been a consistent supply of jalapeño peppers from Mexico. Underwood Ranches, which now produces its own brand of Sriracha, has also increased its production of red jalapeño peppers this year, partially in response to the shortage of Huy Fong’s product. Underwood noted a significant increase in demand for their own Sriracha as a result.
The scarcity of Huy Fong Sriracha has led to skyrocketing prices for the remaining available bottles. Many locations are completely sold out, creating an opportunity for resellers to list the sought-after product at inflated prices due to its rarity.
Consumer behavior, specifically hoarding, is another market force contributing to the scarcity of Huy Fong Sriracha. The fear of losing access to the desired product prompts people to purchase more than they typically would, similar to the panic buying of toilet paper during the early stages of the COVID-19 pandemic. This increased demand exacerbates the situation by adding pressure on the already limited supply of the sauce, resulting in higher prices.
While Huy Fong Sriracha is experiencing shortages, there are numerous other hot sauces, including Sriracha-style products, that remain readily available at reasonable prices. For instance, Tabasco has ensured a smooth supply of its Sriracha brand and has even created a webpage to help customers locate nearby stores that carry its product. The company states that it has been able to scale up production to meet the surge in demand for its sauce.
Experts offer several possible explanations for the contrasting availability of other hot sauces. It is speculated that Huy Fong may have issues with its current chile suppliers, while other brands might utilize different pepper varieties and source from multiple farms. Additionally, some companies may have the flexibility to adjust their recipes, although perfecting new sauces or finding alternative pepper variants can be a time-consuming process that spans several years.
To address the challenges posed by extreme weather conditions, such as drought and heat, experts suggest options like growing crops in less affected areas or developing new pepper variants that are more resilient and require less water. However, these strategies would necessitate significant time and effort to implement effectively.