Huy Fong Foods, the manufacturer of Sriracha chili sauce, has been forced to halt production due to a shortage of hot peppers caused by an extreme climate in Mexico where the peppers are grown. The company has determined that the supply of chilis is not suitable for production as it is affecting the color of the product. The drought in Mexico has resulted in a lack of red winter jalapeños, a key ingredient in the Sriracha recipe, causing concerns that there may be a flavorless summer for consumers.
The impact of the supply chain issues is being felt by food distributors like Nassau Candy in NY, who have seen their supply of Huy Fong Foods sriracha diminish significantly. While competing brands are performing well, they could also face a shortage as a result of continued droughts. The difficulty in finding a suitable substitute for the red winter jalapeños is leading to challenges in maintaining the unique taste and flavor profile of Sriracha. Consumers have a preference for the traditional ingredients used by Huy Fong Foods, making it difficult for other companies to replicate the popular sauce.
The climate challenges in Mexico are causing significant disruptions in the production of jalapeños, impacting companies that rely on these peppers for their products. Some experts attribute the extreme weather events to climate change, highlighting the far-reaching consequences of environmental factors on the food supply chain. A lack of experience in cultivating jalapeños can further exacerbate the issues faced by producers like Huy Fong Foods, where the success of the sauce is tied to the specific type of pepper used in the recipe.
Huy Fong Foods’ previous supplier of red winter jalapeños, Underwood Ranches in California, ended their partnership in 2017, leading to a shift in sourcing peppers to Mexico. The challenges in finding a reliable supplier of quality peppers have been a recurring issue for the company, with previous shortages attributed to various factors such as inclement weather. The scarcity of Sriracha in the market has caused panic among consumers, leading to price spikes and hoarding of the product in some cases. Despite efforts to address the supply chain hurdles, the company continues to face inventory challenges that impact its ability to meet consumer demand for the popular chili sauce.
