Business Wars The Great Sriracha Feud | Showdown | 2
95 snips
Sep 17, 2025 A fierce rivalry unfolds as Huy Fong Foods faces supply issues, forcing them to grapple with dwindling chili pepper resources. Underwood Ranches, unable to recover losses from a canceled contract, devises a plan to create their own Sriracha. Legal battles heat up as both sides navigate contract disputes, revealing the intense strain on their once-collaborative relationship. Supply chain challenges and evolving consumer loyalty add spice to the mix, making this a deliciously dramatic tale of business and betrayal.
AI Snips
Chapters
Transcript
Episode notes
Decades-Long Supplier Relationship Collapses
- Craig Underwood drove a decades-long supply deal to grow most of Huy Fong's jalapeños and relied on advance guarantees.
- When Huy Fong abruptly shifted terms in 2016, Underwood walked out, fearing his farm would fail under the new price.
Build Supplier Resilience Before Growth
- Maintain reliable support systems and infrastructure before scaling a business to avoid supply shocks.
- Prioritize trusted supplier relationships and contingency plans to prevent single-point failures.
Farm Nears Collapse After Contract Break
- Underwood faced immediate financial shock after refusing the new contract and prepared to lay off nearly half his staff.
- He scrambled to sublease land and plant other crops to survive while considering legal action.