Heated Issue in Sriracha Supply Chain

Heated Issue in Sriracha Supply Chain

August 19, 2019
Lisa M. Spencer

Tensions now run hot between Sriracha producer Huy Fong Foods and Underwood Ranches, the largest domestic source of the fresh jalapenos that are the main ingredient in the Southeast Asian sauce.

In the past, Underwood produced 100 million pounds of peppers per year on California farmland for Huy Fong.

The model worked this way: Underwood estimated the cost of the upcoming year’s harvest, Huy Fong Foods fronted the money and assumed the risk, and at the end of each year the two companies settled up.

After 28 years of business and friendship, issues arose and the relationship deteriorated.  Fong sued Underwood for not repaying a $1.5 million overpayment for the 2016 harvest season.  While the jury awarded to Fong, it concurrently gave Underwood Ranches $10 million in punitive damages and $14.8 million for contracts lost over the next two years when Huy Fong sourced its peppers elsewhere. 

Video Spotlight:

This post is based on the Modern Farmer article, Sriracha and Its Pepper Farmer Are Mad at Each Other, by Dan Nosowitz, July 23, 2019; the San Gabriel Valley Tribune article,  Continue reading →

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Pour a Foamy Mug of Rejected Cereal

Pour a Foamy Mug of Rejected Cereal

July 6, 2019
Lisa M. Spencer

Kellogg’s in Manchester, England has teamed up with UK brewery, Seven Bro7thers, to put new “pop” in the beer business.

The two companies are making beer using Rice Krispies and Coco Pops not perfect enough to make it into the cereal box.

As part of its sustainability efforts, Kellogg’s is repurposing misfit rice-based flakes that are too large, too small, overcooked, uncoated, or discolored and that would, in the past, have been used as animal feed.  The cereals replace malted barley in beer recipes.

These beers follow on the heels of a similar partnership which used rejected Corn Flakes to create “Throw Away IPA” in 2018.

Video Spotlight: Kellogg’s is making beer using discarded corn flakes

This post is based on the Independent article, Kellogg’s launches new beers made from Rice Krispies and Coco Pops waste, by Katie O’Malley, June 13, 2019; the Business Green article, Sip, sparkle, and drink: Kellogg’s turns cereal waste into beer, by Toby Hill, June 13, 2019 (requires a subscription); and the Facebook video, Kellogg’s is making beer using discarded corn flakes, by NowThis Food, December 18, 2019. Image source: Shutterstock / Y_L

Discussion Questions:

1. Why is Kellogg’s Continue reading →

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