Heated Issue in Sriracha Supply Chain

Heated Issue in Sriracha Supply Chain

August 19, 2019

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. 


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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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Making the Little Black Dress Green

Making the Little Black Dress Green

Environmental excesses are soiling the glamorous image of fast fashion.

The ability to bring the latest styles to the masses has made Zara a leader in the fast fashion industry. However, this success is leaving a sizeable carbon footprint. Determined to be a trendsetter on several fronts, Zara has vowed to become a model of sustainability in its industry by 2025. Some skeptics believe that goal may be unrealistic.


Video Spotlights: Environmental Impact of Fast Fashion and How to Make Fast Fashion More Sustainable


This post is based on the npr.org article, Can Fast Fashion and Sustainability Be Stitched Together?, by E. Bowman and S. McCammon, July 27 2019, and the YouTube videos, The Problem with Fast Fashionby Teen Vogue, September 21, 2018, and Making Fashion More Sustainable, by Bloomberg Markets and Finance, November 8, 2018. Image source: David Hughes/Getty Images.

Discussion Questions:

1. What is “fast fashion”? What are the reasons for its appeal to customers?

Guidance: Fast fashion is affordable, trendy clothing that is produced and distributed rapidly to mass markets. The availability of the latest styles at relatively low prices makes fast fashion very appealing.

2. What are the core Continue reading

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