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International Business Times UK
International Business Times UK
Business
Akshay Puri

How Sriracha Turned on the Farmer Who Built Its Empire – and Paid a $23.3M Price

After their partnership ended, Huy Fong sourced peppers from new growers, while Underwood launched its own Sriracha-style sauce. The dispute revealed their deep dependence on each other. (Credit: This is an AI-Generated Image)

A handshake helped build one of America's best-known hot sauces. Nearly three decades later, that same business relationship ended with a jury finding Huy Fong Foods liable for breach of contract and fraud, resulting in a $23.3M award to its former pepper supplier.

The dispute involved David Tran, founder of Huy Fong Foods, and farmer Craig Underwood, whose ranch supplied the red jalapeños used in Sriracha for about 28 years. What began as a close commercial relationship became a legal battle over future crops, investment, and whether Huy Fong concealed its plans to end the arrangement.

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