HOT MESS
Fortune US|February - March 2024
Huy Fong sriracha rose from nowhere to become an iconic American food brand. Here's how a feud between partners knocked it off its throne.
Indrani Sen
HOT MESS

It was November 2016, and the fourth-generation California farmer had just completed a perfect pepper harvest another high point for a business, Underwood Ranches, that had grown exponentially over three decades on the strength of a single crop. As the sole supplier of the juicy red jalapeños for sriracha, Huy Fong Foods' iconic fiery-red chili-garlic sauce, Underwood's empire of peppers had spread from a 400-acre family farm in the 1980s to 3,000 acres across two counties outside Los Angeles.

Sriracha's rise had by then become the stuff of business legend. That spicy, slightly sweet, good-on-everything sauce, in the instantly recognizable bottle with its white rooster emblem and bright green nozzle, was the brainchild of David Tran, who had first devised the recipe and sold the stuff in L.A. in 1980 as a Vietnamese refugee starting a new life for his family.

Tran's business motto is "make product, and not profit," but Huy Fong had become the No. 3 hot sauce brand in America-all as a private company, without selling even the smallest share to the country's Big Food titans. At the time, Tran's green-tipped bottles could be found in one in 10 American kitchens and on the International Space Station.

Sriracha's success grew from the firm ground of Underwood and Tran's business partnership: Underwood supplied all Huy Fong's chilies, and Tran was Underwood Ranches' only pepper buyer. By 2012, Tran had built a gleaming 650,000-square-foot factory less than two hours from Underwood's Ventura County headquarters. On a tour of the site, he told Underwood that together they would fill it with chilies.

This story is from the February - March 2024 edition of Fortune US.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the February - March 2024 edition of Fortune US.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM FORTUNE USView All
AI Isn't Coming for Your Job At Least Not Yet
Fortune US

AI Isn't Coming for Your Job At Least Not Yet

So far, the technology has replaced only a small number of workers. But the future risks many more.

time-read
5 mins  |
April - May 2024
THE TRUTH EVEN HE CAN'T DUCK
Fortune US

THE TRUTH EVEN HE CAN'T DUCK

Aflac's DAN AMOS has spent his 34 years as CEO selling insurance against illness and death. Now he has to confront his aging customers' mortality and his own.

time-read
10+ mins  |
April - May 2024
THE NEW HOLLYWOOD POWER PARADIGM
Fortune US

THE NEW HOLLYWOOD POWER PARADIGM

Inside the sisterhood of stars changing the narrative.

time-read
10 mins  |
April - May 2024
SAUDI ARABIA'S POWER PIPELINE
Fortune US

SAUDI ARABIA'S POWER PIPELINE

The oil earnings flowing from the most profitable company in history are helping the Saudi kingdom shake up the global economyand the old geopolitical order.

time-read
10+ mins  |
April - May 2024
THE [FOREVER] FOUNDER
Fortune US

THE [FOREVER] FOUNDER

Michael Dell turned his dorm-room PC company into the go-to hardware provider for 99% of the Fortune 500. Now the longest-standing founder-CEO in tech has a chance to cash in on the AI bbom—and make himself and his company bigger than ever.

time-read
10+ mins  |
April - May 2024
HOW BOEING BROKE DOWN
Fortune US

HOW BOEING BROKE DOWN

Boeing's strategy sent the stock soaring more than 1,000% over 20 years. But it contained dangerous flaws that are only now coming into view amid a drumbeat of terrible news.

time-read
10+ mins  |
April - May 2024
The Art of Banking
Fortune US

The Art of Banking

To appeal to the ultrawealthy, banks like UBS keep fine art-and art expertsclose at hand.

time-read
1 min  |
April - May 2024
Is the Bitcoin Bull Market Safe to Buy?
Fortune US

Is the Bitcoin Bull Market Safe to Buy?

ETFs have made Bitcoin investing easier than ever. But they may be adding air to a bubble.

time-read
5 mins  |
April - May 2024
Goodbye, Tough Guy
Fortune US

Goodbye, Tough Guy

More executives are going on all-male retreats to open up, feel less lonely, and build empathy.

time-read
4 mins  |
April - May 2024
Memo to Silicon Valley: Bring It On
Fortune US

Memo to Silicon Valley: Bring It On

New York City's Runway was the pioneering leader in Al-generated video for years. Now ChatGPT maker OpenAl is coming for it.

time-read
6 mins  |
April - May 2024