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Texas woos Sriracha to move plant from California

Texas is trying to entice Huy Fong Foods, the Irwindale, California Company that makes Sriracha hot sauce. However, CEO David Tran, isn’t interested due to growing supporters.

Texas woos Sriracha to move plant from California-slide0
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Texas is trying to entice Huy Fong Foods, the Irwindale, California Company that makes Sriracha hot sauce. However, CEO David Tran, isn’t interested due to growing supporters.
businessinsider.com

Jason Villalba, a state representative in Texas, plans to tour Huy Fong foods’ production plant on May 12, and to try to convince the company to move, according to Forbes. The lawmaker wrote Tran a letter saying he was “deeply troubled that one of the fastest-growing and universally beloved condiments in the world – made right here in the U.S.A. could face such blatant obstructionism by a local city government,” Forbes reports.

Despite Villalba’s letter, the city of Irwindale doesn’t seem to be bothered by the plant. The city council was expected to vote on, whether to force Huy Fong Foods, to cease releasing fumes in the area that causes asthma and nosebleeds to residents’ complaint.

As Forbes gathered information from the owner, Tran, that he has no problem in the past. The company was operating in California for the past 34 years. “We could grow in the state of Texas if need to be, he said. “But after seeing the supporters yesterday, I don’t feel alone, so I need to try to stay here instead of relocating. There is, however, the possibility of expansion to other locations due to growing sales.”

The business is booming according to the Los Angeles Times. Its company has made about $83 million in revenue last year despite their wholesale prices affordable and competitive to the market for decades. The sauce retail price is roughly $4 per 38-ounce bottle, which is pretty good price to consumers.

Many entrepreneurs in Texas compete with Tran’s hot sauce, and wins, on both price and quality. Huy Fong foods’ sauce has created countless competitors – the product was named after a city of Thailand, which is why the owner’s unable trademark its name. Despite no advertising support the company succeed.