Climate change and pepper shortages sends price of Sriracha skyrocketing

Shortages of chillies in the US has hit the supply of Huy Fong Siracha. Credit: AP

Sriracha hot sauce, the iconic condiment that has come to dominate trendy restaurants and kitchen pantries, has skyrocketed in price after being rocked by global supply shortages of chillies.

The shortage is being felt worldwide with prices in America more than doubling from $5-$10 to $20 in a few months.

Huy Fong is the company behind the most popular brand of Sriracha, which makes the iconic green-capped bottles.

On Amazon, a twin pack of the 500ml bottle of the hot sauce sells for £17, compared to £8.95 in May, according to the price analysis app Sweepa.

On eBay, a bottle 800g bottle bidding price starts at £15.

Some smaller vendors still have bottles on sale for under £10.

Huy Fong relies entirely on chillies from Mexico and the US. Credit: AP

Huy Fong is based in the US and has been beset by shortages of raw materials in recent years.

The brand is primarily made in America, with all of its peppers brought from the southwest of the US and Mexico, both of which have had poor harvests in recent years.

Flying Goose, a Sriracha maker that is popular in the UK and imitates the green-capped bottles on Huy Fong, gets its chillies from Thailand and has not had similar shortages.

According to Sweepa, the price of a 455ml bottle of Flying Goose has increased from £4.90 to £5.80 in a year.

The peppers used by Huy Fong are usually irrigated with water from the Colorado River, which has reached historically low levels recently.

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Some experts say Huy Fong’s shortage is partially a consequence of climate change — pointing to weather shifts and extreme drought in Mexico and the US Southwest.

David Ortega, a food economist and associate professor at Michigan State University, said: "The main culprit here is a shortage of their primary ingredient, the red jalapeño chilli pepper and that’s due to climate change and the mega-drought."Huy Fong has also had a rough relationship with suppliers for several years, which is one of the reasons why it specifically is struggling with production when other hot sauce makers are getting the chillies they need.

In 2017 its relationship with California-based Underwood Ranches, who was its sole supplier for 30 years, broke down.

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In 2019 a court ruled Huy Fong had breached its contract and awarded the ranch $23.3m in damages.

Underwood now produces its own Sriracha, which has seen demand soar due to the shortage of Huy Fong.

Despite the shortages, many other hot sauce makers are able to meet demand with several businesses like Tobasco looking to muscle in on Huy Fong's territory.