City, state regulators could bring unhappy ending to what was an immigrant success story.
Thanks to the city of Irwindale and the state of California, a thriving immigrant-owned company faces the possibility of serious financial damage, and fans of a popular local food product will face shortages or be driven to alternatives from other parts of the country. This sends the wrong message to Southern California businesses.
Sriracha Hot Sauce has been a rare local business success story in recent years. Created by David Tran, an immigrant from Vietnam who came to California in 1980, the bright red sauce in the clear plastic bottle emblazoned with a signature rooster logo has become a staple in restaurants and fast-food outlets. Not exactly a Chinese-, Thai- or Vietnamese-style condiment, Sriracha is a Southern California original, combining the fiery traditions of many cultures. The company has branched out with Sriracha Candy Canes, Sriracha Potato Chips, and even a new Sriracha-flavored vodka. Enthusiasts held the first annual “Sriracha Festival” Oct. 27 in Downtown Los Angeles.
Then, the day after the Sriracha festival in October, the San Gabriel Valley city of Irwindale, where Sriracha maker Huy Fong Foods has an almost-new $40 million plant, sued to shut it down. It should be noted that Irwindale courted Huy Fong to the city in the first place with a low-interest loan.
Irwindale alleged that fumes from the factory were causing “burning eyes, irritated throats and headaches” among nearby residents, and Huy Fong Foods was ordered by Los Angeles Superior Court Judge Robert H. O’Brien in late November to cease all odor-causing activities. Luckily, the year’s production was largely finished, so repercussions at that time were limited; but worse was yet to come.
The California Department of Public Health decided this month to enforce stricter guidelines that require the manufacturer to halt shipments for 30 days to make sure the sauce is safe, even though the Department freely admits that there have been no complaints or incidents of tainted sauce to trigger such heavy-handed and costly enforcement.
The Sriracha supply in the marketplace will not recover until mid-January, at the earliest.
Sauce lovers have panicked. A single packet of hot sauce, billed as “the last,” was offered on eBay for $10,000. Numerous food and culture blogs are posting advice for how to deal with what they call “The Great Sriracha Shortage” and promoting alternatives, including a different sauce made in Brooklyn, New York.
What we are seeing play out is governments’ abuse of a successful, popular, uniquely Southern California enterprise.
Irwindale has less than 1,500 residents, and its best-known feature has been more than a dozen large gravel pits. Reportedly, the smell complaints, which the Irwindale city attorney told the Los Angeles Times numbered around 20 to 30, originated with the son of a city councilman.
Whatever the root cause, the message is unfortunate: Southern California is hostile toward business. State and local officials are happy to help favored companies – some of questionable viability. But small and midsize businesses, the main driver of our national economy, can expect to encounter regulations that can be both crushing and ever-changing.
Huy Fong Foods is an example of everything that once was right about California, but is fast becoming a victim of much of what’s wrong in the state.
Sriracha chili sauce bottles are produced at the Huy Fong Foods factory in Irwindale.
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