The people that run Siracha, the hot sauce makers are smart—smarter than the confused Guv Brown. They need to continue producing their product, but they also need to leave California. They have figured out how to get out of crazy California and into Texas—while growing their business.
They will “expand” to Texas. This will happen shortly. Once in place, once able to further expand, they will be able to close down their California plant, earn real money in Texas and grow the business without communities forcing them to hire attorneys and public relations experts—instead of marketing people.
“The city of Irwindale last month declared Tran’s Huy Fong Foods factory a public nuisance because residents complained about harsh odors emanating from the plant. Tran, upset at the city’s decision, invited Villalba and San Fernando Valley Congressman Tony Cardenas to tour the facility and judge for themselves.
“This is not a pirate mission, as it’s been called, or a poaching mission,” said Villalba, who wore a Sriracha-themed pocket square. “This is a mission about explaining what the value proposition is for Texas.”
Calling business expansion in the Lone Star State the “Texas Two-Step,” Villalba cited Toyota, which recently announced it will move about 3,000 jobs from Torrance to Texas by 2017, as a prime example.”
Sriracha owner says he will stay in Irwindale, consider expanding to Texas
By Sarah Favo,t, Pasadena Star-News, 5/13/14
IRWINDALE >> With the Lone Star flag flying over his plant, Sriracha sauce maker David Tran gave Texas officials a first-hand look at the 650,000-square-foot plant that neighbors say stinks.
Tran, wearing a suit instead of his usual casual dress, gave Texas state Rep. Jason Villalba, a Republican from Dallas, and other Texas officials a tour of his facility. He hung the Texas state flag in their honor.
“This is a good place. I moved in. I will stay here,” Tran said at a press conference at his $40 million, 650,000-square-foot facility on Azusa Canyon Road, which opened last year.
Tran said as long as there is a demand for the popular hot sauce from his “Sriracha friends,” he would keep the Irwindale factory open and add a second plant.
The city of Irwindale last month declared Tran’s Huy Fong Foods factory a public nuisance because residents complained about harsh odors emanating from the plant. Tran, upset at the city’s decision, invited Villalba and San Fernando Valley Congressman Tony Cardenas to tour the facility and judge for themselves.
“This is not a pirate mission, as it’s been called, or a poaching mission,” said Villalba, who wore a Sriracha-themed pocket square. “This is a mission about explaining what the value proposition is for Texas.”
Calling business expansion in the Lone Star State the “Texas Two-Step,” Villalba cited Toyota, which recently announced it will move about 3,000 jobs from Torrance to Texas by 2017, as a prime example.
According to Villalba, the “Texas Two-Step” follows a similar pattern: a business will expand into Texas where taxes and regulations are low and then bring the rest of the company over due to what he termed a “business-friendly climate.”
Tran’s reservations about expansion to the Lone Star State centered on ensuring Texas soil can grow the specialized jalapeño pepper variety which is crushed into the hot sauce.
Villalba said Tran’s farmers would speak with agriculture experts in Texas before Tran travels to Texas to pick out a site for his second plant.
Tran said he imported chilies from Mexico 25 years ago, but the hybrid plant he grows now is spicier than Mexican chilies.
“We send the seed (to Mexico) and it cannot grow,” he said.
Monica Salembier, a greenhouse manager in the plant science department at Cal Poly Pomona, said the gulf region of Mexico is especially conducive to growing peppers because it has heat and humidity.
“I’m sure he can fine-tune and find an area in Texas and not have the dense population where he can put the factory without people getting the respiratory napalm,” Salembier said.
The McIlhenny Company, which makes Tabasco, grows its pepper seeds in Louisiana, but the fruit is grown in Latin America, according to the company website.
Tran has said that he will outgrow his Irwindale facility by 2017 if the demand for his product continues. He has been expanding at a rate of at least 20 percent each year for the past several years.
Tran said Texas is the only state he has had deep discussions with about a possible expansion. He has vowed he will not expand outside of the U.S.
“If I can create jobs for U.S.A., I will,” Tran said.
Irwindale city officials Wednesday night will recommend the City Council delay, for a second time, voting on a resolution that would put Tran under a 90-day deadline to reduce the factory’s odors during the fall chili grinding season. A Los Angeles Superior Court judge also ruled in favor of the city.
City Manager John Davidson said the city is hoping to reach an informal resolution with Huy Fong Foods.
