You can still buy the popular sauce on Amazon (AMZN), but you might have to blow your grocery budget to do so. On the Everything Store, Sriracha bottles are going for almost $100.
According to Huy Fong Foods, the producer of the most popular Sriracha sauce, this shortage is the result of an “unprecedented” ongoing crop failure.
Northern Mexico, along with most of the southwestern US, is experiencing a “megadrought.” According to scientists, this region is currently living through the driest 22-year period in over 1,200 years.
Researchers believe this drought is related to climate change and the onset of increasingly unexpected and extreme weather patterns. It has also likely been exacerbated by back-to-back La Niña events.
Because of this drought, the chili peppers needed to make Sriracha sauce are in short supply, leading to the surge in prices.
Spicy Price Spike
Similar to the toilet paper run of 2020, different sized bottles of Sriracha sauce are demanding a significant markup on online sites.
For example, a 28-oz bottle sold for nearly $70 on eBay (EBAY). Meanwhile, one Amazon seller listed a 2-pack for $124. Some restaurant owners have even reported people stealing the sauce from their stores.
Since hot sauce is far from being a dietary staple, this issue might simply seem like a tangy news story. But it’s also one to continue watching. If this drought ends up impacting staple goods like wheat, corn, or rice, things could go from “mild” to “spicy” real quick.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.