Huy Fong Foods, the California manufacturer of Sriracha hot sauce, will not dispatch any more of the sauce as the California Department of Public Health has enforced tighter regulation on the company, the Los Angeles Times reported.
The sauce producer confirmed to the newspaper on Wednesday that its three main sauces—Sriracha, Chili Garlic and Sambal Oelek—now must be held for a maximum of 30 days before being delivered to wholesalers and distributors. It is unclear if the hold is part of a new requirement and the Department of Public Health did not respond to requests for comment, the Los Angeles Times said.
The halt on shipping comes amid Huy Fong's legal dispute with the city of Irwindale, Calif. The city sued the company after residents said spicy odors caused health issues. A Los Angeles Superior Court judge ordered in November that Huy Fong's factory had to cease any odor-causing production until experts can mitigate the smell, the story said.
At the time, Huy Fong officials did not expect production delays because chilis had been ground for the year and the company simply needed to mix and bottle the sauce, according to the newspaper.
The company began to comply with the state's hold period this week, said operations manager Donna Lam, the report said.
(Read more: Sriracha fight set to simmer a little longer)
Although the national sandwich chain Subway offers two subs featuring a sriracha sauce it's not worried about Huy Fong's shortage. "The creamy sriracha sauce we use is a proprietary recipe our executive chef worked on and is not impacted by the California factory closing," said Kevin Kane, public relations manager at Subway.
Read the complete article here.
—With additional reporting from Evelyn Cheng of CNBC.com.