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I think this Fortune story has a decent timeline of events and explains the perspective of both sides: > At first, Underwood recalls, he was confused and hurt.

I think this Fortune story has a decent timeline of events and explains the perspective of both sides: > At first, Underwood recalls, he was confused and hurt. “We were trying to figure out what the hell’s going on,” he tells me when I visit his offices in Camarillo, Calif., in December. “Because we were really vulnerable, both in the percentage of our business that he commanded—and I guess our belief that we were going to have a long-term relationship.” But he soon became convinced, Underwood tells me, that Tran’s intentions were bad, and had been for some time. “Basically, he really was out to destroy me,” he says. “He didn’t give a damn about me or our family or all that we’d done together.” > Over at Huy Fong, feelings were similarly raw. Tran felt betrayed, and blindsided by accusations that he had been underhanded. For most of three decades, he had remained loyal to Underwood as his only pepper producer, and each year he had handed over millions on the promise of a harvest, a gesture that he saw as an act of faith. Now all that trust had collapsed in a petty argument over money. > Tran has come to believe that Underwood was trying to drive him to bankruptcy, then steal his sauce business. “I helped him because he grew chili for me,” he says. “He made money, he owned land. But it is not enough. He wanted to take over my business.” It felt like being “stabbed in the back,” adds Donna Lam, Tran’s sister-in-law and executive operations officer. * https://archive.is/https://fortune.com/2024/01/30/sriracha-shortage-huy-fong-foods-tabasco-underwood-ranches/ https://archive.is/https://fortune.com/2024/01/30/sriracha-s...

theamk 7mo ago
That story actually pretty bad.. Court findings are pretty clear on this [0]: > When Roberts arrived, Tran told him that he was forming a new company. Lam was going to operate the company. Tran told Roberts that Roberts would be working for the new company. > When Roberts declined the job offer, Tran was not happy. Tran told Roberts that Underwood would have to deliver peppers for $500 per ton to compete with Chinese pepper mash that sold for $300 per ton. [...] Underwood was suddenly facing imminent catastrophic financial consequences. It could not grow peppers for $500 a ton. Its costs averaged $610 a ton. [...] Tran refused to provide Underwood with prepayments needed to finance the crop. Tran also insisted that Underwood contract with Chilico rather than Huy Fong. OK, 8 days after agreeing on contract (!), the Huy Fong man tried to hire away Underwood's COO (Roberts), pushes hard for price below cost, refuses to provide money for planting, and tries to offload responsibility to a shell company. This sounds about as evil as it gets, and Underwood was right to refuse. And what does the journalist say about this? "He wanted to take over my business"? "It felt like being "stabbed in the back""? I am sorry, I think that story author was fed some BS by Tran, and did not bother to verify it. (Alternatively, maybe Tran has a explanation that makes sense for him... I'd like to hear the thoughts of someone who walks back on contract few days after it's made, and how they justify it to themselves - but sadly that fortune story does not have this) [0] https://cases.justia.com/california/court-of-appeal/2021-b303096.pdf?ts=1627407095 https://cases.justia.com/california/court-of-appeal/2021-b30...

theamk 7mo ago

That story actually pretty bad.. Court findings are pretty clear on this [0]: > When Roberts arrived, Tran told him that he was forming a new company. Lam was going to operate the company. Tran told Roberts that Roberts would be working for the new company. > When Roberts declined the job offer, Tran was not happy. Tran told Roberts that Underwood would have to deliver peppers for $500 per ton to compete with Chinese pepper mash that sold for $300 per ton. [...] Underwood was suddenly facing imminent catastrophic financial consequences. It could not grow peppers for $500 a ton. Its costs averaged $610 a ton. [...] Tran refused to provide Underwood with prepayments needed to finance the crop. Tran also insisted that Underwood contract with Chilico rather than Huy Fong. OK, 8 days after agreeing on contract (!), the Huy Fong man tried to hire away Underwood's COO (Roberts), pushes hard for price below cost, refuses to provide money for planting, and tries to offload responsibility to a shell company. This sounds about as evil as it gets, and Underwood was right to refuse. And what does the journalist say about this? "He wanted to take over my business"? "It felt like being "stabbed in the back""? I am sorry, I think that story author was fed some BS by Tran, and did not bother to verify it. (Alternatively, maybe Tran has a explanation that makes sense for him... I'd like to hear the thoughts of someone who walks back on contract few days after it's made, and how they justify it to themselves - but sadly that fortune story does not have this) [0] https://cases.justia.com/california/court-of-appeal/2021-b303096.pdf?ts=1627407095 https://cases.justia.com/california/court-of-appeal/2021-b30...