Kalifornia's Red Tape, Err . . . Hot Sauce

I was going to post something about the JPM patent application regarding crypto currencies, comparing two contrasting viewpoints, here and here, but this newest act of idiocy demanded my immediate attention. 

For any one who likes their food hot and spicy, like me, Sriracha, the spicy concoction known also as Red Rooster hot sauce, is a sure fire fix:

Sriracha Hot Sauce

It is good on and in everything.  I've had it drizzled over Oreo cookies, it is that good.  I wonder if it would be good drizzled over a bowl of vanilla ice cream, with chocolate chips?  Who knows?  I do know what is a certain cold remedy: just a squirt of the goodness mixed into a plain ol' bowl of chicken soup, this stuff clears up the nasal passage better than any pharmaceutical, for sure.  This stuff makes my mouth water just looking at the bottles of the delicious, spicy hot sauce.  A close second is the King Taco red hot sauce: 

I almost wrote about Mr. Martinez's passing, but I did not want to burden the community with a sad story as we near Christmas.

But, I digress . . .

So, what the hell does this have to do with anything?

Well, the hint comes from the title of the post.

The story is here: http://www.sbsun.com/lifestyle/20131211/

sriracha-hot-sauce-sales-halted-causing-shortage-of-rooster-sauce

If anyone has not read the story on this company, a humble, immigrant start up operation in the ethnic streets of Los Angeles.  Unfortunately, a grumpy old judge, far too mean and ornery and enamored of his power as a black-robe wearing king of his little courtroom, [who I know personally having had cases before him], decided that a group of people who don't want the hot sauce made in their town, never mind that the sauce has been made there for decades without incident or complaint, and as such, the company got shut down.  

Appeals are certain to ensue, with enormous legal fees and costs for all sides, not to mention the disaster unfolding for the company that now faces a slew of lawsuits from the sudden stoppage of its business.

Is it any wonder why businesses are fleeing Kalifornia?  

Is there any politician with any sanity left who can protect a productive business from predators all around?  If the state keeps taxing productive companies, the businesses flee.  If the state does not protect the productive businesses from idiot judges like this one, the businesses flee.  What is next?  

Anyhow, just some food for thought.

I often wonder out loud if it may be better in the long run to adopt a strategy of no resistance at all to the progressive movement advance?  Instead of delaying the inevitable, incremental marginal advance of increasing central planning and government control, perhaps it is better to step out of the way entirely and let them accelerate without impedance towards their ultimate destination of collapse?

If anyone in another business friendly state wants to take on a winner, then an easy victory would be to reach out to Huy Fong Foods and offer to help them relocate to a business friendly locale.  

Just saying . . .

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94 Comments

realitybiter's picture

first

first first
sorry couldn't resist

realitybiter's picture

cal hot sauce

I was introduced to said hot sauce in Vietnamese pho shops in the Bay Area.  Good stuff.  Might as well shut them down- I mean who wants to see success?   I wonder who felt that they could benefit?  Follow the money?

On the PM front it certainly seems like the normal signs of despair are popping up.  Eric Sprotts demotion, for one.  See Trader Dan's comments tonight.

California Lawyer's picture

@realitybiter

I saw that article on Sprott.  I wondered out loud as well the significance of why that article was written right now?  Is this a sign that the capitulation bottom is in?  

Good thing my stack is deep beneath the surface of Lake Jenks.  Otherwise, I would have to sell the worthless stuff, since I would most certainly be better off holding paper bankster notes . . .

As for who would benefit from the shutdown order, that my friend is a great question!  Sriracha was a market leader, ubiquitous here in So. Cal.  I have no idea.

I can tell you that Judge O'Brien is an a-hole.  He should have been run off the bench years ago for having a nasty, intemperate disposition. Oh well.  Sriracha's lawyers should have exercised a peremptory challenge, now the case just gets expensive either on lawyers or compliance, or the good old graft and kickback to the city official who will approve their re-opening permit . . .

JY896's picture

This is the daily staple of software engineers everywhere

If there is a cause custom-made for going viral and generating uproar from geeks everywhere -- this might very well be it.

In the meantime, this story has layers --

- a poor choice in relocating the facility to a new plant?

"Previously the spicy condiment had been manufactured for 30 years in Rosemead."

Or rather, vindictive and disapproving locals in the new city of Irwindale? There is more detail on the move, the owner and the manufacturing operation here. A local business, employing local people, using locally grown produce?! Travesty! Heresy! MUST...BE...STAMPED...OUT!!!

"The company harvests all its chilies -- which last year was more than 50,000 tons -- from one farm, Underwood Family Farms in Ventura, once a year around the third week of August."

- State regulators are piling on, and have caused a (IMHO) completely unnecessary 'hold' of 30 days to be put on any hot sauce produced to 'wait and see if any harmful bacteria develop'. No one has bothered to look up the biological effects of capsaicic acid, it seems. Also, it seems we are now operating under Louis Pasteur rules of food production -- lets leave stuff lying around for a little while, and see what develops. You couldn't make this stuff up:

"Because Sriracha is not cooked, only mashed and blended, Huy Fong needs to make sure its bottles won’t harbor dangerous bacteria."

In defense of the ratchety old judge:

"Los Angeles Superior Court Judge Robert O'Brien ruled Tuesday that the plant must cease any operations that cause the noxious fumes and make quick changes to make sure that smells from production of the sauce are limited in the future.

Irwindale city residents, east of Los Angeles, sued Huy Fong in October alleging the company refused to do enough to stop the fumes, which they said were strong enough to irritate eyes and throats.

Judge O'Brien denied a request that all operations be shut down. Instead, his order is an interim measure while the court considers the lawsuit from residents."

All in all, it looks to me like Mr. Tran and his colleagues ran afoul of the crime of 'operating a business while NOT paying massive (enough) bribes'. It CERTAINLY looks to me like whoever is involved in the local lawsuit was able to pull some strings at the state DoH level. Extortion of 'protection money' is underway, along with an example being set for any successful small business who wants to try to set up shop in the town/area.

This really pisses me off, and this is not even my favorite hot sauce.

More history/backstory:

David Tran, founder/owner -- how the sauce's name came about, where he's from, etc.

LA Times profile, from earlier in the year: http://articles.latimes.com/2013/apr/12/business/la-fi-himi-tran-20130414

The latter was almost surely instrumental in convincing some people to throw a lawsuit at him. Hard-working, self-made businessman? CANNOT have that in our neighborhood, no sirree.

AlienEyes's picture

Thank God I'm a country boy!

......that doesn't live in the hell hole called The Democratic People's Republic of Kalifornia !!!

.

Even if the stuff has a few bacteria in it, they are no doubt blistered and burned all to hell and so sick that they are no threat to anybody. If the locals think the plant smells bad, let them visit the town in Oregon where they make horseradish souse and the people wear gas mask.

murphy's picture

We love it too

Looks pretty obvious why they shut them down. According to the Times article that JY linked.

1) they have kept it the same price for years 2) They refused to sell out to the big boy conglomerates and then 3) they refused to let Wall Street take them public.

In this case it seems the reason for the shut down is " who doesn't profit from their business".

I guess this is an obvious observation. Back to sleep.

JY896's picture

Documentary about Sriracha

What you don't know about Sriracha: 11 fun facts from a documentary -- LA Times

http://d2pq0u4uni88oo.cloudfront.net/projects/526958/video-255902-h264_high.mp4

Kickstarter project from earlier this year, seeded with ca. $20K.

murphy, I am sad to say you are probably right. There are many levels of enterprises engaged in the racketeering business -- I could well have been looking too low on the totem pole.

But can you imagine what a marketing push it would give the sauce if a neighboring city/state were to adopt the business and help it relocate? I suppose we would find out what level of the racket is involved...

Hagarth's picture

Oh no, not another

twinky type story.  Looks like I'll have to load up tomorrow.  Been using prolific amounts of Sriricha for over half a decade, even gave up Sambal Oeleck when Sriricha came along...not sure if I can go back. 

Gold Dog's picture

A California Tale

We had a warehouse and office in City of Industry in the 80's and 90's, subsequently moved it for the obvious reasons.

The "Head of House" and I were talking one day and he indicated that he wanted to hire a part time person to come in and do the filing on Wednesdays. I told him to let it rip, they were swamped because business was so strong.

Perhaps a month later I asked him how the search was going. He informed me that they had had some difficulty coming up with a suitable person but did share the story of a close one.

A young lady came in to interview and Bill said that she was perfect and the interview was going along just great and he had decided to hire her.

He started telling her about the companies' history and what the job would entail, she seemed amenable to all of that and was ready to get going. Then he hit a little snag, she asked a question....

"Do I have to come to work EVERY Wednesday?"

Poor thing, she didn't get the job! (But this phrase made it into company lore and is quoted about two or three times a year when we are splitting up the task list.)

Your friend,

Dog

PS- Time to make the donuts.

PPS- Thanks Cal, I had my wife buy five bottles as soon as the news broke.

ag1969's picture

Well Hey, if you can't have local hot sauce...

...at least you can have chicken processed in China!

Do you know what is in your chicken nuggets?  Thanks to Barack Obama, that is going to be a more important question than ever.  At the end of August, the Obama administration quietly decided to start allowing Chinese poultry processors to ship processed chicken into the United States.  For now, the meat must originate either in the United States or in another country where the poultry population has been certified to be safe.  What that means is that chickens from the United States will be shipped all the way over to China, processed in plants over there, and then shipped back across the Pacific Ocean for us to eat.

http://theeconomiccollapseblog.com/archives/now-that-obama-is-allowing-chicken-from-china-what-will-that-do-to-the-chicken-industry

WTF?

joseph f smith's picture

Onerous Kalifornia

My company had a plant in Fontana before it became FONTANA, HOME OF $1000 PER SQ. INCH for property.  Then UPS bought land behind the airport and the boom was on.  So was the Kalifornia Kleptocracy.  We had another plant in business friendly South Carolina, but thought we needed a presence to assure customers we could deliver west of the Rockies.  After being besieged by every government entity (the fire inspectors were the most ridiculous, and we made a water based product--go figure.)  After the Inquisition began, looking at an $18.50 per hour entry level wage for a janitor, and adding up all the other Kaliforniacentric BS, we decided we could make the products in SC, ship them to CA on our own tankers, go to City Of Industry and get a back haul to the East Coast and make money on the freight alone.  Have a nice day California as you drive all businesses out.

joseph f smith's picture

Onerous Kalifornia

My company had a plant in Fontana before it became FONTANA, HOME OF $1000 PER SQ. INCH for property.  Then UPS bought land behind the airport and the boom was on.  So was the Kalifornia Kleptocracy.  We had another plant in business friendly South Carolina, but thought we needed a presence to assure customers we could deliver west of the Rockies.  After being besieged by every government entity (the fire inspectors were the most ridiculous, and we made a water based product--go figure.)  After the Inquisition began, looking at an $18.50 per hour entry level wage for a janitor, and adding up all the other Kaliforniacentric BS, we decided we could make the products in SC, ship them to CA on our own tankers, go to City Of Industry and get a back haul to the East Coast and make money on the freight alone.  Have a nice day California as you drive all businesses out.

DeaconBenjamin's picture

Gold Drop Is Blow to Prominent Hedge-Fund Manager Sprott

Dec. 11, 2013 7:29 p.m. ET

One of the world's biggest gold bugs is getting crushed by the metal's steep fall.

The flagship fund of prominent Canadian hedge-fund manager Eric Sprott SII.T -3.08% has dropped more than 50% this year in what will likely be the third consecutive year of double-digit percentage losses, according to documents sent to investors.

MI-CA188_SPROTT_D_20131211234010.jpg

Eric Sprott says government data understate precious-metals demand. Bloomberg News

 

MI-CA184_SPROTT_NS_20131211183613.jpg

Redemptions and weak performance have pushed down hedge-fund assets managed by Mr. Sprott to about $350 million from nearly $3 billion in 2008.

The declines are largely due to the conviction of Mr. Sprott—for the most part unshaken—that gold and other precious metals will rise in the long term.

Gold has dropped 25% over the past year and is on track for its first annual decline after 12 years of gains. It settled Wednesday at $1,257 a troy ounce. Silver, another favorite of Mr. Sprott's, is down 33% and settled Wednesday at $20.36 an ounce.

The poor results come with a personal cost: Mr. Sprott's investment company, Sprott Inc., which he founded in 1981, said last month that it is phasing him out of investment decisions.

By the end of next year, Mr. Sprott—who early in his career was a programmer for Merrill Lynch—will no longer directly make the firm's investment decisions, though he will remain chairman.

Sprott Chief Executive Officer Peter Grosskopf said that Mr. Sprott would also be handling "chief cheerleader duties."

Already last year, the firm added co-chief investment officers to all of Mr. Sprott's funds, including a Canadian equity mutual fund that lost 40% during the past year.

"Nobody here likes me to use that word 'turnaround' but let's face it: That's what we're doing," Mr. Grosskopf said.

Sprott's mutual-fund, private-equity and wealth-management arms now collectively manage about $7 billion, down from $10 billion last fall. The vast majority of that decline was from redemptions and position markdowns in the funds and physical-gold trusts.

http://online.wsj.com/news/articles/SB10001424052702304202204579252301187881402?mod=WSJEUROPE_hpp_LEFTTopWhatNews&ftcamp=crm/email/20131212/nbe/AlphavilleLondon/product

DeaconBenjamin's picture

I wonder if it would be good drizzled over a bowl of ice cream

Had some friends offer me salsa for my ice cream once as a joke.  It wasn't half bad.

tmosley's picture

I don't envy anyone trying to

I don't envy anyone trying to run a business ANYWHERE in this country.  Local governments are seemingly all corrupt.  The Federal government is out to kill us all.  Some states are better than others, but can't make up for the shortcomings of the other two.

No, I am perfectly happy to sit back and relax while I watch the world fall apart.  Kinda tough paying the bills when I have to liquidate some silver at these soul-crushing prices, but what do you do?

DeaconBenjamin's picture

never mind that the sauce has been made there for decades

Sounds like the plaintiffs came to the nuisance.  I wonder how the judge justified his ruling.

SubjectivObject's picture

Houston

I'm sure, would love to have him relocate there.

Turd Ferguson's picture

Wow, brutal

MODERATOR

Thanks, CaL. Had no idea. Will be buying some more today.

ag1969's picture

Deacon Re: Sprott

I think it is a shame that for the moment, the bad guys seem to be winning.

Let's compare Sprott and Dimon.

Jamie Dimon runs an international crime syndicate.  His Bank has paid more fines and faces more litigation than any company on earth.  Yet no criminal charges and despite some suggestions that he step down because of his nefarious actions, they can't get rid of him.  He wears presidential cuff links and his hailed by the crooked scum in Washington as this uber smart good guy that our economy just can't do without.

Sprott, in the face of a totally biased media has shouted out that in the face of the aforementioned crimes that people should protect their assets in time tested money.  He has courageously and methodically explained his sound investment thesis, and as a result of the rampant manipulation, his board has lost faith in him, and someone on the board of the firm that bears his name, one Mr. Grosskopf, mocks his new role as cheerleading.

The owners of Sriracha face extortion from the government while companies like Monsanto pay bribes and get their GMO poison into to the food chain.  So a small business with a seemingly loyal customer base is chastized because people walking by may experiece a few tears in their eyes, while a company with a long history of death and poisoning is allowed to march on.

When I was growing up, America was a nice place to live.  We did not live in fear of the government, terrorists, poison food, global warming, the NSA, none of it.

We have 535 members of Congress with a 7% approval rating.  That means we only approve of 37 ½ of them I guess, but I couldn’t pick out 37 ½ of them that I approve of.

We once were a hardworking, productive nation.  We saved money.  Now we have massive unemployment, 47 million on food stamps, and no savings.  It has become so bad, that it isn’t even smart to save money when the inflation rate far outstrips the interest on savings.  Not one of the 535 asks what changed?  They only ask what they can change.  Why can’t we go back to the policies that were in place when we had the most productive economy in the world?

We had the best education system in the world.  Where all you needed was a High School education to reach the middle class and live a decent life.  We now have a shameful education system where everyone goes to college on a credit card and none of them can find a job when they are done.  Not one of the 535 asks what changed?  They only ask what they can change.  Why can’t we go back to the policies that were in place when we were the best?

We had the best healthcare system in the world.  People came to America the world over for life saving procedures, affordable, practical.  Now we have Obamacare, Big Pharma, and Doctors that are just glorified pill pushers.  Not one of the 535 asks what changed?  They only ask what they can change.  Why can’t we go back to what we did when we had healthcare that was the envy of the world?

We were the breadbasket of the world.  We produced food, real food, for the entire world.  Now we produce GMO monster food, antibiotic laced meat, and are destroying our farmland with chemical crap.  Not one of the 535 asks what changed?  They only ask what they can change.  Why can’t we go back to healthy food on every table?

Our government talks about all of these things like they are so complicated when we’ve been there and done that in grand fashion.  Why is it such a mystery how to fix all of these systems when it is as simple as doing what we did before?  Hmmmmm

So here is my winning campaign slogan for the next election cycle:

2014- Unchange, Backward! 

Because it seems that several decades of acting on the opposite has caused us to live in opposite world, where Sprott is mocked and Cal can't get his freaking hot sauce!

Pining 4 the Fjords's picture

And it makes you wonder, at what level will the buck stop?

The local cities drive businesses out and mismanage their finances, then when they go under, essential duties (police, fire, water, sewer) devolve to a neighboring city.  Then when this fails, the burden and bills go to the county.  Then ultimately to Sacramento. Which is carrying a current debt load of 132 billion dollars.  Additionally, A study by the Stanford Institute for Economic Policy Research more recently pegged the combined total unfunded pension liabilities of CalPERS, the California State Teachers Retirement System (CalSTRS) and the University of California retirement plan at $485 billion.

And that roughly 600 billion in debt and unfunded liabilities doesn't include local municipal debt or unfunded municipal pension obligations. 

The next level to kick this can to would be the Federal Government.  I cannot wait to hear how people in Tennessee are racist teabaggers for not wanting their earnings appropriated to pay A retired librarian in San Diego  a $234,000 annual pension.  Or how folks in Nebraska are just reactionary rednecks for balking at having their income seized to pay A Newport Beach lifeguard to retire at age 51 with a $108,000 annual pension plus health-care benefits.  I am quite certain our national media will explain to us why those fly-over hillbillies need to shut the f*ck up and do their part. 

DollarMenu2's picture

Too sad...

This is a very sad state of affairs.
Maybe Mr. Tran could use kickstarter to help raise money for legal fees/bribes?

OT:Anyone surprised by the big drop in PMs this morning? (AU down $30+, AG down $.64)
(I miss the cents sign on my keyboard).

oneagleswings's picture

we all fall down

If the general private industry employees of all income levels would spend one weekend to look up public employees pay and pension and benefits then maybe,  just maybe some of us would get off our ass and run for local office and start to change things.  There is an Illionois State Prison official who makes 110K a year who has 24 arrests on his record including some gun and resisiting arrest charges.  How is that possible?  Oh,  he was a friend of an exgovernor who is currently serving prison time.  All public employees wages and benefits are available on line.  If we want change it has to start locally because that is where we live.   It is broken,  very broken and if we want it fixed we must fix it ourselves.  School board,  city hall,  county seat, then state then federal.  It will take time and it took time to get this broken.  It will always be easier to tear down than to build up but if we don't start soon we will be hopelessly broken.

tyberious's picture

totally unrelated but interesting, none the less

Thorium Nukes ~ Bill Still Repot

 

There is a cheaper, safer way to produce unlimited amounts of nuke-based energy. The world could go to Thorium. It's clean, cheap and safe.

tyberious's picture

Can we get an impeachment?

Insiders Reveal Obama Framed Assad for Chemical Weapons Attack

by Kris Zane, Western Journalism:

Top Secrets documents and high-level insiders in the Pentagon and CIA reveal that Obama, using doctored Syrian army communications, framed Syrian strongman Bashar al-Assad for the August 21, 2013 chemical weapons attack.

According to Pulitzer Prize-winning author Seymour Hersh, it was actually the al-Qaeda-linked Syrian rebel group al-Nusra—funded by Obama—trained by none other than our own CIA—and not al-Assad—who was behind the attack.

Shockingly, this was known by Obama hours after the attack.

But it gets worse.

Read More @ WesternJournalism.com

tyberious's picture

When will the madness stop?

Keiser Report: US oil vigil for price of Cold War

from RussiaToday:

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss Commie-Pus and the $8 trillion wasted by the US taxpayer in protecting the flow of oil out of the Strait of Hormuz where more than 50% heads to Asia. In the second half, Max interviews Liam Halligan of Telegraph.co.uk about the Chancellor’s Autumn Statement and mis-statements, about Liam’s forecast for Russia to be the largest economy in Europe by 2020 and they ask whether or not the Iran peace deal means Saudi Arabia is just not that important in a post-peak world.

abguy4's picture

@dollarmenu2

I posted a couple daze ago that we could expect immense volatility, at the bottom.

--As they bounce us across the bottom of the hull, to flush out every hang-er-on-er that is trying to hold his breathe thru the keel-hualing, to get us all into capitulation

Get their hopes up big......knock 'em down even bigger.....wash...rinse...repeat.

As I put my mind inside the head of a psychopathic bone-us driven HFT MBA brainwashed pimp @ JPM I see they want to clear the pool of every dead body they've made, before they swallow the whole thing for themselves, and the thievin pack of hyenas from Hell that they work for.

TreeTop Dweller's picture

Mercy Me!

I am starting to take this personally!

First you mess with my Silver...

Now you want to manipulate my Sriracha!

Not going to take this anymore.

Mr. Fix's picture

Another day, another slam down…:(

GOLD & SILVER CRUSHED BACK TOWARDS JUNE LOWS

Gold & silver have been monkey hammered this morning on no news, with gold slammed through support at $1250 gapping down to $1230, and silver smashed back under $20, with a last of $19.55! 
With Bernanke’s last FOMC meeting coming next Tuesday and Wednesday, it is appearing more and more likely that the cartel is preparing to attempt to force gold and silver below their June 28th lows of $1178 and $18, and initiating a cascade of algo stop selling. [Read more...]

Mr. Fix's picture

Welcome to my world:

This story exemplifies a reoccurring theme in my life,  whereby authorities have run me out of business for no better reason than that they weren't getting their cut.

The regulatory environment in the United States has destroyed the American dream.

Unfortunately, there's no place to run, and no place to hide,

The Evil Empire must be defeated, or something similar to this will happen to every entrepreneur  alive. 

Although it sounds blatantly paradoxical, the only way to survive in small business nowadays, is to make sure nobody knows you're running one. 

realitybiter's picture

Hot Sauce

Jamie Dimon don't need no Kalifornia hot sauce. His personal chef makes it fresh every moment he might desire it. Has the Chiles flown in from his personal garden in Mexico - on the G5 natch!

Ah, you 99%-ers can do without! The reaping awaits! One product at a time. Your petty city powerlords can whip it out every now and then just to show who's boss..they win small battles here and there, but..even they await their reaping, as they are unwittingly onerously and utterly dependent on one thing - the currency.....its the 5% vs the 2% while the other 92% enjoy the comforts of their heads up their arses....and those 1%???? Unless you are the 1% OF THE 1%, you will likely get your eye full of hot sauce too......

I agree that Houston, Texas in general (good weather for fresh Chiles), would be a smart relocation choice.....however....seeing that the entire US is unfriendly to business why not consider an entirely different location - and your namesake - Chile.

This company may be a great cornerstone for KAL LAW's enterprise freedom zone?

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