XO is ready to expand its business into the US market after Huy Fong Foods suspends production of the world’s most popular hot sauce Sriracha for five months due to ‘severe’ chili shortage.
Jittiporn Jantarach, managing director of Exotic Food Public Company Limited (SET: XO), has given an exclusive interview to Kaohoon via “Kaohoon Jor Talad Program” on June 14, 2022, stating that the Company has a positive outlook for sales in the second quarter of 2022, and that it is anticipated to deliver a higher return than in the first quarter of 2022 due to a continued growth order.
Moreover, after exhibiting at THAIFEX-ANUGA ASIA 2022 in May, XO has seen increased interest from customers in the United States. Previously, less than 1 percent of XO’s orders originated in the United States.
Jittiporn said that an increase in US clients was likely the result of Huy Fong Foods halting production due to a severe scarcity of chili, which forced a major US sauce manufacturer to stop taking orders from April 2022 and postpone delivery until September.
Huy Fong Foods, an American hot sauce company based in California, USA, halted sales and production of its famous sriracha sauce due to weather conditions affecting chili pepper quality, according to foreign reports last week.
Back in April, Huy Fong Foods sent an email to inform its customers that they are facing “a more severe shortage of chili” compared to a similar situation in July 2020. As a result, all orders placed on or after April 19 will be scheduled after Labor Day (Septeptem 6) in the order they were received.
As of 10.30 hrs. local time in Thailand, the share price of XO rose THB1.30/share or 8.13 percent to THB17.30/share, with a trading value of THB66 million.