Hot sauce will never be replaced by AI. What about YOU?

Abhinav Jain
3 min readMar 20, 2023

Meet America’s first hot sauce billionaire: a Vietnamese refugee who built a $150M per year empire with no marketing or sales team.

How did he do it? Here’s his spicy story.

David Tran fled Vietnam in 1979 after the communist takeover. He arrived in LA with nothing but a passion for spicy food. He started making hot sauce in a bucket and selling it from his van. He named it Si Racha, after a Thai surf town where he liked the sauce.

Tran didn’t care about branding or advertising. He just focused on making the best hot sauce possible. He used fresh jalapeños instead of dried ones. He added garlic for extra flavor. He kept the ingredients simple: chili, sugar, salt, vinegar, garlic.

Tran’s hot sauce was so good that it spread by word-of-mouth. People loved its taste, texture and heat level. They put it on everything: pizza, eggs, noodles, burgers. Tran didn’t need a marketing or sales team because he had had something better: distribution. He partnered with local Asian restaurants & grocery stores. They gave him shelf space and exposure to new customers.

Early on, one of Tran’s packers suggested his product was “too spicy.” They suggested to add a tomato base to sweeten it. Friends agreed, saying it would pair better with chicken. Tran stood firm: “Hot sauce must be hot… We don’t make mayonnaise here.”

Tran’s hot sauce became a cult phenomenon among foodies and chefs. It was featured in magazines like Bon Appétit. It was praised by celebrities like Obama.

Tran’s hot sauce became an icon of multiculturalism and diversity in America. It represented an immigrant who pursued his dream despite all odds. It appealed to people from different backgrounds who loved spicy food. It embodied “Made in USA” with an ethnic twist.

Today, Sriracha is one of the most popular condiments in the world. It sells over 20 million bottles per year. It generates over $150 million in annual revenue. And it’s still demand constrained.

Tran focuses on getting the best out of his ingredients. The short ripening window for Jalapeños means the company has a tight window for production. It makes a year’s supply in 10 weeks, running its huge facility 16 hours a day.

Tran’s net worth is $1.2 billion, according to Forbes. He still owns 100% of his company, Huy Fong Foods (which he named after the ship that brought him to the US). He still works at his factory in Irwindale, California. He still wears the same blue shirt and hat every day.

Tran’s secret to success is simple: make a product that people love and can’t get enough of. He doesn’t care about trends or competitors. He doesn’t chase growth or profits. He just follows his passion:

“I don’t make hot sauce for money. I make money for hot sauce.”

Around 90% of start-ups fail. Yours doesn’t have to.

Over the past decade, the public sentiment for entrepreneurship has shifted massively. While this has greatly benefited the ecosystem, it has also made a lot of people blind to how difficult a founder’s journey is. Starting a business is the easy part; a founder’s mettle is tested when it is time to scale the business and conquer markets. This is why maximum shutdowns are witnessed in the 5 years of a company when founders need to scale aggressively to establish a foothold within their respective sectors.

Mentorship is often a great way to deal with these hiccups effectively. However, a lot of founders often lack access to great people who can help them during the initial stages of their journey.

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