​Sugarmade’s Sriracha Stix Shaking Up the Red-Hot Seasoning Market

Diversifying palates have brought words from relative obscurity to commonplace today from coast-to-coast. Consider things like chipotle and Sriracha, spicy components to the food industry that most had never heard of a decade or so ago. Now, they’re known by nearly everyone. In the Sriracha space, the number one name is Huy Fong Foods, with the company selling some 20 million bottles annually by 2013 and still showing up on top in a Google search for the chili sauce today. The company is as synonymous a household name with the hot sauce as Band Aid is to adhesive bandages.

In the latest twist in Sriracha, Sugarmade, Inc. (SGMD) uses a licensing pact with its fellow California-based company and Huy Fong’s Sriracha Hot Chili Sauce for an innovative product being marketed as Sriracha Seasoning Stix.

The product and brand marketing company is turning the art of seasoning food inside out, literally. The idea is instead of seasoning the outside of steak, fish or poultry, veggie burgers, etc., Sriracha Stix, essentially solid versions of the popular Huy Fong seasoning, are inserted inside the food before cooking. As the company explains, “At approximately 110°F (43°C) food science takes over. As the cooking process drives out some of the water from the meat fibers, the Stixs begin to liquefy. The meat then absorbs the seasonings like a sponge imparting flavors from the inside out.”

On Wednesday, Sugarmade said that the new product is officially available to all from the website www.SrirachaStix.com. In order to help fund the launch, Sugarmade ran a successful Kickstarter campaign, which exceeded its $20,000 target with 350 backers pledging nearly $22,000.

The new product line includes four unique blends: Classic Sriracha, Sriracha Butter Garlic, Garlic Jalapeno and Blend X, an extra bold iteration that the company says caters to the true spicy Sriracha faithful. Sugarmade chief executive Jimmy Chan told the public to “stay tuned” for additional blends in the future, as the possible flavor combinations are virtually endless.

Sugarmade is looking to capitalize on a market phenomenon that has reach cult-like status with American’s – especially millennials – craving spicy flavors. There was good cause for restaurants like McDonald’s (MCD), Subway and Chick-fil-A to make sure it’s part of customers’ options. Everyone is looking to get a piece of a U.S. hot sauce market that IBISWorld expects to grow 4.5% to hit $1.37 billion in sales this year and further climb to $1.65 billion by 2021.

With its new twist to take Sriracha from a condiment to a bona fide seasoning and culinary innovation, Sugarmade just may be onto something that customers will be lining up to reach for.

In the interest of full disclosure, we call the reader’s attention to the fact that Equities.com, Inc. is compensated by the companies profiled in the Spotlight Companies section. The purpose of these profiles is to provide awareness of these companies to investors in the micro, small-cap and growth equity community and should not in any way be considered as a recommendation to buy, sell or hold these securities. Equities.com is not a registered broker dealer, investment advisor, financial analyst, investment banker or other investment professional. We are a publisher of original and third party news and information. All profiles are based on information that is available to the public. The information contained herein should not be considered to be complete and is not guaranteed by Equities.com to be free from misstatement or errors. The views expressed are our own and not intended to be the basis for any investment decision. Readers are reminded to do their own due diligence when researching any companies mentioned on this website. Always bear in mind that investing in early-stage companies is risky and you are encouraged to only invest an amount that you can afford to lose completely without any change in your lifestyle. Equities has been compensated with cash, common shares and/or warrants for market awareness services provided.

The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Leave a Reply

Your email address will not be published. Required fields are marked *


twelve − five =