On a positive note (about the only one I can think of), an alternative buyer to Huy Fong should not be difficult to secure. Jan is already selling into the Mexican market. Even the realistic possibility of negotiating much better terms than the HF deal. The biggest appeal of the HF deal (imo) was the company’s name recognition and the possibility of growing the relationship exponentially during the next several years.
On the downside, it’s not wise for any company, semiconductor manufacturer or pepper grower, to “put all of their eggs in 1 basket.” HF has/had the ability to exert too much control over the relationship. Just look at the Underwood Ranches lawsuit with Huy Fong. Underwood looks good to eventually prevail, but how much time and $ in litigation fees will it take?
So, if all the existing and new negative developments, I think that the end of the Huy Fong relationship ranks as least damaging.
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