Business
Momofuku responds to chili crunch backlash: 'We wanted a name we could own'
Imagine walking into a grocery store and seeing a single brand of each item. Identical squeeze bottles of “Ketchup.” One company’s “Mustard.” One brand of “Salsa.” Just one maker’s “Hot Sauce.” What a bland world it would be.
If Momofuku has its way, the only “Chili Crunch” on store shelves will bear the name Momofuku.
Momofuku, founded by chef David Chang, acquired the rights to use “chile crunch,” spelled with an “e,” last year from Chile Colonial LLC, a Denver company that registered the trademark in 2015 with the United States Patent and Trademark Office after making a Mexican-inspired chile crunch sauce since 2008. Then on March 29, Momofuku filed a trademark application for the term “chili crunch,” spelled with an “i,” and started sending cease and desist orders to multiple businesses selling chili crunch products, the Guardian first reported.
Social media backlash immediately followed. Actor Simu Liu, who serves as the chief content officer for MìLà, a food and beverage company that makes frozen dumplings and chili crunch, challenged Momofuku to a blind taste test on Twitter last week: “Winner keeps the name, loser (it’ll be you) backs off.”
In a statement to The Times, a spokesperson for Momofuku said the company has seen multiple chili crisp products rebranded as chili crunch over the last year, and that the trademark was never intended to “stifle innovation in a category that we care deeply about.”
“When we created our product, we wanted a name we could own and intentionally picked ‘Chili Crunch’ to further differentiate it from the broader chili crisp category,” the spokesperson wrote in an email. “We worked with a family-owned company called Chile Colonial to purchase the trademark from them. They have defended the trademark previously against companies like Trader Joe’s.”
One of the voices critical of Momofuku threatening legal action against other chile sauce businesses was Fly by Jing chef and entrepreneur Jing Gao. She started bottling Sichuan chili crisp in 2018, and is often credited as the catalyst for the mainstreaming of chili crisp. She is also an investor and advisor in Homiah, one of the brands that received a cease and desist letter.
Gao’s own company, as multiple outlets reported, filed to trademark “Sichuan Chili Crisp” in 2019 only to see its application dismissed in 2020.
“The ‘chile crunch’ trademark should also not have been granted,” wrote Gao in a Substack newsletter titled “On Trademark Bullies.” “It is a descriptive term for a cultural product, one that has existed in Chinese cuisine for hundreds of years.”
What the newsletter and other stories did not mention , however, is that last week, on April 3, Fly by Jing filed again to trademark “Sichuan Chili Crisp,” according to the U.S. Patent and Trade Office. Then on Monday, Gao said in a statement to The Times that she requested to withdraw the application.
Gao said Fly by Jing reapplied for “Sichuan Chili Crisp” as well as “Chengdu Crunch” “to safeguard against the potential that we need to defend ourselves against a larger power that may be threatened by our existence. In light of the events of the last two days however, we now believe that there’s been enough awareness raised about the descriptive nature of the term, that the USPTO will reconsider the chili/chile crunch trademarks, and we felt comfortable with filing a request to abandon the application for our product’s name, which we have already done as of Saturday.”
“Even if we were granted the trademark for Sichuan Chili Crisp, which we have now abandoned, Fly By Jing would not have used it to intimidate small businesses,” wrote Jing.
Yet if Fly by Jing had been granted a trademark, the company would be responsible for enforcing it, as outlined by the United States Patent and Trademark Office. By not protecting your trademark, you could lose it.
If I had my way, neither term would be trademarked.
David Tran, founder of the Huy Fong Foods Sriracha sauce, never sought to exclusively own the term “Sriracha.” Instead, he trademarked his signature rooster logo and bottle.
I reject the notion that someone could exclusively own something so ingrained in my culture, a food I consider an intrinsic part of my identity. These trademarks will limit who can profit off a food with a connection to entire cultures. It would be like someone trying to trademark salsa macha and salsa verde. Wait, inexplicably somebody did trademark salsa verde, signaling a serious problem with the USPTO lacking the knowledge to accurately or fairly determine what’s descriptive or confusing when it comes to certain foods.
I, like many Chinese Americans, feel a sense of pride and ownership over the condiment typically made with garlic, other alliums, chiles and oil. Whether you call it crisp, oil, crunch or sauce, it’s a condiment that’s integral to the cuisines, cultures and experiences of Asian Americans around the world.
Michelle Tew, founder and CEO of Homiah foods, called receiving her cease and desist letter a “punch in the gut.”
“Homiah’s Sambal Chili Crunch product is personal and based on a family recipe from my Granny Nonie dating back to countless generations of Nyonya heritage in Penang, Malaysia,” Tew wrote in a statement on LinkedIn. “I was shocked and disappointed that a well-known and respected player in the Asian food industry would legally threaten me — a one-woman show operating on a much smaller scale — from selling a product that is part of my family’s history and culture.”
The move to trademark “chili crunch,” whether intentional or not, will only serve to whitewash an entire genre of chile sauces. Although some of the sauce companies have strong financial backing — according to Forbes, Momofuku raised $17.5 million in funding last year with $50 million in sales, MìLà recently raised $22.5 million and Fly by Jing raised 12 million last year — many of these products are made by small AAPI-owned companies.
All deserve a piece of the more than $3 billion hot sauce industry in the United States. And that number is expected to nearly double in the next decade, according to a market report by Fortune Business Insights.
Melody and Russ Stein’s pizza company Pi00a (pronounced pie-oh-ah) started selling jars of chili crunch when they launched a ghost kitchen in Koreatown last year with their children, Taysia and Rylan. Pi00a is a Deaf- and family-owned business, selling Neapolitan pizzas with Asian influences and a mission to provide jobs for the hard of hearing.
For a soppressata pizza, Melody came up with her own version of chili crunch, something “sweet and spicy” that goes with the Italian dry salume, she said over the phone with her daughter as interpreter. “People liked it and started asking for jars of it,” and Pi00a now sells about 100 jars a week through its online business and 40 retailers.
“We just started our small business, it costs a lot of money to rebrand. It’s very difficult to absorb any added expense. We just hope [Momofuku] realizes the impact this has on the community and they drop the trademarks.”
Kansas City chef James Chang, who makes a chili crunch of his own, wrote in an Instagram post referencing the cease and desist letters, “While I have not received one yet it’s only a matter of time. … For someone that has railed against how ethnic aisles in grocery stores do not have enough minority-owned brands [David Chang] is doing just the goddamn same. Instead of creating a community he wants to create a monopoly.”
You can find a jar of chile sauce that’s half oil, half chile-and-garlic sediment on the tables at most restaurants serving dumplings in the San Gabriel Valley. Many make the sauce themselves.
Before it was a trendy condiment found at every superette (and even Costco), there were half-empty jars of Lao Gan Ma spicy chili crisp with crust around the lids in my fridge and on my family dinner table. My Chinese grandmother and uncle introduced me to Lao Gan Ma spicy chili crisp in the late ‘90s. It’s a sludge-like combination of dried chiles, crispy onions, MSG and fermented soybeans. For years I called it chili crunchy. I could never remember the name, and simply asked for more of that “chili crunchy stuff with the stern lady.”
The sauce was created by Tao Huabi in Guizhou, China, in 1984. Hers is the face on every bottle.
Nearly a decade ago, I brought Lao Gan Ma to a hot sauce taste-off with the late Jonathan Gold and Kogi BBQ chef Roy Choi. The chili crunchy stuff with the stern lady on the bottle was the clear winner.
“Sauce invented by our ancestors, our version perfected for 30+ years … ,” wrote the makers of Bowl Cut chili crisp on Instagram. “No one should own a trademark for the description of a sauce that’s been around forever.”
Chili crunch belongs to everyone.
Deputy Food editor Betty Hallock contributed to this report.
Business
As wildfires rage, private firefighters join the fight for the fortunate few
When devastating wildfires erupted across Los Angeles County this week, David Torgerson’s team of firefighters went to work.
The thousands of city, county and state firefighters dispatched to battle the blazes went wherever they were needed. The crews from Torgerson’s Wildfire Defense Systems, however, set out for particular addresses. Armed with hoses, fire-blocking gel and their own water supply, the Montana-based outfit contracts with insurance companies to defend the homes of customers who buy policies that include their services.
It’s a win-win if the private firefighters succeed in saving a home, said Torgerson, the company’s founder and executive chairman. The homeowner keeps their home and the insurance company doesn’t have to make a hefty payout to rebuild.
“It makes good sense,” he said. “It’s always better if the homes and businesses don’t burn.”
Torgerson’s operation, which has been contracting with insurance companies since 2008 and employs hundreds of firefighters, engineers and other staff, highlights a lesser-known component of fighting wildfires in the U.S. Along with the more than 7,500 publicly funded firefighters and emergency personnel dispatched to the current conflagrations, which have burned more than 30,000 acres and destroyed more than 9,000 structures, a smaller force of for-hire professionals is on the fire lines for insurance companies, wealthy individual property owners or government agencies in need of additional hands.
Their presence isn’t without controversy. Private firefighters hired by homeowners directly have drawn criticism for heightening class divides during disasters. This week, a Pacific Palisades homeowner received backlash for putting a call out on X, the social media site formerly named Twitter, for help finding private firefighters who could save his home.
“Does anyone have access to private firefighters to protect our home in Pacific Palisades? Need to act fast here. All neighbors houses burning,” he wrote in the since-deleted post. “Will pay any amount.”
“The epitome of nerve and tone deaf!” someone replied.
In 2018, Kim Kardashian and Kanye West credited private firefighters for saving their $60-million home in the Santa Monica mountains during a wildfire. But those who serve wealthy clients make up only a small fraction of nonpublic firefighters, according to Torgerson.
“Contract firefighters who are hired by the government are the vast majority,” he said. The federal government has been hiring private firefighters since the 1980s to support its own forces. According to the National Wildfire Suppression Assn., there are about 250 private sector fire response companies under federal contract, adding about 10,000 firefighters to U.S. efforts.
Some private firefighting companies, including Wildfire Defense Systems, are known as Qualified Insurance Resources and are paid by insurance companies to protect the homes of their customers. Wildfire Defense Systems refers to its on-the-ground forces as private sector wildfire personnel.
Wildfire Defense Systems only works with the insurance industry, but other privately held firefighting companies contract with industrial clients such as petrochemical facilities and utility providers. Wildfire Defense Systems declined to disclose company revenue or what it charges for its services.
Allied Disaster Defense, a company that has sent personnel to the fires in Los Angeles, offers services to both property owners and insurance companies. Its website says its services will “enhance the insurability of properties” and “contribute to reduced claims.”
The website also has a page dedicated to services for private clients, which include emergency response and assistance with insurance claims for “high net-worth and celebrity” customers. The company does not list prices for its services and has nondisclosure agreements with its private clients.
Several other private firefighting companies are based in California, including Mt. Adams Wildfire, which contracts with government agencies, and UrbnTek, which serves Los Angeles, Orange County and San Diego among other areas. Along with spraying fire retardant on trees and brush to stop an advancing fire, the company offers “a double layer of protection by wrapping a structure with our fire blanket system.”
Torgerson, a civil engineer with 34 years in emergency services, said he has been struck by the speed of the current wildfires. While typically it takes two to 10 minutes for a fire to sweep through a home, he said, the Palisades fire is traveling at higher speeds.
“It’s moving so fast, it’ll likely take one to two minutes for these fires to pass over the properties,” he said.
He said his company responded to all 62 of the wildfires that threatened structures in California in 2024 and didn’t lose a property.
Business
As Delta Reports Profits, Airlines Are Optimistic About 2025
This year just got started, but it is already shaping up nicely for U.S. airlines.
After several setbacks, the industry ended 2024 in a fairly strong position because of healthy demand for tickets and the ability of several airlines to control costs and raise fares, experts said. Barring any big problems, airlines — especially the largest ones — should enjoy a great year, analysts said.
“I think it’s going to be pretty blue skies,” said Tom Fitzgerald, an airline industry analyst for the investment bank TD Cowen.
In recent weeks, many major airlines upgraded forecasts for the all-important last three months of the year. And on Friday, Delta Air Lines said it collected more than $15.5 billion in revenue in the fourth quarter of 2024, a record.
“As we move into 2025, we expect strong demand for travel to continue,” Delta’s chief executive, Ed Bastian, said in a statement. That put the airline on track to “deliver the best financial year in Delta’s 100-year history,” he said.
The airline also beat analysts’ profit estimates and said it expected earnings per share, a measure of profitability, to rise more than 10 percent this year.
Delta’s upbeat report offers a preview of what are expected to be similarly rosy updates from other carriers that will report earnings in the next few weeks. That should come as welcome news to an industry that has been stifled by various challenges even as demand for travel has rocketed back after the pandemic.
“For the last five years, it’s felt like every bird in the sky was a black swan,” said Ravi Shanker, an analyst focused on airlines at Morgan Stanley. “But it appears that this industry does have its ducks in a row.”
That is, of course, if everything goes according to plan, which it rarely does. Geopolitics, terrorist attacks, air safety problems and, perhaps most important, an economic downturn could tank demand for travel. Rising costs, particularly for jet fuel, could erode profits. Or the industry could face problems like a supply chain disruption that limits availability of new planes or makes it harder to repair older ones.
Early last year, a panel blew off a Boeing 737 Max during an Alaska Airlines flight, resurfacing concerns about the safety of the manufacturer’s planes, which are used on most flights operated by U.S. airlines, according to Cirium, an aviation data firm.
The incident forced Boeing to slow production and delay deliveries of jets. That disrupted the plans of some airlines that had hoped to carry more passengers. And there was little airlines could do to adjust because the world’s largest jet manufacturer, Airbus, didn’t have the capacity to pick up the slack — both it and Boeing have long order backlogs. In addition, some Airbus planes were afflicted by an engine problem that has forced carriers to pull the jets out of service for inspections.
There was other tumult, too. Spirit Airlines filed for bankruptcy. A brief technology outage wreaked havoc on many airlines, disrupting travel and resulting in thousands of canceled flights in the heart of the busy summer season. And during the summer, smaller airlines flooded popular domestic routes with seats, squeezing profits during what is normally the most lucrative time of year.
But the industry’s financial position started improving when airlines reduced the number of flights and seats. While that was bad for travelers, it lifted fares and profits for airlines.
“You’re in a demand-over-supply imbalance, which gives the industry pricing power,” said Andrew Didora, an analyst at the Bank of America.
At the same time, airlines have been trying to improve their businesses. American Airlines overhauled a sales strategy that had frustrated corporate customers, helping it win back some travelers. Southwest Airlines made changes aimed at lowering costs and increasing profits after a push by the hedge fund Elliott Management. And JetBlue Airways unveiled a strategy with similar aims, after a less contentious battle with the investor Carl C. Icahn.
Those improvements and industry trends, along with the stabilization of fuel, labor and other costs, have created the conditions for what could be a banner 2025. “All of this is the best setup we’ve had in decades,” Mr. Shanker said.
That won’t materialize right away, though. Travel demand tends to be subdued in the winter. But business trips pick up somewhat, driven by events like this week’s Consumer Electronics Show in Las Vegas.
The positive outlook for 2025 is probably strongest for the largest U.S. airlines — Delta, United and American. All three are well positioned to take advantage of buoyant trends, including steadily rebounding business travel and customers who are eager to spend more on better seats and international flights.
But some smaller airlines may do well, too. JetBlue, Alaska Airlines and others have been adding more premium seats, which should help lift profits.
While he is optimistic overall, Mr. Shanker acknowledged that the industry was vulnerable to a host of potential problems.
“I mean, this time last year you were talking about doors falling off planes,” he said. “So who knows what might happen.”
Business
Insurance commissioner issues moratorium on home policy cancellations in fire zones
California Insurance Commissioner Ricardo Lara has issued a moratorium that bars insurers from canceling or non-renewing home policies in the Pacific Palisades and the San Gabriel Valley’s Eaton fire zones.
The moratorium, issued Thursday, protects homeowners living within the perimeter of the fire and in adjoining ZIP codes from losing their policies for one year, starting from when Gov. Gavin Newsom declared a state of emergency on Wednesday.
The moratoriums, provided for under state law, are typically issued after large fires and apply to all policyholders regardless of whether they have suffered a loss.
Lara also urged insurers to pause for six months any pending non-renewals or cancellations that were issued up to 90 days before Jan. 7 that were to take effect after the start of the fires — something he does not have authority to prohibit.
“I call upon all property insurance companies to halt these non-renewals and cancellations and provide essential stability for our communities, allowing consumers to focus on what’s important at the moment — their safety and recovery,” said Lara on Friday during a press conference in downtown Los Angeles.
Insurance companies in California have wide latitude to not renew home policies after they expire, though they must provide at least 75 days’ notice. However, policies in force can be canceled only for reasons such as non-payment and fraud.
Insurers have dropped hundreds of thousands of policyholders across California in recent years citing the increasing risk and severity of wind-driven wildfires attributed to climate change. The insurance department said residents living in fire zones can be subject to sudden non-renewals, prompting the need for the moratoriums.
In addition, Lara asked insurers to extend to policyholders affected by the fires time to pay their premiums that go beyond the existing 60-day grace period that is mandatory under state law.
It’s not clear how many homeowners in Pacific Palisades and elsewhere might not have had coverage, but many homeowners reported that insurers had not renewed their policies before the disaster struck. State Farm last year told the Department of Insurance it would not renew 1,626 policies in Pacific Palisades when they expired, starting last July.
Residents can visit the Department of Insurance website at insurance.ca.gov to see if their ZIP codes are included in the moratorium. They can also contact the department at (800) 927-4357 or via chat or email if they think their insurer is in violation of the law.
The Pacific Palisades fire, the most destructive fire in Los Angeles history, as of Friday morning had grown to more than 20,000 acres, burning more than 5,000 homes, businesses and other buildings. It was 6% contained.
The Eaton fire, which has burned many structures in Altadena and Pasadena, has spread to nearly 14,000 acres and was 3% contained as of early Friday. Ten people have died in the fires.
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