Malaysian brand wins ‘chili crunch’ war

US food giant Momofuku backs down from trademark dispute with Homiah, other small businesses

9:00 PM MYT

 

KUALA LUMPUR – Finding itself in a PR war that’s too hot to handle, food giant Momofuku has backed off from stopping small businesses from using the name “chili crunch”.

Following an outcry and bad press after it sent dozens of cease and desist letters to mostly family-run businesses from using the name, Momofuku owned by American celebrity chef David Chang has decided it will not pursue its claims.

“Over the past week, we have heard the feedback from our community and now understand that the term ‘chili crunch’ carries broader meaning for many,” the company said in a statement.

“This situation has created a painful divide between Momofuku, the AAPI (Asian American and Pacific Islander) community we care deeply about, and other companies sharing grocery store shelves.

“But the truth is, we all want the same things: to grow, to succeed and to make America’s pantries and grocery stores a more diverse place,” it added.

Homiah’s Michelle Tew holding her products. The Malaysian entrepreneur is one of several small business owners in a legal battle with American celebrity chef David Chang over the use of the name ‘chili crunch’. However, Chang has backed down from pursuing the case. – @homiahfoods Instagram pic, April 15, 2024

The dispute went viral with Michelle Tew, the founder of Malaysian food brand Homiah, among the chief opponents.

Tew’s Peranakan chilli flake recipe is inherited from her grandmother, with the family recipe having been around since the 1940s.

Chang’s has only been made available since 2018.

Previously, Chang sought to stop the small entrepreneurs from using the name “chili crunch” or “chile crunch” on their labels to protect Momofuku’s trademark Chili Crunch sauce brand.

Malaysian brand Homiah’s ‘Sambal Chili Krnch’ product. – @homiahfoods Instagram pic, April 15, 2024

The businesses have 90 days to comply, according to the Daily Mail.

However, Momofuku doesn’t currently own the registered trademark for “chili crunch”, as it only began the filing process with the US patent office on March 29.

Chang’s opponents claim the celebrity chef is trying to control the condiment market by “trademark bullying” small businesses.

Tew said the letter she received allegedly stated that Momofuku was the sole “owner of all trademark rights” for condiments with the words “chile crunch” or “chili crunch.”

The letter informed Tew that her food product, the Homiah Sambal Chili Crunch, stylised as “Sambal Chili Krnch” – which is based on her family’s recipe – was a trademark infringement.

Tew said Momufuku was concerned that shoppers could confuse a bottle of Homiah Sambal Chili Crunch with a bottle of Momofuku Chili Crunch, despite the two condiments having dramatically different labels.

However, Momofuku’s cease-and-desist letter states that Momofuku has been “offering” its chilli crunch condiment since 2018. And bottles of their chilli crunch sauce have been available to shoppers only since 2020.

Saying she felt “betrayed” by Chang, Tew described the letter as “a punch in the gut.”

Momofuku’s ‘Chili Crunch’.– Momofuku pic, April 15, 2024

“If Kraft Heinz hit me up [with a cease-and-desist letter], it would have been distressing.

“But the fact that it was Momofuku makes me feel really, really sad,” said Tew, who credited Chang – who is of Korean descent – as having helped shepherd Asian food into the mainstream food scene.

Tew’s lawyer, Stephen Coates, described Momofuku as a “trademark bully.”

“This is a clear case of them picking on small businesses with a letter campaign, hoping they’ll cave because of the financial pressure,” he said.

“If a small competitor caves under legal pressure and drops the ‘chili crunch’ language from their product, Momofuku’s sauce will appear more distinct, which will, in turn, help them in their mission to secure a registered trademark,” he added.

Both brands retail their chilli crunch at around US$13 (approximately RM62) a jar. However, Momofuku’s is a 150g jar while Homiah’s weights 250g.

In 2022, Momofuku took legal action against Manhattan restaurant Yuzu Kitchen for trademark infringement but later dropped the claim.

Yuzu Kitchen has since closed, but Momofuku continues to grow, with US$50 million (RM239 million) in sales last year. 

A Momofuku Noodle Bar branch in New York. – Momofuku Noodle Bar Facebook pic, April 15, 2024

Chang himself is worth US$60 million, with restaurants all over the US, Canada and Australia. 

He has starred in his own Netflix series “Ugly Delicious” and “Dinner Time Live with David Chang.” – April 15, 2024

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