An Iowa-based hot sauce company is suing one of its manufacturers, alleging it turned out bottled products that bubbled, fermented and exploded.

Lola’s Fine Sauces of West Des Moines is suing Ecoideas Innovation Inc. of Canada, in U.S. District Court for the Southern District of Iowa, alleging it has incurred $700,000 in damages due to Ecoideas’ breach of contract.

In court filings, Lola’s says that for the past 10 years, it has produced a variety of hot sauces and salsas using fresh and unique ingredients. In the process, the company says, it has grown from a farmer’s market stand to a large company that sells its products throughout the nation at retailers such as Target, Walmart and other grocery stores and supermarkets.

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In 2023, Lola’s alleges, it attempted to address growing demand for its product by entering into a contract with Ecoideas to manufacture “mini bottles” of certain Lola’s sauces for distribution to retailers. Ecoideas allegedly promised it had the ability to meet Lola’s need for more than 1 million units that met stringent production standards.

Lola’s alleges that in 2024, Ecoideas breached the contract by failing to prepare labels and products in the manner required. As a result, the lawsuit claims, Walmart was forced to remove defective products from shelves, and Lola’s incurred nearly $155,000 in expenses.

In addition, the lawsuit alleges, there were “issues with defective goods and raw materials that were unusable” due to a failure to follow protocols, resulting in an additional $20,000 in losses.

In 2025, issues allegedly arose with Lola’s Mango Scotch Bonnet products. “Several calls, emails, messages, YouTube videos, and complaints came flooding into Lola’s due to a manufacturing issue in which bottles were bubbling, exploding and fermenting,” the lawsuit claims. “Sauce in several of the bottles also was discolored, and the taste was not in line with Lola’s standards.”

Over the years, some brands of hot sauce are known to have had issues with bottles exploding on shelves due to a buildup of gas caused by fermentation in improperly processed sauces.

In the lawsuit, Lola’s states that it “appears that Ecoideas failed to fill the bottles at correct temperatures and/or utilize a correct bottle-fill process.” Although those issues did not present any food-safety or health risks, the lawsuit alleges, they significantly affected taste and customer satisfaction.

In total, Lola’s alleges it has suffered reputational harm, plus $700,000 in out-of-pocket costs and product-disposal and shipping fees, and has struggled with retailer chargebacks and lost inventory.

According to the lawsuit, Ecoideas has acknowledged its breach of contract and promised to take remedial action, such as filing an insurance claim and reimbursing Lola’s for losses, but has failed to follow through.

“Ecoideas is now claiming it has no insurance coverage,” the lawsuit alleges, and it “has not reimbursed Lola’s for any costs.”

Ecoideas has yet to file a response to the lawsuit, which was filed in Polk County District Court before being transferred this week to U.S. District Court. The Iowa Capital Dispatch was unable to reach company officials or their Iowa attorneys on Thursday.