Local
Tacolate dispute puts Salt & Straw’s Taco Bell expansion at risk
Salt & Straw says Ruby Jewel stopped making its ice cream tacos despite a contract running through 2028, jeopardizing a product the Portland company expects to sell by the millions. The lawsuit seeks more than $1 million and asks a judge to require production to continue while Salt & Straw finds another manufacturer.
Salt & Straw has sued fellow Portland company Ruby Jewel, alleging it abruptly halted production of the Tacolate ice cream taco and put the dessert’s growing distribution at risk.
The lawsuit was filed Oct. 5 in Multnomah County Circuit Court. Salt & Straw says a three-year manufacturing agreement required Ruby Jewel to make Tacolates at its Northeast Portland facility through Feb. 24, 2028. But, according to the complaint, Ruby Jewel told Salt & Straw on Oct. 2 that it was closing its manufacturing operations. Oct. 6 was to be its final production day, with manufacturing employees facing staged layoffs beginning Oct. 8.
Salt & Straw alleges Ruby Jewel had sought to renegotiate the deal and demanded about $5 million to avoid disruptions to production. Those claims have not been tested in court.
The Tacolate features cinnamon ancho chili ice cream in a hand-pressed, taco-shaped waffle cone, finished with chocolate and toasted brown rice bits. Salt & Straw introduced it at its Wiz Bang Bar in 2016, then brought it back in 2022 after the original Choco Taco was discontinued. Following a 2025 collaboration with Taco Bell and repeated sellouts, Salt & Straw made the dessert a permanent menu item.
The company says it invested more than $2 million in equipment, building work and setup for the manufacturing operation, and paid Ruby Jewel more than $1.9 million under the agreement. Tacolates are sold at Salt & Straw’s roughly 50 shops, online and through retailers including New Seasons Market and Taco Bell. The company says it expects to sell millions through its Taco Bell partnership.
Salt & Straw also says its specialized production equipment remains inside Ruby Jewel’s facility. Moving it would require installation, testing and food-safety certification, and the company alleges no qualified alternative manufacturer is immediately available.
The suit seeks more than $1 million in damages. Salt & Straw is also asking the court to order Ruby Jewel to continue production until the contract ends or Salt & Straw can move manufacturing to another qualified company.