People try that with ketchup all the time. It barely moves the needle. Sriracha, like Ketchup, is a 'cheap' product at this point. If people are going to spend 4 times as much they want something fancier.

That works, but you will have a hard time selling it at scale.

Just say small batch

They've done this, and the non-Huy Fong brands just aren't as good in an all-purpose hot sauce way.

Valentina black label is better for some things, though. It's not marketed as a sriracha sauce, just a Mexican hot sauce.