Espelette Powder Named from the Southwest city of France where it is grown. Espelette is reputed for its dried red peppers, used whole or ground to a mild hot powder. It is extensively used in the production of Bayonne ham. The peppers are designated as AOC - Appellation d'Origine Contr?l_e - and are hung to dry outside many of the houses and shops in the village during the summer. The peppers are sold in the town's covered market on Wednesdays. Every year on the last Sunday in October a festival is held to celebrate the famous red peppers.