Dive Brief:
- Private equity firm Skky Partners, founded by Kim Kardashian and business partner Jay Sammons, on Tuesday said it reached an agreement to acquire a “significant minority stake” in truffle-infused hot sauce and condiment brand Truff.
- It is the first capital investment for Skky, which launched last year aiming to make minority investments in consumer goods companies. Truff “singlehandedly brought truffle-infused products into the mainstream food scene,” and has the potential for continued growth, Kardashian said in a statement.
- The investment comes as premium hot sauce offerings — particularly with unique, trendy flavors and ingredients — grow in popularity along with the broader spicy foods category. Financial terms for the deal were not disclosed.
Dive Insight:
With the endorsement of a major celebrity and businesswoman like Kardashian, Truff has the ability to grow its brand recognition even further with mainstream consumers.
Founded in 2017, the Truff brand sells “luxury” truffle-infused hot sauce, pasta sauce, mayonnaise, oil and salt, which are available in over 20,000 stores nationwide. It saw a significant boost in popularity on social media in recent years and grew a dedicated fanbase, with its @sauce Instagram handle. Truff has also collaborated with major brands including Clorox’s Hidden Valley Ranch, with a limited edition Truffle Ranch product in 2022.
The success of Truff follows spicy flavors gaining more prominence, particularly with younger consumers. A Datassential report earlier this year found milennials and Gen Z are the first generations to prefer Mexican food to Italian.
The hot sauce category is projected to be worth over $5 billion by 2030, growing at a compound annual growth rate of 7.42%, according to Fortune Business Insights.
While a select few hot sauce brands like Tabasco have enjoyed mainstream success in the past, the growth of the category continues to bring more players into the fold, touting distinctive flavors and occasions.
Casa Firelli, which is produced in Italy and contains Calabrian chili peppers, debuted in 2021 touting a savory, tangy heat that pairs well with pizza. In 2022, Firelli rolled out Truffle and Extra Hot Sauce offerings.
Legacy CPG companies are also feeling the heat by leaning into the growing desire for premium, spicier sauces. Kraft Heinz debuted a line of premium sauces and spreads in 2022 under the Heinz 57 banner, which includes Hot Chili and Black Truffle Infused Honey items. Earlier this year, the company unveiled a line of Spicy Ketchup items, adding spice from chipotle, habanero and jalapeño peppers, along with a jalapeño-based Hot 57 Sauce.
