November 23, 2023
On Tuesday, November 20, private equity firm Skky Partners—founded by Kim Kardashian and business partner Jay Sammons—announced that it had reached an agreement to acquire a “significant minority stake” in truffle-infused hot sauce and condiment brand Truff, reports Food Dive.
This represents the first capital investment for Skky, which launched last year—aiming to make minority investments in consumer goods companies. Financial terms for the deal were not disclosed.
Truff “singlehandedly brought truffle-infused products into the mainstream food scene,” and has the potential for continued growth, Kardashian said in a statement.
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.
The success of Truff follows spicy flavors gaining more prominence, particularly with younger consumers. A Datassential report earlier this year found that 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.
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.
Research contact: @FoodDive