Kim Kardashian’s PE Signs First Deal With Luxury Condiments Brand Truff

US media personality Kim Kardashian West arrives to attend the amfAR Gala New York at Cipriani Wall … [+] Street in New York City on February 6, 2019. (Photo by ANGELA WEISS / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)

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Kim Kardashian and Jay Sammons-led SKKY Partners, a private equity firm focused on high-growth consumer brands, today announced it has acquired a significant minority stake in premium condiments brand Truff. Financial terms of the deal were not disclosed.

Founded in 2017 by Nick Ajluni and Nick Guillen as a digitally-native hot sauce brand infused with truffle , Truff has expanded rapidly with a broad portfolio spanning pasta sauce, mayonnaise, oil, and salt, selling in more than 20,000 U.S. retail stores, including Whole Foods, Target
TGT
, Kroger, and Publix.

While the company’s flagship hot sauce remains a leading seller in the natural channel and the fastest-growing hot sauce in conventional grocery, Truff has scored several notable B2B partnerships, including recent launches with Popeyes Louisiana Kitchen, Hidden Valley Ranch, Taco Bell and The Super Mario Brothers Movie.

In a public statement, Kardashian said: “Truff is exactly the kind of business that embodies what we were looking for when we founded SKKY – a next-generation brand with a deep, authentic connection with consumers and the potential for ongoing growth. Nick and Nick have singlehandedly brought truffle-infused products into the mainstream food scene and built a community around the brand that will continue to be key to its success going forward. We’re proud to be kicking off the SKKY portfolio with this investment.”

Sammons also added: ““We are excited to back Truff for so many reasons: the passionate, visionary founders; the distinctive, category-defining nature of the products; and the unique brand positioning. The business has a very strong foundation and is now at the perfect juncture for us to bring our experience building and scaling unique consumer brands to help fuel the next stage of Truff’s growth.”

“A Staple In Kitchens Worldwide” Status

Ajluni and Guillen will continue to lead Truff as co-CEOs and remain significant investors, according to the company. And as part of the transaction expected to close in Q1 2024, Mark Ramadan, the co-founder and former CEO of Sir Kensington’s (acquired by Unilever in 2017), and former CEO of premium chocolate brand, Hu (acquired by Mondelēz), will join Truff’s Board as an independent director, alongside David Brisske, Managing Director of SKKY Partners.

In a joint statement, Ajluni and Guillen said: “There is no greater validation of the strength and potential of our business than having the backing of the SKKY Partners team. They understand our vision and the powerful connection we have with our consumers, and their expertise in growing branded consumer businesses is unmatched.

“On top of that,” they added, “we’re excited to welcome Mark Ramadan to our Board. We have tremendous respect for Sir Kensington’s and Hu and have been avid followers of those brands’ success stories. We know that Mark’s deep experience will make him an invaluable partner to us as we look to expand our distribution footprint, accelerate in-store performance, and continue to introduce new products.”

The goal for Truff, Ajluni highlighted in a recent LinkedIn post, is to establish the brand as “a staple in kitchens worldwide” by leveraging their strength in innovations.

Truffle, as a rare fungi buried underground that oftentimes needs to be hunted versus cultivated, is growing in popularity especially in the culinary world thanks to its sparse supply and distinctive flavors.

Analysts from Global Market Insights estimated the truffles category was valued at $0.91 billion in 2022, and is anticipated an 8.5% CAGR between 2023 and 2032, reaching around $2 billion by the end of the forecast period.