True Made Foods’ current round has a valuation cap of $11 million. The raise also has a 10% discount, which further sweetens the deal for investors. The company drove revenue to $1.8 million in 2020, which is tremendous progress from 2019’s revenue of $711,000. The company’s revenue multiple as of 2020 is slightly above average compared to condiment industry averages. Overall, True Made Foods’ valuation is a fair deal.

True Made Foods operates in the niche food condiment market. In 2021, nearly $18.2 billion was spent on food condiments in the US alone. The market boasts a 5.3% compound annual growth rate. Money spent on healthier condiments will likely increase given industry trends. A growing number of busy consumers rely on condiments as a quick and easy way to flavor their meals. And consumers are also increasingly opting for healthier, low- or no-sugar options. As long as healthy condiments are convenient and tasty, it is likely that US consumers will continue to make healthier condiment purchases in the future. 

Overall, True Made Foods’ addressable market is limited given its niche, but the company has a variety of opportunities to expand. It appears True Made Foods is starting to explore the spices and rubs, sides, and cooking sauces markets. While this is not a winner-take-all market, True Made Foods could come to dominate the healthy alternative condiments market through its carefully developed flavor profiles and nutrient-rich products.

True Made Foods CEO Abraham Kamarck founded the company in 2015. He is well versed in management through his education at Vanderbilt University and the London Business School. Kamarck also has an extensive background in entrepreneurship and business development in emerging markets. Additionally, he had an eight-year career as a naval aviator, completing operations and deployments around the world. His experience as a navy chief and civilian entrepreneur is critical for both expanding the True Made Foods’ product offerings and leading brand adoption. 

In 2017, Kamarck reached out to pitmaster Ed Mitchell to collaborate on new barbecue sauces. Mitchell — who has been cooking traditional barbecue for decades and shared Kamarck’s vision of creating healthier sauces with less sugar — then joined the True Made Foods team. His son Ryan Mitchell joined the company in 2017 as co-pitmaster and helps create flavorful condiment profiles at True Made Foods. Ryan Mitchell has a bachelor’s in economics from East Carolina University and looks to revolutionize classic American barbecue. 

The rest of the team, two people strong, is focused on marketing and operations management. True Made Foods’ team boasts complementary skill sets and diverse backgrounds. Diversity is often a sign of the positive culture that a company needs for growth.

The market for healthy condiments is crowded, and it can be difficult to determine qualities that distinguish one product or brand from another. True Made Foods focuses on nutrient-rich condiments with nuanced taste profiles. Such healthful ingredients make True Made Foods condiments vegan- and keto-friendly, which sets it apart from some of its competitors.

True Made Foods’ competitors include Primal Kitchen, Tessemae’s, Annie’s, and Good Food for Good, to name a few. True Made Foods is more conscious of additives, healthy ingredients, and rich flavor profiles than its competition. In addition to ketchup alternatives, True Made Foods offers health-conscious mustards and spice mixes. It is expanding into rubs, salad dressings, cooking sauces, and eventually sides. Competitors might cut out or substitute sugar, but True Made Foods stands out by using fruits and vegetables to naturally incorporate nutrients.  

True Made Foods’ price point is also very reasonable, making its products more appealing than other healthy condiment options. At roughly $6 per 17-ounce bottle, its sugar-free ketchup is much cheaper than Good Food for Good’s ketchup, which is around $8 per 9.5-ounce bottle. Compared to other similar products, True Made Foods appears to offer healthier and more flavorful condiments at a lower price.

True Made Foods’ revenue grew by 150% from 2019 to 2020, from $711,000 to $1.8 million. Its drastic revenue growth is a positive indicator for True Made Foods’ future in the healthy condiments sector. The company only has a profit margin of roughly 17%, but this is normal for companies selling consumer products and goods. This profit margin is even more impressive compared to Heinz, which has just an 8% profit margin. True Made Foods’ monthly burn rate is relatively low, which is a direct result of running a lean team. With prior fundraising of more than $2.3 million, True Made Foods is able to move quickly, test, and expand its product offerings more rapidly than many other companies in this space. 

True Made Foods also benefits from strategic partnerships with Kroger, Walmart, and Sprouts Farmers Market. True Made Foods’ products are currently sold in more than 5,000 US stores. By having access to distributors and the existing customer base of larger chain stores, True Made Foods can likely grow its following faster. 

In a poll of more than 6,000, 97% gave True Made Foods’ sugar-free ketchup a favorable rating, and most of them purchased a product afterward. This indicates True Made Foods has a good chance of retaining customers. Finally, the company gained recognition as the official condiment brand of the Boston Red Sox and the Washington Nationals. Receiving exposure from famous sports teams is likely to help True Made Foods’ brand spread among the fans.

True Made Foods’ risk level is moderate. The company has a defensibility risk due to the nature of consumer goods and products that can’t be patented. In short, while True Made Foods might offer a superior product to its competitors, a competitor could easily replicate it. 

There is also some financial risk. The company was founded in 2015, but it has only recently gained financial traction and is not yet profitable. Being in the consumer goods and product space, this raises questions about future financial growth. True Made Foods will need to address its financial situation to ensure future profitability and financial growth for investors.

True Made Foods’ biggest concerns are defensibility and financial traction. It operates in a crowded and niche market. There are low entry barriers, and the company’s products are easy for competitors to replicate. To avoid being one of many, True Made Foods will need to further differentiate itself moving forward and claim more of the market share. 

The company is also not yet profitable. And possible partnerships have the potential to fall through or be less fruitful than the True Made Foods team is anticipating. If its price point increases or competitors begin to offer significantly cheaper healthy condiment options, the company could lose its competitive price point.

True Made Foods is gaining financial traction, creating loyal customers, and diversifying its product offerings. The company generated an impressive $1.8 million in revenue in 2020, boasts better profit margins than its competitors, and has partnerships with major retailers Kroger, Walmart and Sprouts Farmers Market. 

The competition in the healthy condiments space is fierce, but it is not a winner-take-all industry. True Made Foods has developed healthy, nutrient-rich recipes, allowing customers to feel good about what they are eating while still enjoying the taste. The market has many niches for True Made Foods to expand into with its growing customer base. The company’s highly affordable price range makes it more competitive and appealing to new customers looking for healthier alternatives to their favorite condiments.

True Made Foods provides healthy condiments powered by fruits and vegetables. True Made Foods saw tremendous revenue growth between 2019 and 2020, and the company has a growing customer base. It has partnerships with some major retailers and has goals to secure additional partnerships and product offerings. Its CEO has entrepreneurial experience and has built out a small yet cohesive team that should support the growing company. True Made Foods’ growing customer base, margin levels, and affordable price range are encouraging for investors. The company seems committed to supporting consumers seeking healthier habits by offering affordable, nutrient-rich condiments. All things considered, the current raise’s valuation is a fair deal for investors. 

Although True Made Foods has unique flavor profiles and recipes, it still has defensibility concerns because it offers similar products to its competitors. Operating within such a crowded market with little differentiation, a small team, and limited financial traction leaves True Made Foods particularly vulnerable. Therefore, True Made Foods has been rated a Neutral Deal by the KingsCrowd investment team. 

For questions regarding the KingsCrowd analyst report or ratings for this company, please reach out to support@kingscrowd.com. 

Analysis written by Carolyn Price, October 29, 2021.