Monte’s Locks In $2M

Is the sleepy pasta sauce segment really reeling in star power?

That’s the tone behind Monte’s Fine Foods’ latest capital raise after it pulled in $2 million from consumer venture studio Night and early stage VC Shrug Capital.

Monte’s closed the round after five years on the market that has seen it push beyond its legacy sauce recipe into new flavors (think: Spicy and Sweet Pepper) as well as extend its likeness into the dried pasta set. Collabs and swag are also a key piece to the pasta sauce’s growing popularity, but more on that in a moment.

• The CPG brand is a culmination of many years of Monte’s Italian products being sold in New York, where the family first began a restaurant in 1906.
• The Monte family made a mid-century move out to Montauk and sank deeper into the hospitality space (and sharing classic Italian food) via its operation of the Gurney Inn.

Upon first glancing at Night’s online presence, it seems odd that the Los Angeles-based platform – which originated as an influencer talent management company – would invest in a CPG at all, let alone on in the slower-growing sauce set from a historical, legacy-type brand.

Night was founded in 2015 by former NFL agent Reed Duchscher and continues to grow its roster of up-and-coming talent. But in 2021, the firm expanded focus toward consumer-facing upstart brands via a $21 million fund and new platform known as Night Ventures.

• The shift into CPG didn’t come totally out of the blue. The firm previously managed Youtube star MrBeast from 2018 to 2024, during which period he made multiple forays into consumer-facing segments via the launches of MrBeast Burger (now-defunct), Feastables and Lunchly.
• Night Ventures was cooked up so that its brands could have direct access to its roster of about 65 influencers and vice versa.

Back To The Sauce: Once the Night check clears, Monte’s aims to expand its team and product lineup (including with a new 24 oz. jar) as well as its national distribution footprint. Currently, the products are available in about 1,000 stores, including Erewhon, Whole Foods, Bristol Farms, DeCiccos, Kings, Uncle Giusseppes, Target.

“Most of our bets are on helping artists become CEOs,” said Night general partner Ben Mathews, in a statement. “But with Monte’s, we found a CEO who’s already a star – and building a brand with the same gravitational pull. It’s a perfect match: an undeniably great product, a magnetic founder, and a clear understanding of how to use content to build cultural relevance.”

CEO PJ Monte has revived the family’s sauce and story via a wide array of collaborations spanning fashion, grocery, foodservice and CPG. Monte’s has executed fashion-forward partnerships with the likes of Bloomingdales, STAUD, Ignored Prayers and more, while within the food world, it has teamed up with Pop Up Grocer, Community Goods, Greenberg’s, Cutlets and Uncle Paulie’s, among many others.

The growth comes as the sauce category at large is undergoing a bit of an overhaul. As of last month, the pasta sauce category has already surpassed $4 billion in total dollar sales even as growth slows from a rate of 8.8% in 2024 to 4.6%, per the latest Circana data.

New entrants like Sauz are bringing younger consumers back into the set with its Gen Z-centric position and innovative flavor combinations. The brand’s distribution footprint continues to heat up as it works to upend legacy players like Rao’s, which also continues to see plenty of momentum.

Rao’s moved into the Campbell’s house last year after being acquired as part of the Sovos portfolio for nearly $3 billion. It’s no secret that the Soup Co. purchased Sovos strictly for the sauce, meaning the multinational conglomerate must also see plenty of promise and opportunity in the pasta sauce set.