Daybreak At Fogg deodorant’s owner, KKR’s PE math clashes with family-business wisdom
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Oct 7, 2025 Explore the rollercoaster journey of Fogg deodorant, rising to fame with its unique no-gas formula. Delve into the complexities of KKR's $600 million acquisition and the ensuing power struggle with the Patel brothers. Discover how budget cuts and a focus on traditional brand strategies caused Fogg's market dominance to wane. With new product launches faltering and a leadership shake-up on the horizon, the future of Vini Cosmetics hangs in the balance. Will they innovate or double down on their classic brand?
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Founder’s Margin-First Habit
- Darshan Patel interrupted an Accenture presentation and scribbled simple margin maths on paper to insist on 70–75% margins.
- This illustrates the founders' hands-on, small-business instincts that shaped Vinny's pricing and culture.
KKR’s High-Value Bet
- KKR bought a majority stake valuing Vinny at about $1.2 billion, paying nearly 35x EBITDA by some accounts.
- That price reflected high expectations of pre-COVID profitability that the business later struggled to meet.
Unclear Handover Sparks Tension
- After the deal there was no clean handover: founders retained influence via holdings and investor ties.
- That created an uneasy coexistence between KKR's management and the Patel brothers, which hindered effective control.