Hero Bread – a food innovation company developing low-carb options – recently announced it raised $15 million in funding, bringing the total funding to $47.5 million. And Hero Bread also announced the national retail launch of its better-for-you bread and baked goods.
Driven by a 54% consumer repeat purchase rate in the first 5 months on grocery shelves, Hero Bread is expanding distribution from 23 to 2,300 grocery retail stores with further growth expected in the back half of the year. Despite the challenging fundraising environment with many investors slowing their deployment of capital, the company’s strong sales of Hero Bread online and in regional grocery retailers had demonstrated momentum among investors.
The proceeds from the funding will be used to accelerate the expanded availability of Hero Bread’s groundbreaking product line in grocery retail as well as support future product innovation. And Cleveland Avenue, DNS Capital, Union Grove Venture Partners, Composite Ventures, GreatPoint Ventures, and The D’Amelio Family Fund, and 444 Capital invested in the round, bringing total funding to date to $47.5 million.
Hero Bread disrupted the bread and baked goods category after it launched in 2021 and has been able to parlay rapid growth selling directly to consumers online into success in the retail channel. And Hero Bread has previously been available on Amazon.com where both the Hero Classic White Bread and Hero Classic Burger Buns quickly rose to become #1 Amazon best-sellers. And since launching direct-to-consumer sales in April 2022 at hero.co, 74% of purchasers have made a repeat purchase, and 87% of the over 6,000 reviews to date rate Hero Bread products 5 out of 5 stars. Late last year, Hero Bread launched for the first time in the retail channel and the repeat purchase rate is already 54% in the first 5 months on the shelves, with sales velocity surpassing expectations.
Plus Hero Bread also announced its first natural channel distribution and first national retail launch at Sprouts Farmers Market, followed by launches in regional grocers Albertsons (across Texas & Louisiana), Tom Thumb, Randall’s, Heinen’s, and Buehler’s Fresh Foods, in addition to other large retailers. And by end-of-May, Hero Bread’s most popular products will be available in 2,300 grocery stores across 32 states. Consumers can continue to find Hero Bread products at all Just Salad and Freebirds World Burrito locations.
“444 Capital is joining Hero Bread and fellow like-minded investors to revolutionize the baking category and help people on their journey to lead healthier lives. We look forward to supporting their continued expansion and growth by making better-for-you baked goods not only accessible but delicious.”
- Heidi D’Amelio, mother of social media and reality TV stars Charli and Dixie D’Amelio
“This new funding will be essential to expanding our reach and fueling product innovation so we can further our mission of creating game-changing bread and baked goods. Our early performance in the direct-to-consumer and grocery retail channels signaled to investors the incredible demand and quality of our products, so our priority going forward this year is accelerating availability to meet consumer demand both online and in retail.”
- Founder and CEO of Hero Bread Cole Glass