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Gaining ground in the gluten-free market

Mightylicious gluten-free cookies
PHOTO COURTESY OF MIGHTYLICIOUS
BY: Maddie Lambert

Maddie Lambert

KANSAS CITY, MO — True of any CPG startup, cash flow is the biggest hurdle. With a background in finance and the wherewithal to practice conservative spending, Carolyn Haeler, founder and CEO of Mightylicious, opened a $150,000 line of credit to fund her gluten-free cookie business for its first two years … but she also received about $90,000 in small business loans.

“It’s important people know these types of loans are available and that there are banks willing to make investments and take risks on small businesses,” Haeler said. “With those loans, I was able to expand and reach more consumers.”

The brand’s go-to-market strategy included onboarding to Whole Foods Market’s local supplier program, which took roughly six months. During this time, Haeler found a commercial facility, received her food handling license and incorporated the business. In January 2018, Mightylicious cookies hit the shelves with three flavors: Brown Butter Chocolate Chip, Double Dutch Chocolate Chip and Salted Peanut Butter.

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Expanding SKUs in the market

By the end of 2018, Mightylicious had expanded from three Whole Foods stores to having product in all of the retailer’s New York state locations. Less than five months later, Mightylicious cookies were on shelves throughout the northeast region. Today, the product is available online and in almost all 50 states in various independent, specialty and conventional grocery stores.

As the business experienced significant growth in 2020, Mightylicious responded to consumer demand for a plant-based alternative with the addition of two vegan flavors: Chocolate Chip and Oatmeal Coconut.

“My two vegan SKUs became my number one and number three bestselling cookies,” she said. “Consumers wanted it, and they were fascinated that the product was vegan and gluten-free.”

After seeing large success beyond the gluten-free community, the brand added Oatmeal Raisin and Double Dutch flavors, for a total of four vegan, non-GMO certified and kosher SKUs in its product portfolio, with a later addition of a gluten- and egg-free Brown Butter Short Bread flavor.

“I’m not putting any extra ingredients in these products, but I’m also not solely focused on creating a functional cookie. I’m trying to make a clean, simple cookie that tastes good.”— Carolyn Haeler | founder and CEO | Mightylicious

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Something for everyone

Despite the success Mightylicious experiences with people who are vegan and gluten-free, Haeler still faces the challenge of attracting consumers who don’t shop with those restrictions.

“My goal is to get Mightylicious into the hands of consumers who are hesitant,” Haeler said. “Initiating that relationship with them is one of my top priorities.”

While Haeler is the company’s only employee, she outsources labor in areas where she needs additional expertise, with a team of about nine people who assist with sales, operations, packaging and marketing.

Fully committed to the growth of the brand, Haeler is on the lookout for strategic investors to raise additional capital within the next 12 months. The brand has national distribution through UNFI and KeHE but is currently in the first phase of getting into all of the allocated distribution centers. With assistance from an institutional investor, the brand can expand distribution to reach store shelves in all 50 states and keep a watchful eye on growth opportunities. Mightylicious aims to expand into a lifestyle brand with products in multiple CPG categories. Additionally, Haeler is planning seasonal cookie launches in an array of different flavors in the upcoming years.

With consumer trends remaining an evolving target, Mightylicious’ strategy is to become the connecting force at the crossroads where consumers seek healthier foods but also the satisfaction of permissible indulgence.

“Mightylicious is right in the middle,” Haeler said. “I’m not putting any extra ingredients in these products, but I’m also not solely focused on creating a func­tional cookie. I’m trying to make a clean, simple cookie that tastes good.”

Mightylicious is starting to stand out in the gluten-free cookie market, and above all, Haeler seeks to break the stigma around the category to position her products as a top choice for all diets.

Haeler is also mindful of product afford­ability amidst inflation and a shifting economic landscape.

“I would like to find ways to consolidate the margin and make my cookies go from a $7.99 to a $5.99 product,” she shared.

The gluten-free segment has the poten­tial to come into the forefront rather than be seen as an alternative category, espe­cially as consumer interest in better-for-you baked goods grows. Mightylicious is setting the standard for what it means to be gluten-free by empowering consum­ers to shop — and eat — differently … and that’s an awakening that can disrupt all cookie categories.

This story has been adapted from the February | Q1 2025 issue ofCommercial Baking. Read the full story in the digital edition here.

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