SAN FRANCISCO — Hero Bread has announced the national retail launch of its better-for-you bread and baked goods, increasing its retail presence from 23 stores to 2,300 across 32 states by the end of May. This move is driven by the 54% push in consumer repeat purchase rate in the first five months on grocery store shelves.
“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,” said Cole Glass, founder and CEO of Hero Bread. “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.”
In the face of a difficult fundraising environment with slowed deployment of capital from investors, Hero Bread is forging ahead with strong sales online and in regional grocery retailers. Proceeds from the raise will be used to expand the accessibility of Hero Bread’s product line in retailers and further product innovation.
Cleveland Avenue, DNS Capital, Union Grove Venture Partners, Composite Ventures, GreatPoint Ventures and 444 Capital, the D’Amelio Family Fund, invested in this fundraising round, raising total funding to date to $47.5 M.
“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,” said Heidi D’Amelio, mother of social media and reality TV stars Charli and Dixie D’Amelio. “We look forward to supporting their continued expansion and growth by making better-for-you baked goods not only accessible but delicious.”
When Hero Bread launched in 2021, the brand disrupted the bread and baked goods category and has transitioned rapid growth in online direct to consumers sales into retail channel success. Following its direct-to-consumer sales launch through the Hero Bread website in April 2022, 74% of purchasers have repeatedly purchased.
Currently, driven by high demand, Hero Bread is debuting its first natural channel distribution and national retail launch at Sprouts Farmers Market, in regional grocers such as Albertsons, Tom Thumb, Randall’s Heinen’s and Buehler’s Fresh Foods, and other large retailers.
