SAN FRANCISCO — The parent company of Hero Bread has raised a total of $47.5 million in funding following its recent Series B round. Hero Labs, Inc. plans to expand retail distribution of its low-carbohydrate baked foods significantly this year.
After an exclusive introduction of its sandwich rolls at select Subway restaurants in a highly promoted debut, Hero Bread launched its sliced bread and kaiser rolls nationally direct to consumers a year ago. The products contain between zero and one net gram of carbohydrates and no sugar. Formulations include water, modified wheat starch, wheat protein, milled flaxseed, canola oil, apple cider vinegar, salt, fava bean protein, guar gum and enzymes. Additional products include tortillas, burger buns and hot dog buns.
The brand expanded into grocery retail late last year and within the first five months on shelves has a repeat purchase rate of 54%, according to the company. Products are available online at hero.co, Walmart.com and Amazon.com, and by the end of May will be sold in 2,300 retail locations across the country, including Sprouts Farmers Market, Albertsons, Tom Thumb, Randall’s, Heinen’s, and Buehler’s Fresh Foods, among others.
“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 chief executive officer 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.”
Cleveland Avenue, DNS Capital, Union Grove Venture Partners, Composite Ventures, GreatPoint Ventures and The D’Amelio Family Fund, 444 Capital, participated in the Series B round, joining a roster of investors that includes Tom Brady, Kevin Durant and Rich Kleiman’s Thirty Five Ventures, The Weeknd and Lil Baby.“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 television 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.”