checkout-chats

Dec 13, 2024

Checkout Chats: Johanna and Ismail, Founders of Wildgrain

From Home Kitchen to $30M: Building a Profitable Frozen Bread Empire

When Johanna and Ismail started Wildgrain, they weren't just launching another subscription box—they were reimagining how Americans could experience artisanal bread, pastas, cookies, pastries, and other delicious carb-loaded goods at home! Their journey from home bakers to founders of a profitable $30M business is a masterclass in building a sustainable DTC brand, especially in the challenging frozen food category.

The Genesis: From Tech to Toast

The story begins with failure—or rather, a pivot born from it. After their previous venture in the tech and consumer hardware space didn't work out, the married cofounders found themselves reconsidering their approach to entrepreneurship. Inspired by ButcherBox's success in delivering high-quality frozen meat, they saw an opportunity to bring European-quality bread to American homes.

"We basically stopped eating bread when we came here, and missed all the good breads and pastries from Europe, from Germany, and Paris."

The lightbulb moment came during a trip to Germany, where Johanna tasted fresh-baked sourdough at a friend's house. "This is the best thing I've ever eaten in so long," she recalled. Living in Boston, they had essentially stopped eating bread, missing the quality they were used to in Europe. The experience sparked an obsession. Johanna immediately bought the Tartine cookbook and began baking sourdough every weekend.

From Kitchen Counter to National Scale

What started as weekend baking experiments quickly grew. "It was just might as well make 10 loaves, 20 loaves," Johanna explained. The transition from home kitchen to commercial operation wasn't smooth…especially with timing that coincided with both having their first child AND the start of the COVID-19 pandemic in January 2020. Fun right?

The breaking point came when their pasta machine broke, threatening to derail orders. "We were literally crying," Ismail recalled. This crisis forced them to confront a crucial decision: scale through partnerships or stay small. They chose to expand, beginning with fresh pasta partners in Boston and gradually building a network of artisanal bakers across the country.

The Frozen Food Revolution

Perhaps the most fascinating aspect of Wildgrain's success is how they've overcome the stigma around frozen bread. While some artisanal bakers initially resisted the idea, the pandemic created an opportunity for partnerships. Their approach was simple: let the product speak for itself.

"The moment you say frozen, they're on their guard... Listen. Don't do it. Just try it on your end."

The results speak for themselves. By focusing on quality first and building systems to maintain consistency across their supply chain, they've proven that frozen can actually preserve the artisanal quality of bread. Every bakery partner must adhere to strict ingredient standards and quality control processes, with Johanna personally testing samples from each production run.

Profitable by Design

In an era where many DTC brands chase growth at all costs, Wildgrain stands out for its commitment to profitability. Reaching $30 million in revenue with positive margins in 2023 wasn't an accident, it was built into their DNA from day one.

"Every board meeting, I remember we're talking to them, and they would say, 'so are you now raising?' I'm like, you don't understand. We're not gonna raise. We're good."

"We were obsessed with it," Ismail explained, citing their previous startup experience as motivation. This obsession manifested in every aspect of the business:

  • Careful expansion of marketing only to states where shipping costs made sense

  • Negotiating aggressively on packaging and dry ice costs

  • Building a lean team focused on specific functions

  • Maintaining tight control over margins

Plus they figured out how to get FREE CROISSANTS FOR LIFE, which is the best deal ever if you ask me.

Innovation Through Inclusion

Recent launches of gluten-free and vegan options showcase Wildgrain's commitment to evolution while maintaining quality. The gluten-free line, launched after extensive R&D, had to meet a simple but challenging standard: "not to just be good for gluten-free, but to be good end of story," as Johanna put it.

"I wanted it not to just be good for gluten-free, but to be good end of story."

This expansion reflects their broader mission of becoming an "all-inclusive bakery for all your family's needs," whether they're plant-based, gluten-free, or following other dietary preferences.

Looking Ahead

As Wildgrain continues to grow, they maintain their focus on quality and sustainability. Their success proves that it's possible to scale artisanal food production without compromising on quality—and turn a profit while doing it.

The company's journey offers valuable lessons for other DTC brands, particularly in the food space: focus on unit economics from day one, build systems to maintain quality at scale, and never compromise on the core product experience. In a world of venture-backed blitzscaling, Wildgrain shows that sometimes the best path to growth is taking it one loaf at a time.

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