Pacha Goes Beyond Bread With Gluten-Free Tortillas

Gluten-free bread baker Pacha is betting on sprouted buckwheat sourdough to reach more consumers.

The mission-driven brand has progressively ratcheted up its manufacturing capacity as it has scaled from a digital-first model to nationwide distribution in two of the largest natural channel retailers.

The San Diego-based business began with organic and gluten-free bread loaves, followed by the introduction of English muffins. Now it’s launching sourdough tortillas, using a similar sprouted buckwheat base that is naturally gluten-free. What started as a passion project for CEO Adam Hiner (who is the co-founder of hard kombucha brand Boochcraft) turned into a business when he realized there was a demand for more allergen- and gluten-free bread options.

“It got to the point where it was clear that people wanted this bread; people kept asking where they could find it,” Hiner said. “We ended up partnering with one of the most popular vegan restaurants in San Diego because they serve 100% organic food, and they couldn’t find organic, gluten-free bread anywhere.”

Hiner, along with his wife and co-founder Madeline Hamann, set out to scale production in April 2020, just as the COVID-19 pandemic set in.

“It was actually a perfect time,” Hiner said. “Retail grocery stores weren’t talking to anyone, so we couldn’t pitch our bread into retail, but we could make the bread, figure out the recipes and grow it naturally.”

Not only did Pacha start selling bread direct-to-consumer, but it also developed a dedicated customer base at local farmers’ markets and through a weekly online pick-up service from the couple’s house.

Initially, the brand used a 300 sq. ft. facility but has since scaled into a 14,000 sq ft. facility (including its freezer space), where it can meet the demands of nationwide distribution in Whole Foods, Sprouts and Albertsons chains. Pacha expects to be in about 2,500 retail doors by the end of the year.

Along with extending deeper in retail, Pacha has been expanding its portfolio with a steady stream of limited-batch bread options supplementing its loaves, English muffins – the top-selling SKU in Whole Foods – and now tortillas.

Betting On Tortillas

The sprouted buckwheat sourdough tortillas were a happy accident that Hiner stumbled on as he was experimenting with making crackers. While crackers would require new equipment to make properly, the tortillas hit on “white space” for certified organic, gluten-free tortillas, Hiner said.

“Our tortillas have a conventional appeal, where our bread is a little bit more niche,” he said. “It’s okay if the bread stays niche and our English muffins and tortillas become the hero, mass market products. We’re prepared to run with that.”

While the tortillas launch into the natural channel in December at Whole Foods, there is already interest from mass retailers to bring them in and help Pacha grow its footprint in more conventional channels.

After raising over $3.1 million through friends and family and two crowdfunding campaigns on WeFunder, Pacha secured $1 million in a bridge round and is preparing to seek institutional backers for a Series A.

While Pacha will eventually need more funding to continue its growth trajectory, “we’re not willing to take money from an institutional investor that wants a path to control,” Hiner said.

As with any business, Pacha wants to be profitable and grow, but it needs to align with the values Hiner and Hamann founded the brand with.

Prior to Pacha, Hamann, who is the brand’s director of marketing, was an oceanographer. This experience helped direct Pacha’s sustainable sourcing practices, which include using Soil & Climate Initiative regenerative certified ingredients and home-compostable packaging.

The brand has also used its platform to donate the proceeds of certain LTOs to values-aligned nonprofit organizations. Pacha’s Fig & Olive Peace Loaf was a tribute to Hiner’s Palestinian heritage and donated 100% of profits to “Bees for Peace,” a regenerative beekeeping initiative training Arab and Jewish women together in Israel.