Key Takeaways<\/h2>\n\n- After exiting the Subway partnership, Hero Bread focused on five SKUs.<\/li>\n
- The brand pivoted to DTC, then explored different retail channels. <\/li>\n
- Now, it\u2019s navigating what the CEO calls the third chapter in its DTC playbook.<\/li>\n<\/ul>\n<\/div>\n
In 2022, when YuChiang Cheng invested in Hero Bread<\/a> on behalf of 444 Capital and stepped in as the company\u2019s interim chief marketing officer, the low-carb, zero-sugar brand was at a critical crossroads.\u00a0<\/p>\n![\"\"](\"https:\/\/www.entrepreneur.com\/wp-content\/uploads\/sites\/2\/2026\/10\/YuChiang_Cheng_94734b.jpg?w=828\")
Image Credit: Courtesy of Hero Bread. YuChiang Cheng. <\/figcaption><\/figure>\nCole Glass had founded the company in 2019 to address his severe food allergies related to pollen. By October 2021, a partnership with Subway<\/a> seemed like an exciting path forward. The idea was to get the macro-friendly bread products into as many hands as possible so people could taste it for themselves.\u00a0<\/p>\nHowever, around the time Cheng joined the company, it was clear the unit economics didn\u2019t make sense. The Subway deal wasn\u2019t profitable<\/a>; Hero Bread was running out of money.\u00a0<\/p>\n\u201c\u200aWe were just too small at the time and couldn\u2019t service it, didn\u2019t have the resources and all the infrastructure put in place to effectively deliver that,\u201d Cheng says. <\/em>\u201cSo we backed out of it.\u201d<\/p>\nHero Bread brought in $54 million in revenue last year <\/h2>\n
Cheng pivoted to a direct-to-consumer (DTC<\/a>) strategy, allowing the brand to receive feedback from consumers more quickly and drive word-of-mouth sales, he says.\u00a0<\/p>\nCheng assumed the role of CEO in November 2023 and has continued to grow the company.<\/p>\n
In a funding round announced in June 2024<\/a>, Hero Bread raised $21 million in under 90 days. The round, co-led by Cleveland Avenue, DNS Capital and Composite Ventures, brought the company\u2019s total funding to date to more than $68.5 million.\u00a0<\/p>\nHero Bread brought in $54 million in annual revenue last year. Additionally, the company more than doubled its retail presence in two years, expanding from about 4,000 to 10,000 doors, which includes a recent Target launch.\u00a0<\/p>\n
But Hero Bread\u2019s successful push into retail \u2014 a feat many CPG<\/a> brands that launch DTC hope to achieve \u2014 doesn\u2019t mean the company plans to put the brakes on its DTC strategy anytime soon.<\/p>\n![\"\"](\"https:\/\/www.entrepreneur.com\/wp-content\/uploads\/sites\/2\/2026\/10\/240503_HERO_BREAD_Family_1968_16x9_x_2.jpg?w=1024\")
Image Credit: Courtesy of Hero Bread<\/figcaption><\/figure>\nEntrepreneur <\/em>sat down with Cheng to learn more about what he calls the \u201cthird chapter\u201d of Hero Bread\u2019s DTC playbook, and how it\u2019s continuing to unlock growth for the company.\u00a0<\/p>\nHero Bread experimented with different retail channels<\/h2>\n
After walking away from the Subway partnership and prioritizing DTC sales, Hero Bread focused on five SKUs: white bread, seeded bread, burger buns, hot dog buns and flour tortillas.\u00a0<\/p>\n
The line-up also made sense as the company entered retailers: The goal was to offer everyday staples that would drive repeat purchases on a weekly basis.\u00a0<\/p>\n
Initially, though, Cheng and the team weren\u2019t quite sure which retailers would be the right fit.\u00a0<\/p>\n
\u201cIt\u2019s a very mainstream taste profile,\u201d Cheng explains. \u201cSo there was a lot of debate, if this is going to be more of a Publix, Target<\/a> type product, or is this going to be more of a natural Whole Foods, Sprouts, type of product.\u201d<\/p>\nSo Hero Bread opted to experiment with different types of retailers. The company launched in Market District, Publix and Sprouts and planned to lean into whichever channel performed best. But six months later, the company\u2019s products had an impressive track record at all three.\u00a0<\/p>\n
\u201cWe were very, very fortunate in that,\u201d Cheng says. \u201cSo instead of picking [retail] channels, we decided to pick retailers that were more enthusiastic regardless of what channel they were in.\u201d\u00a0<\/p>\n
It\u2019s a different tactic than many CPG<\/a> brands use; they tend to zero in on one retail channel and go regional, the CEO notes.\u00a0<\/p>\nStriking the balance between affordability and convenience<\/h2>\n
Of course, CPG<\/a> brands that expand into retail have the advantage of economies of scale.\u00a0<\/p>\n\u201cYou can move tons of pallets on a truck much more affordably than you can send individual packages through ecommerce,\u201d Cheng says.\u00a0<\/p>\n
As a result, retail typically gives consumers a more affordable way to buy. DTC, on the other hand, serves as a more concierge path to purchase not only Hero Bread\u2019s staple products, but also other offerings that might not be able to hit retail shelves as seamlessly.\u00a0<\/p>\n
Hero Bread\u2019s Crafted Collection, which includes items like croissants, lemon poppy seed scones, shortbread biscuits (hand-baked in Sonoma with brown butter made by a Michelin chef), lends itself well to the model. The company\u2019s recent collaboration on pretzel bites with Auntie Anne\u2019s<\/a> does too.\u00a0<\/p>\n\u201c\u200a[These are] small-batch, largely handmade products that are exclusive to hero.co, where it just wouldn\u2019t make economic sense for us to hand-roll 300,000 to 400,000 croissants,\u201d Cheng explains.\u00a0<\/p>\n![\"\"](\"https:\/\/www.entrepreneur.com\/wp-content\/uploads\/sites\/2\/2026\/10\/A-Twist-of-Auntie-Annes\u00ae-Hero-Pretzel-Bites-1.jpg?w=1024\")
Image Credit: Courtesy of Hero Bread<\/figcaption><\/figure>\nWhat\u2019s more, DTC<\/a> can act as an invaluable testing ground for products with the potential to sell effectively in a brick-and-mortar setting.\u00a0<\/p>\nThat\u2019s exactly what the company did with its bagels, unveiling a limited-edition launch online in December 2024.\u00a0<\/p>\n
\u201c\u200aWe weren\u2019t sure if people would want to buy bagels from us,\u201d Cheng says, \u201cso we initially made them in smaller batches, sold them at hero.co, and they quickly became one of our best-selling items.\u201d\u00a0<\/p>\n
Hero Bread\u2019s bagels landed on retail shelves within six months.\u00a0<\/p>\n
Meeting Hero Bread\u2019s consumers wherever they may be<\/h2>\n
Cheng doesn\u2019t believe a successful entrepreneur<\/a> or business leader is defined by how many times they win.\u00a0<\/p>\n\u201cIt\u2019s how many times you can try again, regardless of how many times you\u2019ve fallen down or how much blood you get on your face,\u201d the CEO says. \u201cThere is a level of courage that is really necessary.\u201d\u00a0<\/p>\n
It\u2019s a tendency toward resilience<\/a> that\u2019s helped Cheng lead Hero Bread through some crucial years that required an enthusiastic willingness to adapt to every challenge \u2014 and the CEO looks forward to what comes next.\u00a0<\/p>\n\u201cWe\u2019re always trying to meet the consumer where they are,\u201d Cheng says. \u201cThere\u2019s a specific Hero fan, and then there\u2019s the overarching bread fan. We believe that the more people who try us, the more people who will believe [in us].\u201d<\/p>\n<\/p><\/div>\n
\n\nKey Takeaways<\/h2>\n\n- After exiting the Subway partnership, Hero Bread focused on five SKUs.<\/li>\n
- The brand pivoted to DTC, then explored different retail channels. <\/li>\n
- Now, it\u2019s navigating what the CEO calls the third chapter in its DTC playbook.<\/li>\n<\/ul>\n<\/div>\n
In 2022, when YuChiang Cheng invested in Hero Bread<\/a> on behalf of 444 Capital and stepped in as the company\u2019s interim chief marketing officer, the low-carb, zero-sugar brand was at a critical crossroads.\u00a0<\/p>\nImage Credit: Courtesy of Hero Bread. YuChiang Cheng. <\/figcaption><\/figure>\nCole Glass had founded the company in 2019 to address his severe food allergies related to pollen. By October 2021, a partnership with Subway<\/a> seemed like an exciting path forward. The idea was to get the macro-friendly bread products into as many hands as possible so people could taste it for themselves.\u00a0<\/p>\nHowever, around the time Cheng joined the company, it was clear the unit economics didn\u2019t make sense. The Subway deal wasn\u2019t profitable<\/a>; Hero Bread was running out of money.\u00a0<\/p>\n<\/p><\/div>\n
In 2022, when YuChiang Cheng invested in Hero Bread<\/a> on behalf of 444 Capital and stepped in as the company\u2019s interim chief marketing officer, the low-carb, zero-sugar brand was at a critical crossroads.\u00a0<\/p>\n Cole Glass had founded the company in 2019 to address his severe food allergies related to pollen. By October 2021, a partnership with Subway<\/a> seemed like an exciting path forward. The idea was to get the macro-friendly bread products into as many hands as possible so people could taste it for themselves.\u00a0<\/p>\n However, around the time Cheng joined the company, it was clear the unit economics didn\u2019t make sense. The Subway deal wasn\u2019t profitable<\/a>; Hero Bread was running out of money.\u00a0<\/p>\n \u201c\u200aWe were just too small at the time and couldn\u2019t service it, didn\u2019t have the resources and all the infrastructure put in place to effectively deliver that,\u201d Cheng says. <\/em>\u201cSo we backed out of it.\u201d<\/p>\n Cheng pivoted to a direct-to-consumer (DTC<\/a>) strategy, allowing the brand to receive feedback from consumers more quickly and drive word-of-mouth sales, he says.\u00a0<\/p>\n Cheng assumed the role of CEO in November 2023 and has continued to grow the company.<\/p>\n In a funding round announced in June 2024<\/a>, Hero Bread raised $21 million in under 90 days. The round, co-led by Cleveland Avenue, DNS Capital and Composite Ventures, brought the company\u2019s total funding to date to more than $68.5 million.\u00a0<\/p>\n Hero Bread brought in $54 million in annual revenue last year. Additionally, the company more than doubled its retail presence in two years, expanding from about 4,000 to 10,000 doors, which includes a recent Target launch.\u00a0<\/p>\n But Hero Bread\u2019s successful push into retail \u2014 a feat many CPG<\/a> brands that launch DTC hope to achieve \u2014 doesn\u2019t mean the company plans to put the brakes on its DTC strategy anytime soon.<\/p>\n Entrepreneur <\/em>sat down with Cheng to learn more about what he calls the \u201cthird chapter\u201d of Hero Bread\u2019s DTC playbook, and how it\u2019s continuing to unlock growth for the company.\u00a0<\/p>\n After walking away from the Subway partnership and prioritizing DTC sales, Hero Bread focused on five SKUs: white bread, seeded bread, burger buns, hot dog buns and flour tortillas.\u00a0<\/p>\n The line-up also made sense as the company entered retailers: The goal was to offer everyday staples that would drive repeat purchases on a weekly basis.\u00a0<\/p>\n Initially, though, Cheng and the team weren\u2019t quite sure which retailers would be the right fit.\u00a0<\/p>\n \u201cIt\u2019s a very mainstream taste profile,\u201d Cheng explains. \u201cSo there was a lot of debate, if this is going to be more of a Publix, Target<\/a> type product, or is this going to be more of a natural Whole Foods, Sprouts, type of product.\u201d<\/p>\n So Hero Bread opted to experiment with different types of retailers. The company launched in Market District, Publix and Sprouts and planned to lean into whichever channel performed best. But six months later, the company\u2019s products had an impressive track record at all three.\u00a0<\/p>\n \u201cWe were very, very fortunate in that,\u201d Cheng says. \u201cSo instead of picking [retail] channels, we decided to pick retailers that were more enthusiastic regardless of what channel they were in.\u201d\u00a0<\/p>\n It\u2019s a different tactic than many CPG<\/a> brands use; they tend to zero in on one retail channel and go regional, the CEO notes.\u00a0<\/p>\n Of course, CPG<\/a> brands that expand into retail have the advantage of economies of scale.\u00a0<\/p>\n \u201cYou can move tons of pallets on a truck much more affordably than you can send individual packages through ecommerce,\u201d Cheng says.\u00a0<\/p>\n As a result, retail typically gives consumers a more affordable way to buy. DTC, on the other hand, serves as a more concierge path to purchase not only Hero Bread\u2019s staple products, but also other offerings that might not be able to hit retail shelves as seamlessly.\u00a0<\/p>\n Hero Bread\u2019s Crafted Collection, which includes items like croissants, lemon poppy seed scones, shortbread biscuits (hand-baked in Sonoma with brown butter made by a Michelin chef), lends itself well to the model. The company\u2019s recent collaboration on pretzel bites with Auntie Anne\u2019s<\/a> does too.\u00a0<\/p>\n \u201c\u200a[These are] small-batch, largely handmade products that are exclusive to hero.co, where it just wouldn\u2019t make economic sense for us to hand-roll 300,000 to 400,000 croissants,\u201d Cheng explains.\u00a0<\/p>\n What\u2019s more, DTC<\/a> can act as an invaluable testing ground for products with the potential to sell effectively in a brick-and-mortar setting.\u00a0<\/p>\n That\u2019s exactly what the company did with its bagels, unveiling a limited-edition launch online in December 2024.\u00a0<\/p>\n \u201c\u200aWe weren\u2019t sure if people would want to buy bagels from us,\u201d Cheng says, \u201cso we initially made them in smaller batches, sold them at hero.co, and they quickly became one of our best-selling items.\u201d\u00a0<\/p>\n Hero Bread\u2019s bagels landed on retail shelves within six months.\u00a0<\/p>\n Cheng doesn\u2019t believe a successful entrepreneur<\/a> or business leader is defined by how many times they win.\u00a0<\/p>\n \u201cIt\u2019s how many times you can try again, regardless of how many times you\u2019ve fallen down or how much blood you get on your face,\u201d the CEO says. \u201cThere is a level of courage that is really necessary.\u201d\u00a0<\/p>\n It\u2019s a tendency toward resilience<\/a> that\u2019s helped Cheng lead Hero Bread through some crucial years that required an enthusiastic willingness to adapt to every challenge \u2014 and the CEO looks forward to what comes next.\u00a0<\/p>\n \u201cWe\u2019re always trying to meet the consumer where they are,\u201d Cheng says. \u201cThere\u2019s a specific Hero fan, and then there\u2019s the overarching bread fan. We believe that the more people who try us, the more people who will believe [in us].\u201d<\/p>\n<\/p><\/div>\n In 2022, when YuChiang Cheng invested in Hero Bread<\/a> on behalf of 444 Capital and stepped in as the company\u2019s interim chief marketing officer, the low-carb, zero-sugar brand was at a critical crossroads.\u00a0<\/p>\n Cole Glass had founded the company in 2019 to address his severe food allergies related to pollen. By October 2021, a partnership with Subway<\/a> seemed like an exciting path forward. The idea was to get the macro-friendly bread products into as many hands as possible so people could taste it for themselves.\u00a0<\/p>\n However, around the time Cheng joined the company, it was clear the unit economics didn\u2019t make sense. The Subway deal wasn\u2019t profitable<\/a>; Hero Bread was running out of money.\u00a0<\/p>\n<\/p><\/div>\nHero Bread brought in $54 million in revenue last year <\/h2>\n
Hero Bread experimented with different retail channels<\/h2>\n
Striking the balance between affordability and convenience<\/h2>\n
Meeting Hero Bread\u2019s consumers wherever they may be<\/h2>\n
Key Takeaways<\/h2>\n
\n