How I Built This with Guy Raz – Mary’s Gone Crackers: Mary Waldner

Intro

In this episode of “How I Built This with Guy Raz,” host Guy Raz interviews Mary Waldner, the founder of Mary’s Gone Crackers. Mary shares her journey of creating a successful gluten-free cracker brand after struggling with gluten sensitivity and changing her diet. Through perseverance and innovation, Mary’s Gone Crackers is now sold in tens of thousands of stores across the US, including major retailers like Walmart and Target.

Main Takeaways

Creating a Healthy and Satisfying Gluten-Free Snack

• Mary Waldner created Mary’s Gone Crackers after struggling with gluten sensitivity and changing her diet.
• The idea for the crackers came from a mixture of seeds and gluten-free grains that Mary baked for herself.
• Challenges of going gluten-free include missing out on social eating experiences and struggling to find satisfying substitutes for gluten-based foods.
• Creating a gluten-free snack that is both healthy and satisfying can be a challenge.

Overcoming Health Challenges and Diagnosis

• Mary was diagnosed with celiac disease at 43 years old, which was a relief and validation for her after a lifetime of struggling with her health.
• Celiac disease can go undiagnosed for years, even with doctors.
• Going gluten-free can lead to noticeable health improvements in 3-6 months.

From Homemade Snacks to Mass Production

• Mary started making gluten-free crackers by hand and sold them at a local health food store, which led to high demand for her product.
• Mary and her husband Dale initially considered licensing the recipe or putting it in a cookbook, but realized it was too difficult to make.
• They learned that most food is co-manufactured, so they contacted co-packers to figure out how to mass-produce the crackers.
• Mary and Dale had to invent their own machine to flatten the dough after finding a machine to deposit the dough onto the pan.

Financial Struggles and Investor Challenges

• The founders struggled with personal debt and took on $750,000 to get equipment and raise money.
• Initial investors were Bechtel engineers who did not understand the food business and pressured the founders to be profitable.
• Board members advised founders to shut down the business due to lack of profitability.
• Founders needed to raise a million dollars to move into their own production facility and sought institutional or venture money.

Growth, Acquisition, and Personal Challenges

• Despite legal battles, the company grew by 40% in a year and had 250 employees and $30 million in revenue.
• Japanese company Kameita approached the founders to buy their company before they were ready.
• Kameita’s US subsidiary made an offer to buy the founders’ company at the end of 2020 for around $45 million.
• The founder’s marriage ended about a year after the acquisition due to different paths and toll of the business.

Summary

Creating a Healthy and Satisfying Gluten-Free Snack

Mary Waldner’s journey to creating Mary’s Gone Crackers began with her own struggle with gluten sensitivity and the need for a satisfying gluten-free snack. She experimented with a mixture of seeds and gluten-free grains to create a healthy and tasty cracker. The challenges of going gluten-free, such as missing out on social eating experiences, motivated Mary to create a snack that could fill that void.

Overcoming Health Challenges and Diagnosis

After being diagnosed with celiac disease at 43 years old, Mary felt relief and validation for her lifelong health struggles. She discovered that celiac disease can often go undiagnosed for years, even with doctors. Going gluten-free brought noticeable health improvements for Mary and inspired her to share her journey with others.

From Homemade Snacks to Mass Production

Mary’s homemade gluten-free crackers gained popularity, leading her and her husband Dale to explore mass production. They realized that most food is co-manufactured and sought out co-packers to help them scale their production. Inventing their own machine to flatten the dough was a crucial step in streamlining their manufacturing process.

Financial Struggles and Investor Challenges

The founders faced personal debt and took on significant financial risks to grow their business. Initial investors who lacked understanding of the food industry pressured them to be profitable. Board members even suggested shutting down the business due to its lack of profitability. Raising funds to move into their own production facility became a necessity.

Growth, Acquisition, and Personal Challenges

Despite facing legal battles, Mary’s Gone Crackers experienced significant growth, with 40% revenue growth and a workforce of 250 employees. The founders were approached by Japanese company Kameita for acquisition. The acquisition brought manufacturing expertise from Japan, but it also took a toll on the founder’s personal life, leading to the end of her marriage.

Conclusion

Mary Waldner’s journey of building Mary’s Gone Crackers showcases the challenges and triumphs of creating a successful business in the gluten-free market. From her personal health struggles to overcoming financial obstacles and navigating investor challenges, Mary’s dedication and commitment to her vision paid off. The acquisition by Kameita’s US subsidiary further solidified the success of Mary’s Gone Crackers. Despite personal sacrifices, Mary found joy in how her product helped people and saved lives, making the journey ultimately worth it.