KC-baked snack cracker startup tastes new markets, opportunities fueled by regenerative agriculture

SAN ANTONIO — Five years after the company experienced crunch time in the Kansas City-based Sprint Accelerator, Cheddies Crackers has expanded its line of high-protein, low-carb cheddar crackers into more than 2,500 retailers nationwide, said Francisco Pergola.

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Cheddies

Pergola — who co-founded the San Antonio-based snack brand with his brother Tomas — said Cheddies’ growth has been powered by an emphasis on regenerative agriculture, which the company originally pursued during the height of the pandemic as a workaround for supply chain issues that left the business “under siege.”

“All the big conglomerates started to stock up on inventory and were effectively buying all the cheese reserves,” Pergola recalled. “It made things increasingly difficult for us to find cheddar cheese, so we sat down and said, ‘How do we prevent this from ever happening again?’ and then decided, ‘How wild would it be to make our own cheese?’ That’s the only way I can think of this not happening again in the future.”

Pergola, a self-described “ag head,” made it his personal mission to exhaust every resource finding a certified regenerative organic dairy farm, he said, eventually discovering Alexandre Family Farm in California — the only one of its kind in the country, according to Pergola.

Numerous calls and a couple trips later, Pergola had successfully formed a relationship between Cheddies, Alexandre Family Farm, and supplier Rumiano Cheese — and Cheddies became the first company to manufacture certified regenerative organic cheddar on a commercial scale, he said.

“When that all came together, we were also fundraising,” Pergola said. “That made it a lot sexier for us to go out and fundraise and tell investors, ‘We have the first regenerative organic cheddar in the country. … We’re two years ahead of the competition.’”

Buoyed by that investment, Cheddies was able to expand into retailers like Sprouts, Albertsons, and Hy-Vee, Pergola said.

The snack brand has also formed partnerships with American Airlines, Google, and Amazon, he noted, adding that Cheddies is in discussions with big box stores and large gas station chains.

Francisco and Tomas Pergola, Cheddies, at Alexandre Family Farm in California; photo courtesy of Cheddies

Francisco and Tomas Pergola, Cheddies, at Alexandre Family Farm in California; photo courtesy of Cheddies

‘Utopic’ views of what’s possible

As the Cheddies brand continues to grow, Pergola described himself as a “cheerleader” for consumers rallying behind the regenerative agriculture movement.

“I would love if consumers were able to understand the benefits of supporting brands that support regenerative agriculture,” Pergola said. “I’ve spent a lot of time with farmers who have converted their land and pastures to regenerative agriculture, and it’s a super humbling experience.”

He lamented the use of pesticides and chemical fertilizers on crops, contrasting traditional methods with what he views as the “utopic scenery” of regenerative agricultural fields.

“How do people not see this as an issue?” Pergola wondered. “They’re literally spraying your food with chemicals — they’re spraying it with Roundup. There are alternatives to that that are simpler and more efficient.”

Convincing farmers — and consumers — to adopt new methods will take time, Pergola acknowledged, but he believes that regenerative agriculture will eventually grow in popularity.

“It’s going to take a while,” he said. “There are hurdles to overcome, but I think we’ll get there. … My goal is to get more people to be aware of the benefits of eating and growing food from regenerative agriculture. It doesn’t need to be expensive.”

Francisco and Tomas Pergola, Cheddies, in August 2018 at the former Sprint Accelerator in Kansas City; Startland News photo

DFA leaves an impact

Cheddies making a name for itself in the regenerative agriculture space can be tied back to the brand’s participation in the Sprint Accelerator, Pergola said, noting that Dairy Farmers of America sponsored the program. (Editor’s note: The accelerator is now the T-Mobile Accelerator and no longer shares the same association with DFA.)

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“That was an awesome opportunity, because I feel like it would have been uneducated of me to speak about regenerative agriculture just blindly without knowing the conventional side of the dairy industry, too,” Pergola said.

“That was super unique, and I have friends who are dairy farmers who were in the program, and I still keep up with them,” he added.

Pergola’s belief in the product is as strong as ever, he said, noting that he’s eaten a box every day for at least five years.

“We want to use the best quality cheese in the world,” Pergola said. “We’re Cheddies — we make the best cheese crackers. We want to use the best cheese.”