King Arthur Baking Co., the oldest flour company in America, continues to rise to new heights while facing modern challenges and opportunities. Founded in 1790 during George Washington’s presidency, the company has undergone immense changes over centuries. But nothing could have prepared them for the unprecedented surge in demand triggered by the COVID-19 pandemic.
The pandemic triggered a six-fold rise in demand for King Arthur’s products almost overnight, catapulting the Norwich, Vermont-based company into a whirlwind of supply chain management and production boosts, especially for hot items like bread flour. CEO Karen Colberg, who came on board in 2005 after a marketing stint at Gap Inc., highlights how the company leaned on its long-established strengths to handle the surge.
“We built trust with the baker over decades,” Colberg explained. “We didn’t have to react in the moment. That’s what we always did.”
King Arthur’s mail-order business, making up 30% of its sales, and its vast online collection of recipes and baking tips proved vital during the pandemic. The love for home baking has yet to fizzle out post-pandemic; bakers are now diving into more complex ingredients. The company’s website traffic for sourdough goodies has doubled compared to last year.
To ride this wave of enthusiasm and grow its market beyond New England, King Arthur plans to launch a series of baking schools nationwide, with the first set to open in early 2026.
The Rise of Home Baking and Economic Pressures
Home baking has become a stress-relieving and cost-effective hobby despite economic and inflationary pressures. “Baking is not only an escape – people say they do it for stress relief – but it’s also a less expensive way to bake a nice artisan loaf of bread,” said Colberg. A home-baked sourdough loaf can match the quality of a bakery-bought one, often costing $6 to $8, offering significant savings for avid bakers.
Over the past decade, King Arthur Baking has focused heavily on innovation, introducing gluten-free versions of its bread flour. This was a significant advancement, as it addressed the needs of gluten-free consumers who often had to forgo bread. Additionally, the company recently launched bread mix kits, which include basics like pretzel bites and focaccia, allowing bakers to create fresh bread from box to table in about an hour.
“Our business has definitely transformed so that we can be less dependent solely on flour, but flour is in everything we do,” Colberg noted.
Employee Ownership: A Unique Business Model
King Arthur Baking is an employee-owned company that fosters a strong collective ownership and collaboration culture. “It’s a wonderful gift to give this long-term opportunity to employees to continue to grow and own the company. It’s very instilled in our culture,” Colberg said. This structure proved invaluable during the pandemic when the company faced immense uncertainty. Employees united to find solutions, showcasing a spirit of teamwork and adaptability.
Leadership and the Future
Reflecting on the company’s co-CEO structure, Colberg credits the board for recognizing the balance of skills among the leadership team. “It works because of who you are as individuals. It requires humility, recognition of what each person can bring, and vulnerability in communications,” she said.
Looking ahead, King Arthur Baking aims to build on its rich legacy while embracing modern trends and consumer demands. With plans to expand its physical presence through baking schools and continuous innovation in product offerings, the company is poised for sustained growth.
