Anthony Alcazar, the co-founder of Mr. Tortilla brand, wanted to make tacos healthier, so he and his brother, co-founder Ronald Alcazar, developed a low-carb tortilla. The product, made with organic flour, contains no sugar or cholesterol and has 15 net calories per serving.

Anthony Alcazar says he thought the health-conscious product would be a hit. But stores were skeptical, and the Alcazar brothers could not get their product on many store shelves.

Alcazar says that part of the problem with getting distribution came down to what he calls “business bullying.” Alcazar says this is when established brands make arrangements with retailers to guarantee shelf space make it difficult for newcomers to compete. But rather than give up, Ronald Alcazar suggested setting up online — with an ecommerce website of their own and a presence on Amazon.com.

The brothers saw the Amazon marketplace as their best chance to get their products in front of consumers because they would not have to compete for shelf space with other brands.

“On Amazon, the customers decide who is No. 1,” Anthony Alcazar said.

Sales growth on Amazon

Mr. Tortilla started selling on Amazon.com in 2020, and the decision paid off, Alcazar said. Sales in 2021 were 3,000% higher than in 2020, when the brand started selling on Amazon. As of  Oct. 10, Mr. Tortilla had two products listed among the top-selling tortilla flatbreads on Amazon.com. Alcazar said the brand is profitable and projects sales above $15 million this year. He expects the retailer to almost double that in 2023, partly due to new products introduced in 2022. The brand’s new products include salsa, tortilla chips, cookies and pancake mix. Its latest product is a bacon seasoning called Crunchy Vegan Bake’n.

Deciding to sell online was “the pivot of a lifetime,” Alcazar said. But he and his brother learned as much as they could about digital marketing, including social media “on the fly.” Alcazar said working with Amazon was a great experience for Mr. Tortilla. Without providing details, Alcazar said the Amazon team “went above and beyond” at each step of the process to help the brand succeed.

He said 90% of Mr. Tortilla’s sales are made online, including the one-third generated on Amazon. But the brand also sells to distributors, wholesalers and restaurants in the United States, Canada and the United Kingdom.

“The goal is to have a variety of SKUs available across all major retailers” over the next three to five years,  Alcazar said.

Mr. Tortilla also will participate in Amazon’s Prime Early Access Sale on Oct. 11 and 12, Alcazar said. During the sale, the retailer will offer up to 30% off on tortillas, chips, salsas and baking mixes.

Seeking investors

Alcazar said numerous Amazon aggregators — firms that acquire successful Amazon sellers with the idea of making them more profitable — have approached Mr. Tortilla to buy the brand. But Alcazar says this is not a good time in the company’s development to sell it outright. He wants an investor willing to help fund expansion at “a fair valuation” but has not yet found the right partners.

“The fantastic customer feedback to our growing selection of products speaks volumes,” Alcazar said. “It’s now time to take Mr. Tortilla to the next level with the support of financial growth partners.”

Data shows the tortilla market in the U.S. and worldwide is growing. The U.S. tortilla market, measured by the revenue of tortilla producers, will be $5.7 billion in 2022, says market research firm IBISWorld. The firm also says the U.S. tortilla market size grew by an average of 5% per year between 2017 and 2022. Meanwhile, market research firm Grand View Research expects the overall U.S. grocery market to grow at a compound annual growth rate (CAGR) of 3% from 2022 to 2030.

Brandessence, another market research firm, says global tortilla sales were $43.7 billion in 2021 and expects the market to reach $64.50 billion by 2028. That would represent a 5.72% compound annual growth rate.

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