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Holey Grail Raises $9 Million For Sustainable Taro Donuts

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Founded in Hawaii in 2018 by a brother and sister team, taro donut shop Holey Grail has raised $9 million in financing to date including a recent Series A from renowned skateboarder Tony Hawk and chef Christopher Kostow among others. The funds will enable the donut company – which uses sustainable, organic and fair-trade ingredients – to open a brick-and-mortar store in Los Angeles later this year.

Hana and Nile Dreiling’s business had humble beginnings. They made hand-fried donuts from taro – an ancient Hawaiian superfood – and sold them from a red trailer in Kauai. But they quickly developed a cult following, which led to people lining up at 6:30 am and waiting hours for their donuts. The brother-sister duo was inspired to add live DJ performances to entertain their devoted customers. Holey Grail then launched another food truck in Waikiki, followed by a flagship shop in Honolulu and an additional food truck in Culver City, LA.

Holey Grail donuts are made from taro, a staple of the traditional Hawaiian diet. The root is filled with nutritional, medicinal, and ecological benefits. The donuts are then fried in organic, fair trade coconut oil. The Dreilings love experimenting with flavors based on Hawaii-grown ingredients such as turmeric, tangelo, and single-origin cacao nibs. As they ready for their LA opening, the cofounders are focused on building a California-centered supply chain that includes local farmers, while also maintaining their relationship with Hawaiian growers of taro, coconut oil, and cacao.

“I never imagined I'd be growing a donut business and often laugh about this concept,” says Hana Dreiling. “As a teen, I definitely felt the push to follow society's more conventional path. The idea of ‘re-inventing the donut’ would have sounded absolutely insane at the time. But I have always had a growing curiosity about food as art and its ability to bring people together.”

Dreiling first came to Kauai in 2013 for an internship in product design. She loved it so much that she never left. She worked in catering before starting her own catering gig based on local, niche Hawaiian ingredients. “I was shocked to find that roughly 85% of Hawaiian food is imported, yet Hawaii has the climate to grow just about anything including chocolate and taro,” she says. “This got my wheels turning. Through various check-ins with my brother Nile, we came to realize that the donut is the perfect vessel to connect people to ingredients. Everybody knows and loves a good donut. This was our Holey Grail.”

The biggest reward for Dreiling is seeing the positive impact her business has on customers, peers, and employees, as well as the local community. She adds, “When you’re passionate about your purpose, that energy is contagious. It is the ‘buzz marketing’ that we all look for. When you value your work, others do, too.”

Holey Grail was fortunate during the Covid-19 pandemic in that the business is “grab-and-go” and thus did not have to shut down. However, the Dreilings did face many challenges due to supply chain and staffing shortages. They began to build their own supply chain instead of relying on third parties, which in the end helped them to expand their business. During the height of the pandemic, they also made weekly “donut drops” to frontline workers at neighborhood restaurants, hospitals, and grocery stores in Hawaii.

To those looking to following their passion in their careers, Dreiling says, “Don’t be afraid to do what you love, choose curiosity over fear, and pay close attention to how your ideas make yourself and others feel. When it comes to building a brand, do it in a community-focused way. Ultimately, it is your community that drives your success.”

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