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In 2012, Ethan Frisch experienced a revelation when he first tasted wild cumin sourced from Afghanistan’s Hindu Kush mountains. A former chef with a background in a Michelin-starred restaurant in New York, Frisch was in rural Afghanistan as a program coordinator for the Aga Khan Development Network, an organization dedicated to improving rural development, health, and education across Asia and Africa.
The spices he discovered during his travels, even from small roadside stalls and local eateries, were exceptionally vibrant. “I thought I had a good spice cabinet at home, but I soon realized I was missing out on a diverse range of spices that were largely unavailable in the U.S.,” reflected the now 38-year-old Frisch.
This newfound appreciation for high-quality spices led Frisch and his friend Ori Zohar, 39, to establish Burlap & Barrel, a New York-based company dedicated to sourcing spices directly from small-scale farmers around the globe. Both invested about $20,000 to get the business off the ground in 2016; Frisch utilized his life savings, while Zohar redirected funds from his now-defunct mortgage tech startup.
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Frisch states that the business has been profitable from the outset. Burlap & Barrel’s gross revenue skyrocketed from around $100,000 in its inaugural year to nearly $8 million projected for 2024, based on financial documents examined by CNBC Make It.
A crucial element of their strategy is sourcing spices directly from farmers. During his three years in Afghanistan, Frisch cultivated relationships with a network of small-scale farmers across countries like Guatemala and Zanzibar, significantly benefiting their partners. This model eliminates the need for industry middlemen and allows the company to compensate farmers at rates between double to over ten times what they typically earn for their crops.
Transforming an Apartment into a ‘Spice Warehouse’
While $40,000 may sound like sufficient startup capital, the costs associated with travel and sourcing spices led Frisch and Zohar to operate from Frisch’s Queens apartment rather than rent office space. His apartment was officially designated as a “spice warehouse” by the U.S. Food & Drug Administration, which allowed them to work from home.
The pair didn’t draw salaries until 2018; during this time, Frisch relied on unemployment benefits and existed primarily on eggs as they focused on selling to local restaurants. They started taking minimum-wage salaries in 2018 and gradually transitioned to more sustainable incomes the following year.
As they grew their community, a surge in at-home cooking during the COVID-19 pandemic shifted their business landscape. Faced with the shutdown of many restaurants — their primary revenue source — they found unexpected prosperity as home cooks began purchasing higher-end spices online. A Bon Appetit review of their Vietnamese cinnamon in February 2020 significantly boosted their visibility.
“By May, home chefs had more than compensated for the losses we incurred from restaurant sales,” Zohar noted, with Burlap & Barrel achieving approximately $3 million in sales for 2020. The company now operates from warehouses located in Las Vegas and Hagerstown, Maryland.
Burlap & Barrel has gained recognition through collaborations with notable chefs like Martha Stewart and Marc Murphy, along with notable placement on FX’s show “The Bear.” Their appearance on “Shark Tank” in April 2023, inspired by Zohar’s mother, significantly drove web traffic to their site during the airing.
‘We Anticipate Significant Growth in the Coming Years’
Despite their success, Burlap & Barrel faces challenges in maintaining its upward trajectory. Pricing presents one significant hurdle; while their products are comparable to luxury spice brands, they are still higher than standard grocery options. A 1.8-ounce jar of their popular Royal Cinnamon retails for $9.99, markedly higher than the $6.66 for a 4-ounce jar from McCormick.
Frisch and Zohar anticipate reaching the limit of new customers willing to pay premium prices, especially in an environment where grocery costs are rising. To counter this, they consider diversifying their product range beyond spices, having previously introduced single-origin sugars and recently partnered with the Jane Goodall Institute on honey sourced from Tanzania.
Additionally, the company must navigate tariffs imposed by the Trump administration. Burlap & Barrel imports spices from countries affected by tariffs, which could increase their importation rates significantly; for instance, tariffs on spices from Vietnam could reach 46%, while those from India might be as high as 26%.
Frisch mentioned they plan to bear any additional tariff expenses temporarily, but the unpredictability of the tariffs has led them to adjust their sales forecasts for 2025. They now aim to meet, rather than exceed, 2024 revenue figures, which would still ensure profitability.
Looking toward the future, the co-founders remain optimistic. If the tariffs are rescinded, operations could return to normal; conversely, economic downturns could lead more consumers to favor home cooking over dining out. “We expect to experience significant growth in the coming years,” Zohar asserted, emphasizing the disappointing quality of many spices available in typical grocery stores.
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