Have Sound Financials: A great idea can’t succeed without financial discipline. At Four Sigmatic, we prioritized sustainable growth and made sure we had a solid financial foundation before expanding too quickly. This approach allowed us to weather challenges and make strategic decisions without compromising the quality of our products or the mission of our brand.
Asthe appetite for foods that offer health benefits beyond basic nutrition continues to grow, the market for functional foods has exploded. Consumers are no longer just asking for delicious flavors; they demand that their foods also support their lifestyle, health, and well-being. This intersection of function and flavor is not just a trend; it’s a movement towards a future where every bite counts towards better health. As a part of this series, I had the distinct pleasure of interviewing Tero Isokauppila.
As the Founder and CEO of Four Sigmatic, Tero Isokauppila has a mission to increase overall health through mushrooms with added benefits. With over 12 years of experience in leading a global mushroom movement, Tero has infused functional mushrooms and adaptogens into products that millions of people love, such as coffee and protein. Tero’s passion for mushrooms and adaptogens stems from his Finnish roots, where he grew up on a family farm that dates back to 1619.
Thank you so much for joining us! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’?
Igrew up in Finland on a farm my family has owned at least since 1619. Mushrooms and coffee have been a part of my upbringing from an early age. Finnish people drink more coffee than any other country in the world per capita (more than 2x Americans), but during WW2 there was a shortage of coffee beans which led to using our ancient mushrooms as a coffee substitute for focus and energy. This inspired me to found Four Sigmatic and create the original mushroom coffee. Fast forward and today mushroom coffee is a billion-dollar category. Four Sigmatic is regularly a Top 3 ground coffee on Amazon and the #1 functional bagged coffee in retail with over 100 million sold cups.
Can you share with us the most interesting story from your career? Can you tell us what lessons or ‘takeaways’ you learned from that?
One of the most interesting stories from my career is how my Finnish upbringing on a 13th-generation farm inspired the founding of Four Sigmatic. Growing up, I foraged wild mushrooms and learned about natural remedies from my parents. This deep connection to nature and wellness was second nature to me, but when I began to travel, I realized how rare it was outside of Finland. I saw an opportunity to introduce the wellness benefits of functional mushrooms to the West through everyday beverages like coffee and tea. But at the same time, I feel like the mushrooms chose me and not the other way around.
Moving from a Finnish company to starting Four Sigmatic in the U.S. brought its own set of challenges. In Finland, there’s a strong cultural focus on sustainability, simplicity, and connection to nature. Transitioning to the U.S. market required adapting to a different pace, more aggressive competition, and a different approach to marketing. However, this shift also taught me the value of blending those Finnish principles with the American entrepreneurial spirit. It was a balance of staying true to my roots while adapting to new business realities.
The biggest lesson I’ve learned is the importance of embracing change while staying grounded in your values. My heritage and connection to mushrooms were my foundation, but curiosity and openness to different cultures and markets allowed me to create something impactful. Another takeaway is that passion for your mission makes it easier to educate others and change perceptions. By making mushrooms fun and approachable, we’ve been able to shift how people see these amazing superfoods.
You are a successful leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
- Being Bold: Starting Four Sigmatic meant taking a bold stance. Introducing functional mushrooms to the U.S. market was challenging, but I believed in shifting the perception of mushrooms as powerful superfoods. That boldness turned a niche concept into a mainstream wellness movement.
- Being Curious: My curiosity drove me from a Finnish farm to global travels, where I learned how other cultures used mushrooms for wellness. This curiosity led me to bring these traditions to the West, constantly innovating and adapting as a leader.
- Being Resilient: Launching a new product in a new market wasn’t easy, especially with skeptics. Resilience helped me push through early challenges, and our tribe of mushroom enthusiasts continues to grow because I stayed true to our vision.
Are you working on any exciting new projects now? How do you think that might help people?
We recently launched new multi-serve instant teas powered by functional mushrooms and adaptogens. They’re offered in a unique, easy-to-prepare, multi-serve format without tea bags or sachets, and can be enjoyed hot or cold. The line consists of five delicious varieties: Think, Calm, Protect, Mood, and Happy Gut.
Within the last year, I also created a YouTube channel where I post weekly videos on health, entrepreneurship, personal development, and parenting + a series on everything you need to know about mushrooms!
Ok, thank you for all that. Now let’s shift to the main focus of our interview. To begin, let’s start with a definition so that all of us are on the same page. What does Functional Food mean to you?
To me, functional food goes beyond basic nutrition — it’s food that actively supports your health and wellness in specific ways. Functional foods are packed with ingredients that have additional benefits, such as enhancing energy, focus, immunity, or digestion. These foods serve a purpose beyond just filling you up; they help your body function better.
What inspired you to get involved in the functional foods industry? How does that relate to your personal life and values?
Mushrooms and coffee have been integral parts of my life, and I have witnessed firsthand how mushrooms improved my life and the lives of those around me. Functional mushrooms not only replenish the body with essential nutrients, but also equip us with tools to better manage life’s inevitable stressors.
Today, many people seek healthy and natural ways to stay focused, energized, and vital. However, the demands of modern life can make it challenging to maintain or begin new routines. I realized that the best way to help people benefit from functional mushrooms was to keep it simple and enhance existing staples such as coffee, protein powder, and tea. My goal was to create products that are both delicious and effective to make it easy and enjoyable for people to experience the benefits of mushrooms.
Coffee is consumed daily by more than 73% of Americans, with most people drinking between 3–5 cups per day. I found that most coffees on the market were neither third-party tested nor organic, and none had added functional ingredients like mushrooms and adaptogens. I felt that people would benefit from a higher quality coffee that offers more — more focus and sustained energy, with fewer jitters, crashes, and toxins.
Can you share your insights on the growing demand for functional foods in today’s market? How has this demand evolved over the years, and what do you attribute this change to?
Most health trends come and go, and it’s important to recognize that mushrooms are not a single ingredient having its moment in the sun. Instead, we like to zoom out and remind people that Fungi are an entire biological Kingdom. I believe that functional foods and beverages will continue to be the vehicle that drives functional mushroom adoption amongst consumers.
We are just at the beginning of remembering how important fungi are in our worlds — including our health and diet but beyond that as well, for their incredible ecological potential. We are grateful the West is more open to mushrooms now than they have been in the recent past.
Can you discuss the process of balancing taste with nutritional value in product development, ensuring that flavor does not take a backseat to function?
Four Sigmatic uses certified organic, rigorously tested functional mushrooms without filler grains or mycelium to deliver effective benefits in a delicious way. We use only mushroom fruiting bodies that are log-grown or wildcrafted, mimicking the way these mushrooms have been used for thousands of years by cultures spanning the globe. Every ingredient and final product is 3rd party tested for heavy metals, mycotoxins, molds, yeasts, irradiation, pesticides, and herbicides before ever going to market.
We are advocates for coffee (for most people!) when it is high quality and supported by functional mushrooms to negate many of the side effects like crashes and eventually (combined with lifestyle), adrenal fatigue.
What innovative ingredients are you most excited about in the functional foods market, and how are they transforming consumer health and wellness?
At Four Sigmatic, we only use ingredients that are considered to me the most nutrient-dense and studied foods in the world. These superfoods include ingredients like functional mushrooms and other adaptogens such as ashwagandha, rhodiola, tulsi, turmeric, and ginger. We are most excited about functional mushrooms because they contain a variety of beneficial compounds that lend to their profound healing power. Many functional mushrooms contain vitamins A, B, C D, and E, minerals including potassium, calcium, and magnesium, and a variety of antioxidants. Yet the primary constituents researched in these species are polysaccharides called beta-d-glucans and triterpenes. These compounds are what make the mushrooms so beneficial to the immune system and the body’s ability to handle stressors. Research shows that functional mushrooms can help with focus, immunity, stress relief, positive mood, energy, and more. The most popular functional mushrooms include Lion’s Mane, Chaga, Cordyceps, Turkey Tail, and Reishi. Each functional mushroom offers unique benefits to the body.
Based on your research or experience, can you please share your “5 Things You Need To Create A Successful Functional Foods Brand”?
- Think Long Term: Building a functional foods brand is about playing the long game. At Four Sigmatic, we didn’t just aim for quick wins or short-term trends. We focused on creating a brand that would stand the test of time by educating consumers about the long-term benefits of functional mushrooms. By focusing on lasting impact, rather than short-lived success, we’ve been able to grow steadily and build trust with our customers.
- Make Products with a Value Proposition (Don’t Follow Trends): Rather than chasing trends, focus on the unique value your products bring. For us, this meant highlighting the health benefits of functional mushrooms, which were relatively unknown in the U.S. market at the time. We didn’t jump on fleeting health fads; instead, we created products with a strong value proposition: offering natural, scientifically-backed wellness solutions that improve health and are easy to incorporate into everyday life.
- Have Sound Financials: A great idea can’t succeed without financial discipline. At Four Sigmatic, we prioritized sustainable growth and made sure we had a solid financial foundation before expanding too quickly. This approach allowed us to weather challenges and make strategic decisions without compromising the quality of our products or the mission of our brand.
- Take Care of All Stakeholders: A successful brand takes care of everyone involved — customers, employees, suppliers, and the community. At Four Sigmatic, we work closely with our suppliers to ensure ethical sourcing, and we’re committed to providing a great experience for our customers and employees. By considering the needs of all stakeholders, we create a positive ecosystem that supports long-term success.
- Provide More Value than What You Take: The principle of giving more than you take has been central to Four Sigmatic’s mission. We focus on delivering value through our products, education, and community. Whether it’s providing customers with high-quality products that improve their health or sharing knowledge about wellness, our goal is always to give back more than we receive. This approach builds trust and loyalty, which are key to sustaining a successful brand.
How do you navigate the regulatory challenges associated with health claims on food packaging, and what advice would you give to new entrants in this space?
Navigating regulatory challenges requires a strong commitment to transparency and an unwavering dedication to quality. At Four Sigmatic, we believe that efficacy starts with quality. We ensure that the ingredients we use and the health claims we make are backed by credible research and are communicated clearly and responsibly. We third party test our ingredients for toxins to make sure we are providing the cleanest ingredients in their purest forms. For new entrants, I would advise prioritizing transparency in your messaging and being meticulous about compliance with regulations. Build a brand that consumers can trust by being upfront about the benefits of your products and ensuring that your claims are grounded in science, not marketing hype.
In what ways have consumer preferences shaped the evolution of your product offerings, and how do you stay ahead of the curve in such a dynamic market?
I think more innovation will take place in everyday products such as coffee and tea, canned RTD wellness beverages, dissolvable drink powders, and alcohol alternatives. These categories are still small but boasting continued growth year over year, and with younger populations moving away from alcohol, and more toward functional beverages — I see a lot of opportunity to infuse the benefits of mushrooms into a variety of drink categories and formats.
You are a person of enormous influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
I currently host a YouTube channel called “The Spore” where I chat about health and nutrition, entrepreneurship, personal development, and parenting. The topics vary greatly from food industry secrets, things fatherhood has taught me, unspoken financial advice, functional food education, the secret to happiness, remote vs in-office working environments, and more. My hope with this channel is to reach the most people possible in a free and engaging way — offering new perspectives to the viewers and educating them on topics that can benefit their lives and help them make more informed lifestyle choices.
What is the best way for our readers to continue to follow your work online?
This was very inspiring. Thank you so much for the time you spent on this. We wish you only continued success.
About the Interviewer: Wanda Malhotra is a wellness entrepreneur, lifestyle journalist, and the CEO of Crunchy Mama Box, a mission-driven platform promoting conscious living. CMB empowers individuals with educational resources and vetted products to help them make informed choices. Passionate about social causes like environmental preservation and animal welfare, Wanda writes about clean beauty, wellness, nutrition, social impact and sustainability, simplifying wellness with curated resources. Join Wanda and the Crunchy Mama Box community in embracing a healthier, more sustainable lifestyle at CrunchyMamaBox.com.
