BOULDER CREEK, CALIF. —  After Santa Cruz Fungi’s founders Paul Lazazzera and Katie Sarna shut down their Boulder Creek, Calif., mushroom farm in April 2023, they turned their interest in mushrooms into their new company called Santa Cruz Fungi and its innovation — Shroomsicles — mushroom-infused frozen novelties.

“It’s hard to get people excited just about mushrooms, especially something like lion’s mane,” Lazazzera said. "Despite our love for mushroom cultivation, we decided to focus our energy on our mushroom-infused products.”

Their product development efforts led them to focus on the sweeter side of fungi.

“We thought, ‘How do we get this (mushroom) into a dessert?’” Sarna said. “That’s also what put us down the path of the sweet form. We could see ourselves being similar to gummy vitamins, which are basically candy, but you’re getting hidden things tucked in. We were going to be the gummy vitamins of the frozen aisle.” 

The company’s initial innovation began as a mushroom-infused mousse.

“They (the mousses) were going bad really fast because we don’t use any artificial preservatives,” Lazazzera said.

Diving deeper into innovation, Sarna had the idea to freeze the mousse.

“We knew right away we’ve got something here,” Lazazzera said.

The mushroom-infused novelties quickly became popular among friends, family and the local community, the company said.

The new products are available in several flavors, including Key Lion’s Mane Pie, Strawberry Lion's Mint, Chagaccino, Turkey Tail Pupsicle, Chag-olate, Cotton Candy, Tremella Lematcha, Cordy Creamsicle and Porcini Pumpkin Pie.

Photo: Santa Cruz Fungi

The mushroom-infused novelties come in three bases to “cater to a variety of tastes and dietary preferences”: a creamy base, which is formulated from cashews, coconut milk; a coconut water base, which is formulated from fruit juices and fruits ; and a water base.

“By incorporating different ingredients, like coconut milk or fruit juices, we can complement the unique flavors of the mushroom extracts,” Lazazzera said. 

To keep the ingredient list clean, the company uses honey as its sweetener.

“We looked at every ingredient and made sure everything we were putting in there had its own health benefits and nutritional benefits,” Lazazzera said. “We have done our best to keep it as minimally sweet as possible.”

Knowing mushrooms may not be palatable to all audiences, the company’s goal was to “hide the mushroom flavor,” Lazazzera said.

For the mushroom-loving consumer, the company has developed some mushroom-forward flavors.

“We’ve been making a seasonal recipe each year,” Lazazzera said. “Last year was porcini pumpkin pie where you can taste the porcini and it has that real umami flavor in there. This year we have a cotton candy cap mushroom. They’re generally considered a sweet mushroom because they have a potent maple syrup flavor.”

The novelties are manufactured by Sarna and Lazazzera. They said they plan to grow by “staying true to its core values of ingredient quality, production methods and plastic-free packaging.”   

“There’s too many things we'd have to compromise on,” Sarna said. “We do not use any plastic (in the packaging) because the responsibility to the environment has been a core value for us since our farming days when we used reusable food-grade buckets instead of single-use plastic bags. Our bags are made from FSC-certified (Forest Stewardship Council) wood-cellulose bioplastic that decomposes in 10 weeks. Our formula, too, is not really conducive to factory manufacturing.

“We believe by prioritizing quality and authenticity; we can achieve long-term growth while maintaining the integrity of our brand.”

Even Shroomsicle’s molding is different than traditional funnel-shaped frozen novelties.

While the founders initially thought the company’s signature mold was “silly” they have found it often puts a smile on consumers’ faces.

“Our mold is a round smiley face,” Lazazzera said. “Originally when we were looking at which molds to use Katie was like, ‘Oh this is it.’ (And) I was like, ‘No, who cares what shape it’s in.’ Over the 1,000 people who have eaten our products said it’s super evident the second they pull it out and see it.”

Having recently celebrated its first anniversary, the company is planning to keep distribution local —  as the founders feel they have found their niche —  in  boutiques, natural skin care shops and mom-and-pop grocery stores.

“We want to keep getting it (Shroomsicles)  out there and expand more into wholesale,” Sarna said.

Lazazzera added, “We’re going to stick around here, stay small and fill a cool little niche. It’s just the two of us right now, it’s a lot of work.” 

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