Square in the middle of the day had an exciting journey to where it is today, including an idea founded in a kitchen, a rejected acquisition from a chocolate giant, and a disproved music video .
The Canada-based company was founded by Nick Saltarelli, his wife, Lezlie Karls, and her brother, Jake Karls in 2018 after coming from diverse backgrounds in areas such as product development and marketing. Products.
The startup was born from Lezlie Karls’ initial desire to be in the plant-based food business when she came up with the idea for Mid-Day Squares’ first product, Fudge Yah, in her kitchen. me. It’s a double layer of chocolate, thick on top and soft on the bottom, packed with fiber, protein, and Omega-3s to help satisfy those post-lunch hunger pangs – hence the middle of the day.
CEO Lezlie Karls told TechCrunch: “When we walk down the grocery aisle, we see that people are looking for more protein and less sugar. “We saw a white space for functional chocolate. There are plenty of chocolate bars out there, but no one makes chocolate that offers the same benefits as fiber and keeps you full.”
Nearly four years later, one flavor is now three flavors, with Almond Crunch and Peanut Butta joining the lineup.
Mid-Day Squares co-founders, from left, Jake Karls, Lezlie Karls and Nick Saltarelli. Image credits: Square in the middle of the day
Lezlie Karls and Saltarelli describe themselves as introverts and want to attract someone who can help create a community. That’s where Jake Karls comes in. At the time, he was running a clothing business on the university campus, hosting parties with hundreds of people, and working on social media channels.
One thing that thrills him when he joins his sister and brother-in-law is that he realizes the food and drink space is working from an older play and doesn’t make much noise. That’s the opposite of what they’ve seen for Midday Square.
“I asked them, ‘what if we were different people who tell stories that connect emotionally? ‘ said Jake Karls. “I showed them a slide of a rock band and told them here’s the strategy: We’re going to be a rock band, but we’re going to sell chocolate, showing the good, the bad, and the ugly by means of the business. social media. Then people will feel like they are buying from a friend because they know us.”
This method was tested in 2021, Hershey wants to buy the company. After deciding the deal wasn’t for them, the company received a cease-and-desist letter from Hershey’s about using orange for its packaging, which didn’t matter. They responded with a music video titled “Chocolate Gone Crazy.”
Today, the company has a retail share of 65% in-store and 35% online. You can buy these bars at more than 2,400 stores, including Whole Foods and Sprouts nationwide. It also has a partnership with Target to place the Mid-Day Square within a six-mile radius of most Americans.
Mid-Day Squares is currently considering a fourth flavor and has raised a third $10 million fund to push that forward and expand to other retailers, convenience stores and internationally to the UK, Latin America and Asia.
In addition to the fourth flavor, they plan to launch a fifth flavor in 2023 and have two more in the pipeline.
Saltarelli considers the new funding a Series C, mainly because the company does not want to receive convertible funds. Mid-Day Squares previously raised $7.5 million, and with the latest investment, has a pre-money valuation of $35 million.
The top investor in the round is Siddhi Capital, joined by BFG (Boulder Food Group), Selva Ventures, Harlo Entertainment, and a group of individual investors, including Peter Burns, David Cynamon, Mike Fata, Bobby Parrish , David Meltzer, Noah Brennan, Clayton Christopher, Gurdeep Prewal, Dylan Barbour, Rachel Mansfield, Elly Truesdell and Alexandre Guertin.
The company, on average, sells 13 bars per store per week per flavor and ends 2021 with $8 million in sales. Saltarelli is expected to double by the end of the year. He has an ambitious goal of hitting $100 million in sales by 2025, and the company has its own manufacturing plant with the capacity to produce the capacity it needs to get there.
Saltarelli also suggested that when the investment runs out, Mid-Day Squares will likely be listed on the Canadian stock exchange.
Lezlie Karls adds: “We’re building a brand, not just to be a shelf product, but to build a deep community. “People get tired of buying from corporations they don’t know who is behind it. We are offering a $3.99 square to be a part of this journey with us. ”
