“We launched Mid-Day Squares in our condo kitchen on August 4, 2018. And the idea was: build the biggest afternoon snacking company in the better-for-you space, globally. And we just blocked out all the negative noise of the people who said it was impossible,” — Jake Karls, co-founder and rainmaker of Mid-Day Squares
In a recent episode of Table Talk, an ongoing series exploring industry trends and issues with business owners in the food and beverage space, LP Partner Kevin Slaughter and Thomas DeMinico of BMO Capital Markets hosted Jake Karls, co-founder of snack brand Mid-Day Squares.
The group discussed the mission and motivation behind the rapidly growing brand and touched on topics including:
The market gap that Mid-Day Squares was designed to solve.
In creating Mid-Day Squares, Jake and his co-founders asked themselves how they could give consumers a snack that would fill them up and taste delicious but also provide nutritional support to help them avoid the crash that typically follows more carb-heavy snack foods. To answer the question, they looked to the data.
At the time, there was growth in two product categories: products containing real chocolate and products made from plant-based proteins. They combined the two into a two-texture square that contains protein and fiber.
How consumers evaluate protein in the better-for-you space.
As food companies and influencers continue to share nutrition information, the consumer is adopting a more nuanced understanding that not all sources of protein are created equal, and that protein is just one of many important ingredients in better-for-you products. Instead of focusing exclusively on protein, Jake and his co-founders decided to create a snack that balanced great taste with nutritious ingredients.
As Jake says, if you just build a great product, the consumer will reward you.
The importance of a process for sharing open and honest feedback within the team.
From the beginning, Jake and his co-founders (who are also family members) have invested in ongoing therapy with a psychologist who works with executive teams to facilitate their alignment and communication. This has helped the three founders develop trust that each of them will perform at the highest level in their respective business domains.
The moment the founders realized they were really onto something.
When Mid-Day Squares was founded, Jake’s co-founders set a first-year revenue goal of $250,000. Jake thought that number was impossibly high, but he trusted them, and they decided to go for it. The company met its goal within the first three months.
That’s when Jake knew they were onto something real.
Navigating volatility in the cocoa market and how it changed the strategy.
For a product with cocoa as one of its primary ingredients, the global cocoa crisis was one of the most challenging moments in Mid-Day Squares’ journey. Rather than raising prices, the co-founders decided to innovate outside of cocoa. Investigating other snacks that were attracting attention led to the creation of the brand’s newest flavor, the No Bread PB&J, the first of its kind in the better-for-you snack market.
Delivering informative conversations with business owners in the food and beverage space, Table Talk tells the stories behind the headlines and deal announcements and provides a space for real entrepreneurs to share the highs and lows of their business journeys.
About Levenfeld Pearlstein LLC
Levenfeld Pearlstein, LLC provides legal and business counsel to sophisticated clients across a broad range of corporate, tax, real estate, estate planning, and litigation matters. LP works with clients to understand the full impact of the law on their businesses and proactively addresses their legal issues so that they can quickly return to doing what they do best. While the firm possesses the resources and depth necessary to manage the most complex matters as efficiently and cost-effectively as possible, it truly differentiates itself through its commitment to “The LP Way” – the firm’s model for creating an exceptional client experience. Visit our website at www.lplegal.com and follow us on LinkedIn at @levenfeld-pearlstein.
About BMO Financial Group
BMO Financial Group is a highly diversified capital and financial services provider with a long-standing history working with middle market businesses. Whether you’re expanding through acquisition or are ready to transition the business, BMO’s Middle Market M&A group takes a high-touch advisory approach, leveraging the full breadth of BMO’s investment banking and commercial banking capabilities to provide clients with sell-side, buy-side, minority recapitalization, structured equity raise, and growth equity raise advisory services across the industrials, food, consumer & retail, tech & business services and healthcare spaces. To learn more, visit commercial.bmo.com/MidMarketMA
