“I had no plan beyond I am going to sell candy online…and then we had our first launch, and we sold 20,000 bags in an hour, then the next 20,000 in thirty minutes. But then it started leveling off, and I knew I had to get it into stores.” – Maxx Chewning, founder of Sour Strips
In this episode of Table Talk, an ongoing series to explore industry trends and issues with business owners in the food and beverage space, LP Partner Kevin Slaughter and Thomas DeMinico of BMO Capital Markets host Maxx Chewning, founder of Sour Strips, which was acquired by Hershey in 2024. Their conversation covers topics including:
Lessons learned from startup to acquisition. Maxx shares how he founded his candy brand Sour Strips without a concrete business plan beyond his personal passion for the product. He also revisits the unique conditions of the pandemic, and how his large social media following helped him build excitement for Sour Strips and drive consumers to try it.
The role of an agile/flexible mindset. The path from idea to successful product included many twists and turns, and, like most founders, Maxx learned on the job. He shares his biggest mistake – initially pricing his product too low – and how he pivoted.
Scaling through smart manufacturing. Maxx describes how he evaluated several manufacturers across the country as he looked for a partner who could provide the high quality and customization he was looking for. Through trial and error – and refusing to compromise on the vision he had for the packaging and product – he finally found the right partner.
Preparing for an acquisition. While Maxx wasn’t actively seeking a buyer for his brand, Hershey’s interest in acquiring Sour Strips came at an advantageous time. One of Maxx’s central goals in founding the business was to ensure that his candy would become a legacy brand. The offer from Hershey represented a chance to fulfill that goal. Max shares his experience with the required due diligence, and talks about the value his lawyers brought to the process in advocating for his interests.
Maxx Chewning’s candid take on the acquisition of his candy brand is one of Table Talk’s most popular episodes and a great example of the podcast’s insightful conversations with business owners in the food and beverage space. Table Talk tells the stories behind the headlines and deal announcements, providing a space for real entrepreneurs to share the highs and lows of their business journeys, and for listeners to access the hard-earned wisdom and advice that can position them for success.
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
