Mid-Day Squares has had an interesting journey to where it is today, including an idea founded in a kitchen, a declined acquisition from a chocolate giant and a music video rebuttal.
Nick Saltarelli, his wife, Lezlie Karls, and her brother, Jake Karls, founded the company in Canada after coming from different careers.
The idea for Mid-Day Squares came from Lezlie Karls desire to get into plant-based foods. It is a double layer of chocolate that is soft on the bottom and has fiber and Omega 3 to help you satisfy your hunger after lunch.
When walking the grocery aisle, we saw that people were looking for more nutrition and less sugar, according to CEO Lezlie Karls. There are a lot of chocolate bars, but no one is making chocolate that gives benefits like fiber and fills you up.
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Jake Karls, Lezlie Karls, and Nick Saltarelli are the co-founders of Mid-Day Squares. The image is from the Mid-Day Squares.
Lezlie Karls and Saltarelli wanted to create a community with someone who could help. Jake Karls comes in. He was running a clothing business on college campuses, hosting parties with hundreds of people, and working the social media channels.
He realized the food and beverage space was not making much noise and that swayed him to join his sister and brother-in-law. That was not the same as what they saw at Mid-Day Squares.
Jake Karls said that he asked them if they were the different ones. People will feel like they are buying from a friend.
The method was tested when Hershey wanted to purchase the company. The company received a cease-and-desist letter from Hershey after they decided the deal wasn't for them. They made a music video called Chocolate Gone Crazy.
The company has a mix of both in-store and online retail. The bars can be found in more than 2,400 stores. Target will put Mid-Day Squares within a six-mile circle of most Americans.
Mid-Day Squares took in its third fundraise of $10 million to get the ball rolling on an expansion into other retailers, convenience stores and internationally into the U.K., Latin America and Asia.
They have two more in the product line and plan to launch a fifth in 2023.
Saltarelli considers the new funding a Series C because the company did not want to take on convertible notes. Mid-Day Squares raised $7.5 million and has a $35 million pre-money valuation.
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The lead investor in the round was Siddhi Capital, which was joined by a group of individual investors, including Peter Burns, David Cynamon, Mike Fata, Bobby Parrish, David Meltzer and Noah Brennan.
The company sold 13 bars per store per week and ended the year with $8 million in revenue. At the end of the year, Saltarelli expects to see double that. The company has a manufacturing plant that can produce enough capacity to reach the $100 million revenue goal.
Mid-Day Squares will likely be in a position to go public in Canada when the investment ends.
Lezlie Karls said that they are building a brand, not just a product, but to build a deep community. We are offering a square for $3.99.
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