How Challenger Brands Like Chubby Snacks Gain The Upper Hand

Dillion Ceglio’s journey as a food entrepreneur started with a simple question: why hasn’t anyone created a healthier version of Uncrustables? Finding an answer, however, wasn’t nearly as easy.

Ceglio is the co-founder and CEO of Los Angeles-based Chubby Snacks, which markets nut and seed butter and jelly sandwiches that the company describes as “cloud-shaped.” The individually wrapped sandwiches, which are typically sold frozen, are made with peanut, sunflower or almond butter and strawberry or grape jam, with each sandwich containing 8-9 grams of protein, 6-7 grams of fiber and only 2 grams of sugar, depending on variety.

Launched as a direct-to-consumer brand in 2020, Chubby Snacks is distributed at several natural and regional retail chains, including Whole Foods, Central Market, Jimbo’s and Gelson’s and recently entered c-store chain Kum and Go. The company has raised approximately $5 million over the past two-and-a-half years from an investor pool that includes The Angel Group founder Adam Spriggs, actor Patrick Schwarzenegger and Villam Ventures, the family office of RXBar’s cofounder Jared Smith.

In this episode, Ceglio spoke about his initial vision for Chubby Snacks, the duality of building a brand that is inextricably aligned with its primary competitor, why he strives to be an expert in everything related to the production and sale of Chubby Snacks, and why he believes that entrepreneurship shouldn’t necessarily be viewed as a fun job.

Show notes:

0:48: Interview: Dillon Ceglio, Co-Founder & CEO, Chubby Snacks – Ceglio met with Taste Radio editor Ray Latif in New York City where he spoke about the origins of Chubby Snacks and the meaning behind its name, how the company attempts to communicate the better-for-you attributes of the products and his perspective on the brand’s inherent association with Uncrustables. He also shared learnings from his initial foray into self-manufacturing and the evolution of the company’s production strategy, how his active presence and engagement on Linkedin has benefited Chubby Snacks, and how it leveraged strong direct-to-consumer sales to build its presence at retail chains. Later, he discussed Chubby Snacks’ decision to enter the convenience store category, how he overcame two significant challenges that each had the potential to ruin the company and why fun isn’t top of mind when he’s working.

Brands in this episode: Chubby Snacks, Uncrustables, TBH