156 - Chocolate Mogul | “We’ve sold 47 million bars and we’re just warming up” | Jake Karls, Mid-Day Squares
Dec 3, 2024
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Join Jake Karls, co-founder of Mid-Day Squares, a booming chocolate brand that reached $30 million in revenue, as he shares his journey from a small Montreal deli to a national sensation. He discusses the power of authentic storytelling in building consumer trust and the challenges faced in manufacturing and financial hurdles. Jake emphasizes the importance of resilience and strategic partnerships, revealing how innovative marketing and a focus on clean ingredients transformed their snack into a cultural phenomenon.
Mid-Day Squares achieved remarkable growth by combining chocolate and plant proteins, realizing a consistent 50% year-over-year increase in revenue.
The brand employs a 'build out loud' strategy, engaging consumers through authentic storytelling and transparency about both successes and challenges.
Mental health and vulnerability are prioritized in their workplace culture, creating a supportive environment that resonates with employees and consumers alike.
Deep dives
Rapid Growth and Market Expansion
Midday Squares has experienced remarkable growth since its inception in 2018, expanding from a single location in Montreal to over 9,000 stores across North America. Initially producing only 50 chocolate bars a day, the company now manufactures more than 90,000 bars daily in its factory. With revenues exceeding $30 million, Midday Squares is on an ambitious path to reach $100 million, driven by a consistent year-over-year growth rate of about 50%. This strategic scaling of production and distribution highlights the effectiveness of their market entry approach and customer demand for their products.
Product Market Fit and Build-Out Strategy
Achieving product market fit has been crucial for Midday Squares, leading the founders to combine two rapidly growing categories: chocolate and plant proteins. They meticulously crafted a systematic approach to market expansion by focusing on local communities before attempting to penetrate larger markets. This method involved gaining traction in individual cities and regions, nurturing relationships with retailers, and leveraging early partnerships for substantial growth. Successful early partnerships with high-end retailers helped propel the brand into a wider market, paving the way for national distribution.
Authenticity Through Transparent Storytelling
Midday Squares has employed a strategy known as 'build out loud' to connect with consumers and investors, which involves sharing the journey of the business—both the successes and challenges. This approach has fostered a sense of community and brand loyalty, as consumers feel they are part of the growth story. The founders share their experiences on social media, allowing followers to witness the brand's evolution, challenges, and personal stories. This transparency not only builds rapport with customers but also attracts attention from retail buyers, giving the company a competitive edge.
Embracing Vulnerability and Mental Health
The founders emphasize the importance of mental health and vulnerability in the workplace, integrating therapy and personal well-being into their business culture. This focus on mental health creates a supportive environment, helping the team to manage the high-pressure demands of running a rapidly growing company. By openly discussing their struggles and growth, they not only foster team solidarity but also resonate with a broader audience, making their journey relatable. This authenticity has become a hallmark of the Midday Squares brand, attracting consumers who value connection and transparency.
Innovative Marketing Without Traditional Budgets
Despite achieving significant revenue growth, Midday Squares has largely avoided traditional marketing expenditures, relying instead on organic growth through community engagement and storytelling. Their marketing strategy prioritizes creating compelling content rather than direct selling, reflecting a shift towards a relational approach in consumer packaged goods. As they plan to expand their paid advertising efforts, they recognize that their existing approach to storytelling has already garnered significant attention. This unique strategy positions them well to continue their momentum as they invest more into marketing and product innovation.
Join JD (JonDavids.com) as he dives into an inspiring conversation with Jake Carls, co-founder of Mid-Day Squares. Discover how this innovative chocolate brand skyrocketed to $30 million in revenue with minimal marketing spend, resilience, and raw authenticity.
