In the competitive world of snack foods, one company has managed to carve out a unique niche, not just for its innovative products, but for its groundbreaking approach to fundraising and brand building. Mid-Day Squares, the brainchild of Nick and Lezlie Saltarelli, has taken the chocolate industry by storm, selling over one million bars in just 20 months and raising an impressive $21 million in funding. This Montreal-based company's journey offers valuable insights into modern entrepreneurship, innovative fundraising, and disruptive product development.
The Birth of a Chocolate Revolution
Identifying a Gap in the Market
In 2018, Nick and Lezlie Saltarelli spotted a significant opportunity in the chocolate market. They envisioned a product that wasn't just a treat, but a functional, protein-rich snack that could satisfy cravings while providing nutritional benefits. This vision led to the creation of Mid-Day Squares, a company that would soon redefine afternoon snacking.
The timing was perfect. According to a report by Grand View Research, the global functional foods market size was valued at $161.49 billion in 2018 and was expected to grow at a CAGR of 7.9% from 2019 to 2025. This trend indicated a growing consumer demand for foods that offer health benefits beyond basic nutrition.
From Kitchen Experiments to Production Line
Mid-Day Squares' journey began in the Saltarellis' condo kitchen. With an initial investment of just $20,000, they moved from concept to finished product. Nick Saltarelli recalls, "Twenty thousand dollars was our launchpad to get us from idea to finished product—not revenue, just a finished product we [could] bring to the market and actually start selling."
This humble beginning is reminiscent of other successful food startups like Graze, which began in the founder's kitchen and grew to be valued at £300 million in 2019. It demonstrates that with the right idea and execution, even modest beginnings can lead to significant success.
Building a Brand from the Ground Up
The DIY Manufacturing Approach
One of the most remarkable aspects of Mid-Day Squares' journey is their do-it-yourself approach to manufacturing. As Nick explains, "We [eventually] had to build a manufacturing plant. There was nobody that could do it [for us]." This decision to take control of their production process was a bold move, especially considering their lack of experience in the food industry.
This approach aligns with a growing trend in the food industry. A report by Food Dive indicates that 75% of food and beverage companies are increasing their investment in manufacturing capabilities to have more control over production and respond quickly to market demands.
Community-Centric Marketing Strategy
Mid-Day Squares adopted a unique, community-focused marketing strategy. Nick shares their approach: "We only told our story in Montreal, charged people only 50¢, and did the deliveries ourselves so we could speak to our customers." This direct interaction with consumers not only helped build a loyal customer base but also created organic brand ambassadors.
This strategy is reminiscent of the early days of Ben & Jerry's, which built its brand through community engagement and grassroots marketing. According to a case study by Harvard Business School, this approach was crucial in establishing Ben & Jerry's as a beloved brand with a loyal following.
Social Media as a Reality Show
In a stroke of marketing genius, Mid-Day Squares launched what Nick describes as "a reality television show through social media on Instagram showing people the good, bad, the ugly, kind of mixing Shark Tank, The Kardashians, and Elon Musk's built-in public strategy all into one." This transparent approach to business-building resonated with consumers and investors alike, creating a sense of investment in the company's success.
A study by Sprout Social found that 86% of Americans say transparency from businesses is more important than ever before. Mid-Day Squares' approach taps directly into this consumer desire for authenticity and transparency.
Innovative Fundraising Strategies
Building Momentum Through Strategic Milestones
Nick Saltarelli's approach to fundraising was methodical and strategic. He understood that to attract investors, they needed to hit specific "momentum triggers and markers." This meant not just creating a great product, but also demonstrating market viability and growth potential.
This approach aligns with advice from venture capitalists like Mark Suster, who emphasizes the importance of showing traction and momentum when seeking investment. In his blog, Suster states, "Investors are looking for companies that are not just promising but are already showing signs of success."
Leveraging Community Support for Investor Appeal
The company's community-centric approach played a crucial role in their fundraising efforts. By creating a loyal customer base that actively promoted their product, Mid-Day Squares was able to demonstrate real market demand to potential investors.
This strategy is supported by research from the Journal of Business Venturing, which found that startups with strong community engagement are more likely to secure funding and achieve long-term success.
Transparency as a Fundraising Tool
The social media reality show strategy wasn't just about marketing; it was also a powerful fundraising tool. By allowing potential investors to see the inner workings of the company, Mid-Day Squares built trust and excitement around their brand.
A study by PwC found that 87% of investors believe that transparency in business operations is crucial when making investment decisions. Mid-Day Squares' approach directly addresses this investor concern.
The Product That Started It All
Functional Chocolate: A New Category
At the heart of Mid-Day Squares' success is their innovative product. Their protein-rich chocolate bars, like the popular "Peanut Butta," are designed to stop hunger and cravings between meals. This functional approach to chocolate sets them apart in a crowded market.
According to Euromonitor International, the global market for functional foods is expected to reach $275 billion by 2025, indicating a growing consumer interest in foods that offer more than just taste.
Quality Control Through Vertical Integration
The company's commitment to quality is evident in their decision to build their own production facility. This allows them to maintain control over their product and continue innovating in response to customer feedback and market trends.
A report by McKinsey & Company suggests that vertical integration can lead to improved product quality and faster innovation cycles, both of which have been crucial to Mid-Day Squares' success.
Lessons for Aspiring Entrepreneurs
Think Differently and Innovate
Nick Saltarelli advises entrepreneurs "not to do what your peers are doing, and try to do something else. … [even if] it might be harder, or take you longer from an execution standpoint." This willingness to take the road less traveled has been a key factor in Mid-Day Squares' success.
This advice echoes the findings of a study published in the Strategic Management Journal, which found that companies pursuing unique strategies in their industry tend to outperform those following more conventional paths.
Embrace Radical Transparency
The company's open approach to sharing their journey has been a cornerstone of their success. By inviting customers and investors into their world, they've created a sense of shared ownership and excitement around their brand.
A survey by Label Insight found that 94% of consumers are likely to be loyal to a brand that offers complete transparency. Mid-Day Squares' approach capitalizes on this consumer preference.
Focus on Community Building
Mid-Day Squares' success demonstrates the power of building a strong community around your product. By focusing on direct customer interactions and local markets initially, they were able to create a solid foundation for growth.
This strategy aligns with the concept of "1,000 true fans" proposed by Kevin Kelly, which suggests that a creator or company can be successful by cultivating a small but deeply engaged audience.
The Future of Mid-Day Squares
Expanding Product Lines and Partnerships
As of 2025, Mid-Day Squares has continued to innovate, expanding their product line to include new flavors and formats. They've also explored partnerships with other health-focused brands to create collaborative products.
This expansion strategy is in line with industry trends. A report by Food Business News indicates that collaborations and product diversification are key strategies for growth in the competitive food industry.
International Expansion
Building on their success in North America, Mid-Day Squares has begun to explore international markets, bringing their functional chocolate to health-conscious consumers around the world.
According to Statista, the global chocolate market is expected to grow to $182.09 billion by 2025, presenting significant opportunities for expansion.
Commitment to Sustainability
In line with growing consumer demand for sustainable products, Mid-Day Squares has implemented eco-friendly packaging and sourcing practices, further enhancing their appeal to environmentally conscious consumers.
A Nielsen report found that 73% of global consumers say they would definitely or probably change their consumption habits to reduce their impact on the environment, indicating the importance of sustainability in consumer decision-making.
The Impact on the Snack Food Industry
Inspiring Industry-Wide Innovation
Mid-Day Squares' success has inspired a wave of innovation in the snack food industry, with more companies focusing on functional, health-oriented products.
A report by Innova Market Insights identified "Snacking: The Definitive Occasion" as a top trend, with a focus on nutritious, functional snacks that can replace traditional meals.
Changing Consumer Expectations
The transparency and community engagement demonstrated by Mid-Day Squares has raised the bar for how food companies interact with their consumers, leading to a shift in industry practices.
According to a study by the Food Marketing Institute, 75% of consumers say they'll switch to a brand that provides more in-depth product information, beyond what's on the physical label.
Conclusion: A Sweet Recipe for Success
The story of Mid-Day Squares is more than just a tale of chocolate bars; it's a masterclass in innovative fundraising, community building, and product development. By thinking outside the box, embracing transparency, and focusing on creating a product that truly meets consumer needs, Nick and Lezlie Saltarelli have not only built a successful company but have also changed the way we think about snack foods.
As we look to the future, Mid-Day Squares stands as a shining example of what's possible when passion, innovation, and strategic thinking come together. For entrepreneurs and food industry professionals alike, the lessons from this Montreal-based chocolate revolution are invaluable. In a world where consumers are increasingly health-conscious and socially aware, Mid-Day Squares has shown that there's always room for a sweet idea that hits the spot in more ways than one.
The company's journey from a condo kitchen to raising $21 million in funding is a testament to the power of innovative thinking, both in product development and business strategy. As the functional food market continues to grow and evolve, Mid-Day Squares is well-positioned to remain at the forefront, proving that with the right mix of ingredients – from chocolate to community engagement – success can indeed be sweet.
