Mid Day Squares

MDS x Innovatank Case

Mid-Day Squares - Moving forward to become a 100 Million Dollar Company.

Recently named Forbes 30 under 30 and reaching their 1 Million Dollars per month of sales milestone, Jake, Lez and Nick surpassed their expectations. It fires them up! However, this is just the beginning as they pursue the challenge of becoming the next chocolate company alongside giants like Hershey, Cadbury, and Nestlé.

About Mid Day Squares

Mid-Day Squares was founded in 2020 by Lezlie Karls, Nick Saltarelli, and Jake Karls. Lezlie is the company’s co-founder and CEO. The company currently has over 40 employees and is on track to generate $17 million in revenue this year and $36 million next year. Mid-Day Squares has recently raised $10 million in Series C funding, which puts them at an estimated $35 million pre-money valuation.

Recently, Mid-Day Squares has been in the news due to a lawsuit filed by Hershey. Hershey has accused the company of infringing on its trademark by using a name and logo that is too similar to Hershey’s famous “Reese’s Pieces” candy. Mid-Day Squares is facing a significant legal battle, as the company could be forced to pay damages if it is found guilty of trademark infringement.

Despite this lawsuit, Mid-Day Squares has continued to have success. The company recently was recognized by Forbes as one of their “30 Under 30” for its innovative approach to health and wellness. The company has gained considerable success in the past year, with its products being featured in many major publications, including Women’s Health and Shape Magazine.

Mid-Day Squares’ mission is to help people make better lifestyle choices and lead healthier more sustainable lives. Despite the lawsuit, the company remains committed to its core values and is determined to continue providing the highest quality products to its customers. The company’s success is a testament to the hard work and dedication of the founders and the entire Mid-Day Squares team.

Their Products

Mid-Day Squares is a health and wellness company that provides natural, organic, and sustainable products to its customers. Their goal is to help people make better lifestyle choices and lead healthier, more sustainable lives. They offer a range of nutritious snack bars, meal replacement bars, supplements, and health-focused beverages. All of their products are made with the highest-quality ingredients that are sourced from ethical suppliers and free from any harmful ingredients.

Mid-Day Squares was founded in 2020 by a group of health-conscious entrepreneurs. The company’s mission is to make healthy living accessible to everyone and to provide the most nutritious and delicious products that nature has to offer. Mid-Day Squares aims to help people reduce their reliance on processed foods, improve their overall health and wellness, and make better lifestyle choices.

To ensure the highest quality of their products, Mid-Day Squares carefully selects the ingredients used in their products. They use only natural, organic, and sustainable ingredients that are sourced from ethical suppliers. The company also makes sure that all of their products are free from any harmful ingredients, such as trans fat, artificial sweeteners, and preservatives.

Most of their products are also vegan, gluten-free, and dairy-free, making them suitable for customers with special dietary needs.

Their Competitors

Mid-Day Squares is a gourmet vegan and gluten-free chocolate company that produces chocolate snacks. The company’s primary competitors are large-scale chocolate and candy companies, such as Hershey’s, Mars, and Nestlé. These companies have significantly greater resources, including larger marketing and advertising budgets, production capabilities, and a significantly larger customer base.

In terms of revenue, Hershey’s reported sales of $7.1 billion in 2020, while Mars reported sales of $35 billion and Nestlé reported sales of $93.2 billion. Mid Day Squares, on the other hand, reported sales of $1.5 million in 2020, which is significantly lower than the industry leaders.

The primary target market for Mid-Day Squares are health-conscious consumers who are looking for products with natural ingredients. The company’s products are marketed as being high-quality and free from artificial ingredients. The company also focuses on sustainability and ethical production, which further sets it apart from its competitors.

In terms of market share, Mid-Day Squares holds a relatively small share of the overall chocolate and candy market. Its primary competitors, on the other hand, hold a significant portion of the market, with Hershey’s controlling an estimated 15.8%, Mars controlling an estimated 33.6%, and Nestlé controlling an estimated 22.1%.

Their Operations

Mid-Day Squares is currently available in over 4,000 retail stores across the United States, including major retailers like Walmart, Target, and Whole Foods. The company is on track to generate $17 million in revenue this year and is projected to more than double its revenue to $36 million next year. 

Mid-Day Squares come in four varieties: brownie batter, peanut butta, cookie dough, almond crunch. These products require refrigeration during transport, storage, and display, which creates logistical and operational hurdles for the company. Mid-Day Squares can be stored without refrigeration for up to five days. Refrigeration requirements can be difficult and costly to meet, particularly for smaller companies that do not have the resources and infrastructure of larger competitors.

Additionally, the company's products are perishable and must be consumed within a certain time period, further complicating the company's logistics. Mid-Day Squares has addressed these challenges by investing in refrigerated delivery options and working closely with distributors to ensure safe and timely delivery of their products to retailers and customers. The company is also investing in refrigerated storage and display solutions for retailers and works closely with them to ensure their products are stored properly.

Their Media outlets

Mid-Day Squares has a strong presence on social media, using platforms such as Instagram and Twitter to reach customers and promote their products. The company has over 13,000 followers across multiple platforms and has seen an increase in customer engagement due to its creative marketing campaigns.

The company has also used music videos as a form of marketing, including their recent video which takes aim at Hershey’s. In the video, Mid-Day Squares compares the nutritional value of its products with that of Hershey’s, highlighting their healthier ingredients and sustainable production practices. The video was a hit with customers and has helped the company reach new audiences.

Jake Karls is the co-founder and CEO of Mid-Day Squares, a Montreal-based company that is revolutionizing the afternoon snack market one chocolate square at a time. Jake has been recognized for his work in the food industry, winning numerous awards and accolades, including being named one of Canada’s Top 30 Under 30 by Forbes in 2019.

Their Investors

Mid-Day Squares has raised $10 million in Series C funding led by Siddhi Capital. Additional investors in the round included Boulder Food Group, Selva Ventures, Harlo Entertainment, Peter Burns, David Cynamon, Mike Fata, Bobby Saini, and other undisclosed investors. With this latest investment, the startup has a $35 million pre-money valuation.

Additional information from Jordanne - Chief of Staff at Mid-Day Squares 

As a business consultant, there are several key areas that need to be addressed in order for Mid-Day Squares to improve its operations and reach its full potential. The first issue to be tackled is the need to move from one to two shifts in the production line and to reduce inefficiencies. This requires careful consideration of the costs of time and labor, as well as the challenges of getting a second shift up to speed and working at full capacity. To mitigate the loss of profit during the training period, a plan must be put in place to balance the needs of growing retail orders with the demands of training a second shift. This may involve creative scheduling or temporary staffing solutions.

The second challenge for Mid-Day Squares is how to develop relationships with retailers through social media. While the company wants to stay true to its story and avoid being seen as too sales-focused, it is important to represent retailers and satisfy their desire to be featured on Mid-Day Squares' social media platforms. This requires a thoughtful approach that takes into account the expectations of the company's followers, while also providing value to retailers and building strong relationships with them.

The third issue to be addressed is the high turnover rate among employees. Due to the fast-paced nature of the startup environment, job responsibilities may change frequently, making it difficult to find the right employees who can work in multiple roles and handle fluctuating demands. To mitigate the loss of information when an employee leaves, it is important to implement standard operating procedures (SOPs) to document processes and ensure that knowledge is retained within the company. This will require a concerted effort to develop and maintain SOPs, as well as a commitment to ongoing training and development for employees.

Based on these three key issues, how can MDS grow in the long term?