The founders of a chocolate startup turned down an acquisition from Hershey's and are using their Instagram reality show and $10 million in revenue to try for an IPO

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2021-05-30 20:00:06

As the founders of the chocolate snack brand Mid-Day Squares, they decided to promote their brand by creating their own programming: On their podcast, they talk about the dilemmas they've faced starting a business. They even film a reality series that they post on Instagram documenting every aspect of their lives running the fledgling brand.

But when the Hershey Co., one of the largest candy and snack companies in the world, came calling for an acquisition in March, Mid-Day Squares was not interested.

Many food startups sell to big players like Mondelez or General Mills "like clockwork" when they hit $100 million in sales, Saltarelli said. Mid-Day Squares plans to stay independent, opting instead to pursue an initial public offering.

"We have to see it all the way through," Saltarelli said. "The censorship that would be provided to us if we were absorbed by another company would kill the entire purpose of what we're trying to do."

Mid-Day Squares got its start in Canada in 2018, with the Karlses, who are siblings, and Saltarelli, who is married to Lezlie, selling their bars out of a condo kitchen. The brand has since raised about $8 million from investors including Boulder Food Group and Selva Ventures and is expanding into the US this year with a debut in June at Sprouts Farmers Market and a launch at Whole Foods later this year. It sells in about 1,800 stores, including Canadian grocery chains like Sobeys and Metro.