This is about Nick Saltarelli, founder of Mid-Day Squares chocolate bars. He says the biggest opportunity in packaged food is hidden beneath a crowded surface—most brands use co-packers (outside factories), so products taste the same. Companies that build their own factories can create a real moat (hard-to-copy advantage). He highlights his own company: Mid-Day Squares, costs dropped from $1.40 to $0.18 per bar, targeting $100M revenue in 3 years. He warns about Hershey's relying on Reese's and outsourcing production, and regrets that RX Bar's founder sold too early.
This report discusses the entrepreneurial journey and core insights of Nick Saltarelli, co-founder of Mid-Day Squares, regarding the functional chocolate bar brand. Key conclusions include: the company set a revenue target of $100 million to maintain a balance between long-term thinking and short-te
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Nick Saltarelli is the co-founder of Mid-Day Squares, a functional chocolate bar brand. The core thesis of this interview is: how to build a brand with long-term competitiveness in a seemingly saturated CPG market dominated by giants, by making a series of unconventional, non-average decisions. The most significant judgment in the entire episode is: Nick Saltarelli believes that the biggest opportunity in the CPG industry lies precisely beneath the surface where the "low-hanging fruit" has already been picked — because the industry's over-reliance on co-packers has led to severe product commoditization, allowing any company willing to go deep into the supply chain and create truly differentiated products to build a strong moat.
Nick Saltarelli believes that to achieve non-average results, one must make non-average decisions, especially in the CPG industry, which means actively choosing the opposite direction from the "herd."
Nick Saltarelli believes the biggest problem in the CPG industry is product commoditization, rooted in the misaligned incentives between co-packers and brand owners, which stifles innovation. Building an in-house factory is the fundamental solution.
Mid-Day Squares' marketing strategy completely overturns the traditional CPG model. They view themselves as a "90s music band," creating "reality show" style content to build emotional connections rather than running traditional advertisements.
Nick Saltarelli integrates the philosophy of "plan as if you'll live forever, live as if you'll die today" into entrepreneurship, emphasizing that a long-term vision guides short-term decisions, while pragmatic "one step at a time" action is the only path to achieving grand goals.
| Position | Analyst Stance | Key Data |
|---|---|---|
| Mid-Day Squares | Bullish (Founder's Perspective) | Target $100M revenue (within 3 years); Manufacturing cost reduced from $1.40/bar to $0.18-0.19/bar; Raw material costs down 40%; Raised $10M |
| Hershey's | Risk Warning (as a comparison) | Majority of revenue comes from one brand, Reese's; No longer manufactures its own chocolate, outsources to Barry Callebaut |
| RX Bar | Neutral (with regret) | Nick believes founder Peter Rahal could have built a much larger company and sold too early |
| Saputo | Bullish (as a role model) | Market cap ~$13.5B; World's second-largest dairy group |
| Paysafe | Bullish (as a role model) | Founded by Rory Olson; World's third-largest payment wallet |
| Airborne Entertainment | Bullish (as a role model) | Founded by Rory Olson; Exited in 2.5 years for ~$100M ($95M+) |
1. "You cannot get a non-average output from average inputs." — Nick Saltarelli. This is the meta-law guiding all decisions at Mid-Day Squares. To achieve extraordinary results, one must make extraordinary, unconventional decisions.
2. "The biggest problem in the CPG industry is product commoditization, rooted in the incentive structure of co-packers." — Nick Saltarelli. Co-packers prioritize maximum efficiency, forcing brand owners to use standardized ingredients and stifling innovation. Building an in-house factory is the only way to create differentiated products.
3. "Our marketing strategy is the 'band model'; we aren't selling chocolate, we are selling stories and emotional connections." — Nick Saltarelli. The company views itself as a 90s music band, building a fan community by creating "reality show" style content, rather than running traditional ads.
4. "The company's first official employee was a videographer, not a salesperson." — Nick Saltarelli. This underscores the company's extreme emphasis on content marketing, believing that great content automatically attracts customers and channels.
5. "Plan as if you'll live forever, live as if you'll die today." — Nick Saltarelli. This is the balancing philosophy he learned from his father's early death. Plan grandly for the long term, but cherish each day, live in the moment, and act efficiently.
6. "Always be fundraising, even if you don't have a business yet." — Nick Saltarelli. He learned from his mentor Rory Olson to build relationships with potential investors early, not just when you need the money.
7. "Don't sell global manufacturing rights; look at the lessons from Coca-Cola and RX Bar." — Nick Saltarelli. He believes manufacturing capability is the core moat and must be firmly controlled. Selling rights leads to misaligned incentives and can ultimately result in losing control of the brand and market.
8. "When you have a problem, ask your fans, don't call your supplier." — Nick Saltarelli. Mid-Day Squares successfully solved a coconut sugar shortage through social media, proving that the power of community far exceeds traditional supply chain relationships.