How ‘Chomps’ Grew To $244 Million Per Year
Founded in 2012 by Pete Maldonado and Rashid Ali, Chomps began as a humble side hustle with a mission to create a healthier, tastier meat snack. Today, it generates revenues of over $244 million a year.
Product Inspiration
Pete Maldonado's journey to founding Chomps began with a childhood love for meat sticks. As a child, he rode his bike to the local 7-Eleven, indulging in the savory snacks.
However, as he grew older and became a certified personal trainer, he realized that these snacks were loaded with sugar, preservatives and unhealthy additives. Together with his friend Rashid, they noticed a gap in the market for a cleaner, more nutritional alternative.
In 2012, with just $6,500 of their own money, they launched their first production run of Chomps.
Overcoming Challenges and Finding A Niche
Their initial challenge was to develop a product that tasted great and met the founders’ high nutritional standards. They partnered with a co-manufacturer to perfect their first recipe, which featured grass-fed and grass-finished beef with no added sugar—an innovation in a market dominated by products loaded with unhealthy ingredients.
The early days of Chomps were marked by rapid iterations and a significant pivot. Originally, the founders planned to ship frozen meat across the country, but they soon realised that a shelf-stable, portable snack would better meet market needs. As the popularity of diets like CrossFit, paleo, and keto surged, Chomps found its niche as a convenient, protein-packed option that catered perfectly to these health-conscious communities.
Scaling Up
In its first full year of business, Chomps generated around $40,000 to $50,000 in sales. By 2014, that number had doubled to $100,000, and the growth continued at an impressive pace. The company's big break came in 2016 when Trader Joe's began stocking Chomps products, a move that dramatically increased the brand's visibility and customer base.
However, scaling up presented its own set of challenges. Rapid growth stretched the company’s existing infrastructure, forcing Pete and Rashid to rethink their operations. Balancing the demands of a growing business while maintaining their day jobs, the founders made the decision to commit fully to Chomps. Pete went full-time in 2016, followed by Rashid in 2018. The pair opened an office in Chicago and began building a team, learning the importance of delegation and company culture along the way.
Quality and Ethical Sourcing
Chomps prides itself on ethical sourcing practices, focusing on nutrition, environmental sustainability, and animal welfare. To ensure a reliable year-round supply of high-quality beef, Pete and Rashid turned to Tasmania. The unique geography of this region provided the ideal conditions for raising grass-fed cattle, though the distance posed challenges to the supply chain.
Staying true to their values has been vital to Chomps' success. From its inception, the company has aimed to make a positive impact not only on consumers’ health but also on the broader environment. This commitment has resonated with customers, further solidifying the brand's reputation as a leader in the healthy snack industry.
Investment
After nearly a decade of bootstrapping, Chomps took a significant step in 2021 by securing its first round of funding—an $80 million minority investment from Stride Consumer Partners. This infusion of capital allowed Chomps to expand its reach even further, and by 2023, the company had achieved nearly $250 million in retail sales.
Future Plans
With more than 350 million sticks sold from 2012 to 2023, and projections to sell 300 million more in 2024, Chomps shows no signs of slowing down. As Chomps looks to the future, the founders remain deeply committed to their mission. The business, which started as a side hustle, has transformed into a movement aimed at revolutionizing the snacking industry.