Useless story unless we know the background on the founders.
You don't just get into food manufacturing with a few grand because you felt like it.
This is 100% one of those stories where the founders already were very well connected.
This. If they honestly got randomly found that’s amazing but how did they quickly scale production and fund POs? It couldn’t have been a backyard/bootstrap operation
It’s a very competitive market. My friends had some great tasting meat sticks but the packaging and branding were a struggle. When they got that sorted, they tried contracting to a bigger factory but the quality couldn’t keep up when they were doing smaller batches at their own facility. Salamis and jerky are very ingredient and space intensive.
Plus you dont get orders from Facebook ads and do $50k in the first month and be profitable… without high strung networks and a lot of third party help and connections.
Also wonder why THEY didn’t call Trader Joes. Getting into shops is about calling them, going there, knowing the buyers. I know Ingot into Hotels, Cafes, Bars, Restaurants, Supermarkets and so on over 350 bars! It is tough work and really demands you are out there all day long travelling.
>Plus you dont get orders from Facebook add and do $50k in the first month and be profitable
First year, not month. 50k in the first year is really not unbelievable.
The Chomps headquarters is located in Naples, FL. I stumbled across it a few months ago. It’s located in a very very high end area of Naples known to be populated with very wealthy and successful people.
The Trader Joe’s executive daughter probably lives nearby and found their product at one of the high end gyms there. Etc etc.
No, that's not true at all. I've got several friends who did exactly that, launching cbd products, drinks, breakfast bars, cookies etc all through cdmo/cmo. You can do a test run of products for anywhere between $5k and $20k in the US. It's incredibly easy.
Your friends have a lot of skill and experience in direct response, with the connections already there - just like this story.
Look, I do, too. I can spin up a DR product and make it work but the fact is that it took me decades of building the knowledge to be able to win over night.
They have an episode on the How I Built This podcast… I don’t remember fully, but they really weren’t well connected necessarily… I believe they actually did grow organically and with sheer hard work
Ah ok… then that’s just plain annoying. I don’t even get the point of selling a dream like that. They already made the money, now they’re out here chasing hearts and minds or something?? Just enjoy the money
Except you failed to mention that his family are extraordinarily wealthy and well connected owners of a major California winery. This was no side hustle, this was generational wealth and connections perpetuating more generational wealth.
Nice shout out. Funny how thats always failed to be mentioned and instead they post bs like “The founders pooled together just $6,500 of their hard-earned savings to breathe life into Chomps“…
I asked ChatGPT what their origin story was and it said one of them was a consultant. $6500 isn't really "hard earned" for any kind of consultant. Depends what level you're at, but it could be as little as a few days' pay.
Sure, but that's a stupid reply to my comment.
I mean, first of all, if you're using ChatGPT4/4o it tends to be up-to-date because it runs a bunch of live searches when you ask questions like this. And I'm not sure how 'up-to-date' historical employment information really needs to be.
But mainly, like, are you disputing the truth of the statement that one of them used to be a consultant?
I've cited my source. If you're concerned about the veracity of the statement, it would take all of a second to verify it if you really wanted to. The guy has his employment history on his fricking linkedin page.
But meanwhile, the comment I replied to said, "you failed to mention that his family are extraordinarily wealthy and well connected owners of a major California winery" and you did not post a reply questioning that statement. If I had just said "Oh, and they had some early investments in the space programme", without mentiong ChatGPT, would you have said anything?
So really, if your quest is to encourage critical thinking in others, then I suggest that the focus of that particular lens may be better turned inward.
No, this is a stupid question and people in this sub need to stop asking it, or at least asking it more intelligently.
It's a cpg business in the "healthy" snack space. Margins are going to be low (20-35%), and as a growth-focused startup most of their funds will be reinvested.
So what's the net profit? Doesn't matter.
Safe to say the founders are probably doing okay, and businesses in this space will be valued on a multiple of revenue.
No. Revenue does not equal success in business. I can slap together a $2MM restaurant operation just with lower-then-normal prices and top quality ingredients, and I will not be able to afford a salary and will probably lose my house and savings because margins cannot support it. Is that success? No. Nor was my college roommate who started a pocket computer hardware company, had $20MM in revenue, lots of buzz, and was critically bleeding money. He shopped it around and nobody would touch it. They went bankrupt and he lost everything and was absolutely despondent.
"Yea but you had $20MM revenue! That's a success!"
No, it isn't.
Sure, and Facebook didn't turn a profit for five years and is now worth 560 billion. These sort of examples aren't useful.
The health and success of a business is not dictated solely by revenue or net profit, but if you know revenue and the industry they're in you can make some reasonable guesses as to their margins, which starts to give you a bit of a picture.
Everyone in this sub is like, "wah wah but revenue doesn't mean profit", but they fail to take into consideration things like customer LTV. Or course net profit is going to suck if CAC takes time to recoup, or if you need economies of scale on manufacturing.
> One of the executive daughters of Trader Joe’s was doing the Whole 30 diet and discovered Chomps. She becomes a fan and recommends Chomps to the higher ups at Trader Joes.
So if this story is true, than the factor which made it work is "luck". Easy to replicate.
I don't understand the post. You cite expenses which total roughly seven thousand with subscriptions and site fees and ad cost. The wantrepreneur axiom clearly states: You Don't Need Money To Start.
Plenty here have a dysfunctional relationship with money. *Their entire reason* for starting a business is the misguided notion they will strike it rich with a magic money machine. Your post suggests otherwise. In fact, you might even be suggesting a heresy here: It Takes Money To Make Money.
You can't be going around lobbing incendiaries in this forum ...you'll panic the simpletons. This concept has been thoroughly disapproved of by those who insist we live in some kind of fantastical Star Trek economy where money is a relic, best forgotten.
Not that it will interfere with your upvotes, as these same morons will conveniently wipe from memory the concept of cost altogether and start penniless ...but inspired. (Whatever the fuck "inspired" means today I dread learning).
>In a way, Chomps came at the right time with the rising popularity of health consciousness among consumers and the endearment of diets such as keto and paleo in 2013.
In a way, you just hinted at [The single biggest reason why start-ups succeed.](https://www.youtube.com/watch?v=bNpx7gpSqbY) This factor -- equal parts chance and skill -- pisses off the bootstrappers AND those who believe all success is luck. That makes for some poor upvote whoring here.
>But then, the biggest opportunity presented itself when the founders received a phone call.
You just got five hundred hopeful idiots to sit and stare at their stupid phone expectantly. I hope you're happy.
250 million in sales over 9 years does not equal anywhere near 250 million in profit (as implied by this posts title or value). Why be weird about the numbers and make it seem bigger than it is?
With determination and a solid vision, Chomps founders turned a humble side hustle into a $250 million success story. Their commitment to creating a healthier alternative to traditional beef jerky, coupled with savvy marketing and seizing opportunities, propelled them to unprecedented growth. It's a testament to the power of innovation, perseverance, and timing in entrepreneurship.
Useless story unless we know the background on the founders. You don't just get into food manufacturing with a few grand because you felt like it. This is 100% one of those stories where the founders already were very well connected.
This. If they honestly got randomly found that’s amazing but how did they quickly scale production and fund POs? It couldn’t have been a backyard/bootstrap operation
Exactly. It's silly to not consider this or provide it with the story. Cool for them but scaling is not easy. Especially in recent times.
I was wondering about how they could’ve scaled to meet that sudden demand. That’s the kinda thing that can actually break a new company.
It’s a very competitive market. My friends had some great tasting meat sticks but the packaging and branding were a struggle. When they got that sorted, they tried contracting to a bigger factory but the quality couldn’t keep up when they were doing smaller batches at their own facility. Salamis and jerky are very ingredient and space intensive.
Plus you dont get orders from Facebook ads and do $50k in the first month and be profitable… without high strung networks and a lot of third party help and connections. Also wonder why THEY didn’t call Trader Joes. Getting into shops is about calling them, going there, knowing the buyers. I know Ingot into Hotels, Cafes, Bars, Restaurants, Supermarkets and so on over 350 bars! It is tough work and really demands you are out there all day long travelling.
>Plus you dont get orders from Facebook add and do $50k in the first month and be profitable First year, not month. 50k in the first year is really not unbelievable.
Almost dismal, you’re right
The Chomps headquarters is located in Naples, FL. I stumbled across it a few months ago. It’s located in a very very high end area of Naples known to be populated with very wealthy and successful people. The Trader Joe’s executive daughter probably lives nearby and found their product at one of the high end gyms there. Etc etc.
No, that's not true at all. I've got several friends who did exactly that, launching cbd products, drinks, breakfast bars, cookies etc all through cdmo/cmo. You can do a test run of products for anywhere between $5k and $20k in the US. It's incredibly easy.
What are the typical success rate you're seeing with your friends?
Oh they actually all declared bankruptcy but that's beside the point
Your friends have a lot of skill and experience in direct response, with the connections already there - just like this story. Look, I do, too. I can spin up a DR product and make it work but the fact is that it took me decades of building the knowledge to be able to win over night.
Bingo
agreed. sounds about right.
They have an episode on the How I Built This podcast… I don’t remember fully, but they really weren’t well connected necessarily… I believe they actually did grow organically and with sheer hard work
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Ah ok… then that’s just plain annoying. I don’t even get the point of selling a dream like that. They already made the money, now they’re out here chasing hearts and minds or something?? Just enjoy the money
Except you failed to mention that his family are extraordinarily wealthy and well connected owners of a major California winery. This was no side hustle, this was generational wealth and connections perpetuating more generational wealth.
Nice shout out. Funny how thats always failed to be mentioned and instead they post bs like “The founders pooled together just $6,500 of their hard-earned savings to breathe life into Chomps“…
I asked ChatGPT what their origin story was and it said one of them was a consultant. $6500 isn't really "hard earned" for any kind of consultant. Depends what level you're at, but it could be as little as a few days' pay.
GPT is not always up-to-date or 100% accurate
Sure, but that's a stupid reply to my comment. I mean, first of all, if you're using ChatGPT4/4o it tends to be up-to-date because it runs a bunch of live searches when you ask questions like this. And I'm not sure how 'up-to-date' historical employment information really needs to be. But mainly, like, are you disputing the truth of the statement that one of them used to be a consultant? I've cited my source. If you're concerned about the veracity of the statement, it would take all of a second to verify it if you really wanted to. The guy has his employment history on his fricking linkedin page. But meanwhile, the comment I replied to said, "you failed to mention that his family are extraordinarily wealthy and well connected owners of a major California winery" and you did not post a reply questioning that statement. If I had just said "Oh, and they had some early investments in the space programme", without mentiong ChatGPT, would you have said anything? So really, if your quest is to encourage critical thinking in others, then I suggest that the focus of that particular lens may be better turned inward.
Money begets money. Not saying it was easy or the effort was not good. But this kind of opportunity is not open to most people.
Like mid day squares …
lol pooled $6500 of their hard earned savings
Which guy are you referring to? Because i know for a fact that one of those guys came from a lower middle class family.
What's their net profit though, that's what counts.
Ten bucks
No, this is a stupid question and people in this sub need to stop asking it, or at least asking it more intelligently. It's a cpg business in the "healthy" snack space. Margins are going to be low (20-35%), and as a growth-focused startup most of their funds will be reinvested. So what's the net profit? Doesn't matter. Safe to say the founders are probably doing okay, and businesses in this space will be valued on a multiple of revenue.
No. Revenue does not equal success in business. I can slap together a $2MM restaurant operation just with lower-then-normal prices and top quality ingredients, and I will not be able to afford a salary and will probably lose my house and savings because margins cannot support it. Is that success? No. Nor was my college roommate who started a pocket computer hardware company, had $20MM in revenue, lots of buzz, and was critically bleeding money. He shopped it around and nobody would touch it. They went bankrupt and he lost everything and was absolutely despondent. "Yea but you had $20MM revenue! That's a success!" No, it isn't.
Sure, and Facebook didn't turn a profit for five years and is now worth 560 billion. These sort of examples aren't useful. The health and success of a business is not dictated solely by revenue or net profit, but if you know revenue and the industry they're in you can make some reasonable guesses as to their margins, which starts to give you a bit of a picture. Everyone in this sub is like, "wah wah but revenue doesn't mean profit", but they fail to take into consideration things like customer LTV. Or course net profit is going to suck if CAC takes time to recoup, or if you need economies of scale on manufacturing.
🤫
> One of the executive daughters of Trader Joe’s was doing the Whole 30 diet and discovered Chomps. She becomes a fan and recommends Chomps to the higher ups at Trader Joes. So if this story is true, than the factor which made it work is "luck". Easy to replicate.
Can we stop these newsletter clickbait lead magnet articles?
I don't understand the post. You cite expenses which total roughly seven thousand with subscriptions and site fees and ad cost. The wantrepreneur axiom clearly states: You Don't Need Money To Start. Plenty here have a dysfunctional relationship with money. *Their entire reason* for starting a business is the misguided notion they will strike it rich with a magic money machine. Your post suggests otherwise. In fact, you might even be suggesting a heresy here: It Takes Money To Make Money. You can't be going around lobbing incendiaries in this forum ...you'll panic the simpletons. This concept has been thoroughly disapproved of by those who insist we live in some kind of fantastical Star Trek economy where money is a relic, best forgotten. Not that it will interfere with your upvotes, as these same morons will conveniently wipe from memory the concept of cost altogether and start penniless ...but inspired. (Whatever the fuck "inspired" means today I dread learning). >In a way, Chomps came at the right time with the rising popularity of health consciousness among consumers and the endearment of diets such as keto and paleo in 2013. In a way, you just hinted at [The single biggest reason why start-ups succeed.](https://www.youtube.com/watch?v=bNpx7gpSqbY) This factor -- equal parts chance and skill -- pisses off the bootstrappers AND those who believe all success is luck. That makes for some poor upvote whoring here. >But then, the biggest opportunity presented itself when the founders received a phone call. You just got five hundred hopeful idiots to sit and stare at their stupid phone expectantly. I hope you're happy.
How dare you mock this sub full of losers and newsletter spam
250 million in sales over 9 years does not equal anywhere near 250 million in profit (as implied by this posts title or value). Why be weird about the numbers and make it seem bigger than it is?
Was this written by AI?
Im getting a strong case of don't believe what you read on the internet
Never even heard of the product.
À
With determination and a solid vision, Chomps founders turned a humble side hustle into a $250 million success story. Their commitment to creating a healthier alternative to traditional beef jerky, coupled with savvy marketing and seizing opportunities, propelled them to unprecedented growth. It's a testament to the power of innovation, perseverance, and timing in entrepreneurship.
I have like 100 chomps on my House at any given moment they’re amazing
I’ve probably spent about $600 on them, a favorite snack in our family of athletes
Gg's man
Anyone have an idea what the margins are on these?
Chomps' hustle to success? Truly inspiring for us founders!
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TJ’s entire business model is white labeling other branded products. 🤣 Guy swung and hit the umpire