A Healthy Revolution in the Meat Snack Industry – Chomps
In 2012, Pete Maldonado and Rashid Ali decided to take on a challenge that puzzled many people. They wanted to sell healthy meat snacks. Despite scepticism, their passion and belief in the idea led to the birth of Chomps, a company that has since revolutionized the meat snacks category. Today, Chomps is a thriving business known for its commitment to health, sustainability, and transparency, proving that you can turn a simple idea into a multi-million-dollar brand.
Childhood Love Sparks an Idea
Pete’s journey with meat snacks began when he was a child. He used to ride his bike to the local convenience store, buy meat sticks, and finish them before reaching home. As a certified personal trainer by age 19, Pete realized those beloved snacks were full of unhealthy ingredients like sugars and preservatives. This made him think: why isn’t anyone making a healthier version of these snacks?
This simple question sparked what would become Chomps—a brand dedicated to creating a better-for-you meat snack using grass-fed beef with no added sugar or artificial ingredients.
The Problem with Conventional Meat Snacks
By 2012, the global meat snacks market was booming, valued at $17 billion in 2023, with projections to reach $26 billion by 2030. Despite the market’s size, Pete and Rashid were concerned about the low-quality ingredients commonly found in products. Most meat snacks were filled with unhealthy additives, which motivated them to create an alternative—one that was natural, healthy, and delicious.
Chomps’ Humble Beginnings
With just $6,500 of their savings, Pete and Rashid set out to create their brand. The early days were filled with learning curves—they had to teach themselves how to build a website, develop packaging, and run Facebook ads. The original packaging was simple and even had cowhide print—a far cry from the sleek, modern design you see today.
They started small, selling directly to consumers (D2C) online, at CrossFit gyms, independent stores, and even doctor’s offices. Their pricing began at around $2 per stick and has since risen to around $2.49 as they expanded their operations.
The Big Break: Partnering with Trader Joe’s
Chomps saw steady growth in its early years, with annual revenue doubling year over year. However, 2016 marked a pivotal moment when Trader Joe’s agreed to carry their products. This partnership introduced Chomps to millions of new customers, driving the brand’s visibility and sales. That same year, Pete left his full-time job to focus solely on the business, followed by Rashid in 2018.
The deal with Trader Joe’s turned Chomps from a small e-commerce venture into a national brand. By 2016, Chomps’ revenue shot up from $450,000 to $4.3 million, a tenfold increase.
What Makes Chomps Different?
From day one, Pete and Rashid set out to make Chomps unique. They wanted a product that was free from sugar, made with grass-fed and grass-finished beef, and had no artificial ingredients. Sourcing the proper beef was critical, and they found the ideal supplier in Tasmania, Australia. The region’s geography allows for grass-fed cattle year-round, ensuring high-quality ethically sourced meat.
This focus on ethical sourcing goes beyond just creating a healthier product. Chomps has always prioritized sustainability and animal welfare in its supply chain. They ensure their products are suitable for their customers and environmentally responsible.
Bootstrapping to $244 Million
Chomps’ growth over the years has been extraordinary. From an initial $6,500 investment, the company has grown into a $244 million retail business in 2023. In 2021, after nearly a decade of bootstrapping the business, Pete and Rashid secured their first round of external funding: an $80 million minority investment from Stride Consumer Partners.
By 2023, Chomps had sold over 350 million sticks, and they estimate that in 2024 alone, they are on track to sell 300 million more.
A Brand for Everyone
One of Chomps’ key insights has been recognizing that their products aren’t just for people looking for a healthier jerky alternative. The Chomps consumer often wants a high-protein, low-sugar, convenient snack that fits their busy lifestyle. Whether they follow a paleo, keto, or CrossFit regimen or enjoy a snack they can trust, Chomps has become a go-to option.
Learning from Chomps’ Success
Chomp’s story is an excellent example of how you can turn a passion into a successful business with determination, focus on quality, and adaptability. Here are some key lessons anyone can learn from Chomps:
- Start Small, Think Big: Pete and Rashid started with just $6,500 and built their business slowly, focusing on creating the best product possible.
- Adapt to Change: When Chomps began, they planned to ship frozen meat nationwide. However, they quickly pivoted to shelf-stable meat sticks, better suited their customers’ needs. This flexibility allowed them to scale.
- Focus on Quality: Chomps’ success is built on its commitment to using high-quality, ethically sourced ingredients. This focus differentiated them from competitors and resonated with consumers who are more conscious of what they eat.
- Leverage Strategic Partnerships: Their deal with Trader Joe’s opened up massive retail opportunities and put the brand on the national stage. Partnering with the right companies can provide exposure and scale that would be difficult to achieve alone.
- Stay True to Your Values: Chomps’ focus on health, sustainability, and transparency has remained the same from day one. This consistency has helped them build trust with their customers.
How to Learn More and Apply These Lessons
Chomps’ journey can inspire aspiring entrepreneurs or anyone interested in food and wellness. You can follow their story and learn from their successes by checking out business case studies, listening to interviews with Pete Maldonado and Rashid Ali, or exploring startup podcasts highlighting the company’s journey. Entrepreneurs can also see Chomps as an example of how to bootstrap a business, scale a side hustle, and secure investment when right.
For those interested in starting their own business, Chomps offers a real-world example of how staying committed to a mission—health, sustainability, or customer needs—can lead to long-term success.
A Bright Future Ahead
Chomps has had an incredible journey, from selling directly to customers in their early days to being featured in major retailers like Trader Joe’s and growing into a $244 million brand. Pete and Rashid’s unwavering dedication to quality and ethics has set them apart in a crowded market. As they continue to grow, Chomps is on track to sell millions more sticks, solidifying its place as a leader in the healthy snacks industry.
Chomps’ success proves that with a strong vision, the right partnerships, and a dedication to quality, it’s possible to turn a simple idea into a major business success.
