Discover how Chomps meat sticks became a snack sensation

Rashid Ali and Pete Maldonado, co-founders of Chomps, were unlikely business partners. 

Ali was rising through the ranks of large consultancies in Chicago. Maldonado was a personal trainer. Both were craving a simple snack, full of flavor and protein. That’s how the idea for Chomps meat sticks was born. Founded in 2012 by Ali and Maldonado, it was the answer to a simple question: How can we create a high-quality protein snack that’s nutritious and delicious? 

Today, Chomps meat sticks — which contain 10-12 grams of protein, 0 grams total sugar, and real ingredients — can be found in big-box retailers across the country. It’s also America’s fastest-growing snack brand. But this meaty success didn’t happen overnight. “Chomps was well ahead of where consumer snacking was shifting,” said Chomps president and COO, Elizabeth Carter. “We say it was a 13-year, overnight success.”

Bite-size success leads to a chomping achievement

Working out of their Chicago apartments, Ali and Maldonado started the company with a basic partnership agreement. From the beginning of their journey, they established a plan for growth and stuck to it. Straying far from the original mission of providing a great tasting, better-for-you snack wasn’t an option. Discipline — from the workout warriors, moms, and families who consume Chomps regularly, to its founders and leaders who are focused on what the company does best — defines everything about Chomps.

“There’s been so much intentionality with the brand over the years,” said Chomps CFO Tim Bosslet. “We were direct to consumer for several years, so once we started to accelerate our retail distribution, we already had a captive consumer base ready to give us a try.” Carter shared that after a significant order from one of the country’s largest grocers in 2016, Chomps took off. “We were producing, distributing, and selling more sticks faster than ever, and our growth was exponential,” she said.

But with growth comes challenges. Scaling can be a major strain on an organization’s finances and overall health. Other companies have come and gone because they reached for a few extra percentage points of growth, or because they gave up too much equity too soon. In other words, they bit off more than they could chew.

But Chomps took its time and remained vigilant. “It is tough, because we’re all curious what the performance would be if we just went for it,” said Carter. “But we know there are barriers with capacity and other constraints. Prudence and intentionality with our product mix – these things help us stay focused.” Added Bosslet: “We were a bootstrapped business that’s always thrived with our core customers. Our growth could’ve absolutely been more explosive, but Rashid (Ali) and Pete (Maldonado), from the beginning, instilled a financial discipline and methodical approach that still permeates today.”

Beefing up business with Wells Fargo

In looking for a partner to help with its rapid, disciplined growth, Chomps executives heard about Wells Fargo through industry contacts. Enter Wells Fargo’s Chicago-based Commercial Banking team including Market Sales Executive Brett Rausch and Relationship Manager John O’Shea. “Another customer gave us a warm referral, but we were frankly a little late to the party as Chomps had already started looking for a new bank to work with,” said O’Shea.

In just a few weeks’ time (the process typically takes much longer), Rausch, O’Shea, and others from the Commercial Banking team put together a fully customized and comprehensive package for Chomps. “They were attracted to our ability to bring the full range of capabilities Wells Fargo has to offer,” O’Shea said. “The collaboration between our Commercial Banking relationship managers and product specialists — asset-based lending and equipment financing in this case — allowed us to quickly provide the right solution to meet Chomps’ needs,” he added.

Rapid growth like Chomps has experienced often doesn’t happen in a straight line. There are tweaks and pivots happening in near real time. It’s why Chomps’ leaders wanted a bank that could be nimble, but also patient.

“It’s proven out to be a strong relationship,” Bosslet said. “Wells Fargo understands the growth journey we’ve been on, and we know Wells Fargo can provide support where it’s needed. Wells Fargo can support us with needed capital, but also as we grow, the bank can support our business finance needs. The insights, relationships, and other places where support is additive is just another positive.”

With new products hitting the market and distribution continuing to expand across the country, Chomps believes continued growth is in its future. “There’s so much opportunity in front of us as a brand, and this can bring momentum for several years,” Bosslet said. “Though, there’s an element of continued discipline that must be kept. We must have the same, high-quality meat sticks we’ve been known for, we have to maintain an exceptional consumer experience – every time, and we have to keep meeting consumers where they are, across new and old channels.”