Mid-Day Squares Secures $8M to Expand Plant-Based Snack Production
Canadian startup Mid-Day Squares has raised $8M in debt financing to scale up production of its high-protein, high-fibre vegan snack bars, including its No Bread PB&J line, ahead of expansion into major US retailers like Walmart and Costco. The company aims to reach $100M in annual sales by 2028-29.
Montreal-based Mid-Day Squares has secured $8M in debt funding led by Investissement Québec and Canada Economic Development for Québec Regions. The investment will help the company boost annual production to around $250M as it prepares to launch in Walmart and Costco stores across the US. The startup, founded in 2017, has raised a total of $25M since its inception.
## From Chocolate to PB&J: Expanding the Snacking Portfolio
Mid-Day Squares initially gained attention with its plant-protein-filled chocolate bars, offering flavours like brownie batter, almond crunch, and peanut butter. Each 35g serving provides 6g of protein and 5g of fibre, with no artificial ingredients or preservatives. However, the company faced challenges due to the volatile cocoa market, which nearly wiped out its gross margins in 2024.
To diversify, Mid-Day Squares introduced its No Bread PB&J bars in strawberry and grape flavours. These non-chocolate products now account for nearly 25% of its revenue, appealing to consumers with a lower price point and 130-calorie content. The company is installing a new V2 production line, expected to be operational by the end of February, to support this growth.
## Scaling Up Distribution and Revenue Goals
Mid-Day Squares is expanding its presence in the US, with plans to increase its footprint in Costco from around 10,500 to 13,000 stores. Walmart will initially launch four-packs of the snack bars at 350 higher-volume Tier A stores, while Costco will introduce the No Bread PB&J line in roughly 50% of its US locations. The company recorded $32M in revenue in the fiscal year ending May 2024 and expects to reach $45M this year.
With the cocoa market stabilizing, Mid-Day Squares anticipates lower production costs, which will improve its margins. The company also benefits from the growing demand for high-protein, high-fibre snacks, driven by the popularity of GLP-1 drugs. Mid-Day Squares aims to reach $100M in annual revenue by late 2028 or early 2029.
The startup chose debt financing over equity to avoid dilution and leverage favorable terms from Quebec government-backed programs. Co-founder Nick Saltarelli stated, "The business has matured to a point where we can handle the debt payments. We try to make decisions that are the most accretive to our investors, and this causes zero dilution."
Mid-Day Squares is part of a growing trend of plant-based protein bar startups attracting investment. In March, New York-based Mezcla secured $9.5M, while Turkey’s Eti Gıda acquired Miami-based Trubar for $173M earlier this year.
