Pete Maldonado, co-founder of Chomps, explains his diligence criteria when selecting private equity partner Stride Consumer Partners.
Insight
Maldonado: Building a DTC community first drives downstream retail velocity
“That's also why we're so successful in retail is all of that foundation that we laid in the DTC world, building that community, building a loyal following, and it was just, you know, it's brick by brick, right? It's one person at a time.”
Assertion Not checkable as stated
Maldonado: Chomps launched at Trader Joe's selling 360 units weekly per store
“So like a good retailer would do, you know, like now, like you know, like a health food store, like a whole foods or whoever might do like 15, 20, 30 units per store per week. We came out of the gates doing 360 units per store per week of this product. That's …”
Disclosure
Maldonado: Chomps raised under $700,000 in primary capital before 2021 PE deal
“A total of less than 700,000. And over the course of like the two year period that we were, Working with them. ... So we, you know, even to this day, we've only, that's all the primary, primary capital's ever taken. Even aside from, we did a private equity rai…”
Assertion Partly supported
Maldonado: Chomps and Western Smokehouse are building a 300,000-square-foot joint facility
“And then we've stumbled on Kevin Western from Western Smokehouse, which is you know, one of, is our first co-packer, but now we've, we have, was it four plants now with them? And we're doing the big JV in Mexico, Missouri on a pretty massive plant, a 300,000 s…”
Assertion Not checkable as stated
Maldonado: Trader Joe's placed an initial order of 1.1 million Chomps sticks
“It was a 1.1 million sticks, I believe.”