CHOMPS: From Steak to Stick

Chomps is a clean-label meat snack brand known for its 100% grass-fed beef sticks and commitment to using simple, high-quality ingredients. Founded in 2012 by Pete Maldonado and Rashid Ali, the company has grown from a small, self-funded startup to a nationally recognized brand, reaching over $200 million in revenue and a 4469% 3-year growth rate while remaining independently owned. Unlike traditional meat snacks filled with preservatives and additives, Chomps built its reputation by offering minimally processed, protein-rich snacks that align with paleo, keto, and Whole30 diets.

Before starting Chomps, Pete Maldonado was a personal trainer passionate about health and fitness. His work in the fitness industry exposed him to a common frustration—finding on-the-go protein snacks that weren’t loaded with sugar or artificial ingredients. Convenience store meat sticks were a popular snack, but their ingredient lists were far from ideal. This realization led Maldonado to consider making a healthier version of the snack he had grown up eating.

At the same time, Rashid Ali, who had experience in business operations, was intrigued by the idea of building a company from the ground up. The two friends recognized a gap in the market for clean-label, high-protein snacks, and after some brainstorming, they decided to launch their own meat stick brand with just $6,500.

Their initial concept was different from what Chomps became. Originally, they considered selling frozen, grass-fed beef directly to consumers, but the challenges of shipping frozen meat quickly became apparent. To simplify logistics and make the product more accessible, they pivoted to shelf-stable, individually wrapped meat sticks—a move that would define the future of Chomps and the meat snack category itself.

Unlike many food startups that rely on venture capital funding, Chomps was completely bootstrapped from day one. The founders used their own savings to fund the first production run, meaning every dollar had to be spent wisely. This approach forced them to be lean and efficient, ensuring that the company remained profitable from the start rather than burning cash on unnecessary expenses.

One advantage of bootstrapping was that it kept the company focused on sales and sustainability rather than relying on investor money to cover losses. While many startups scale quickly with outside funding but struggle with long-term profitability, Chomps prioritized organic growth. By reinvesting early profits back into the business, they gradually built a self-sustaining operation without sacrificing control.

The meat snack industry is crowded, with established brands dominating store shelves. Chomps had to differentiate itself early on, and the key to its success was a strong, clear brand identity. Instead of competing directly with conventional beef jerky or protein bars, Chomps positioned itself as a clean-label alternative to traditional gas station meat sticks. This strategy helped the brand gain traction with not just health-conscious consumers, particularly those following Whole30, paleo, and keto diets but with those simply looking for quick protein.

Another crucial decision was to maintain brand independence. When approached by major retailers interested in carrying Chomps under private label branding, the founders declined, knowing that building a recognizable brand was more valuable in the long run. This move allowed them to create a strong identity that resonated with consumers, rather than becoming just another generic product on store shelves.

In its early years, Chomps focused on direct-to-consumer (DTC) sales, leveraging its website and e-commerce platforms to establish early revenue and customer loyalty. This approach allowed the company to validate demand before attempting a large-scale retail expansion. The turning point came in 2016, when Trader Joe’s expressed interest in carrying Chomps products nationwide.

This opportunity presented both a major breakthrough and a significant challenge. The initial purchase order from Trader Joe’s exceeded one million meat sticks, a volume far beyond anything Chomps had previously produced. At the time, the company lacked the capital and infrastructure to fulfill such a large request on its own. To finance production, the founders raised funds through personal loans from friends and family, ensuring they could meet the demand. Successfully fulfilling this order provided a key lesson in scaling operations under pressure, a challenge that many startups face when transitioning from small-scale production to large retail commitments.

After the successful launch in Trader Joe’s, Chomps quickly expanded into other major grocery chains. By 2018, the brand had secured partnerships with Whole Foods, Walmart, and other national retailers, rapidly increasing its presence in both health-focused and mainstream supermarkets. Revenue growth followed this retail expansion, and by 2021, Chomps surpassed $100 million in annual sales.

Over the next two years, the company continued to expand its retail footprint, reaching over 18,000 store locations by 2023 and from 2016 to 2019 Chomps had a stunning 4,469% three-year growth rate, landing Chomps at No. 62 on the 2019 Inc. 5000 list of America’s fastest-growing private companies. This rapid growth solidified Chomps as a lead player in the meat snack category, demonstrating the potential for independent and bootstrapped businesses to scale without relying on outside investors. The experience of fulfilling the Trader Joe’s order exemplifies a key challenge many founders face—scaling quickly to meet demand while navigating financial and operational constraints. By balancing strategic expansion with operational discipline, Chomps successfully transitioned from an e-commerce startup to a nationally recognized brand.