S4 Ep26: Transparency and Authenticity is the New Currency with Jake Karls Part 2
“Transparency and authenticity is the new currency. If you don’t figure that out, you won’t be able to get the purchases because consumers today want to understand what the brand is about … They want to see the humans behind the brand.” — Jake Karls
Mid-Day Squares co-founder, Jake Karls is back for part 2!
We’ve heard about Jake’s story and how they came up with the world’s first-ever functional chocolate. This week, we will hear what Jake and Mid-Day Squares have been up to. Just a sneak peek, Jake and his team have received a big offer from a renowned chocolate conglomerate. How did they respond? What happened after? What is Mid-Day Squares’ latest endeavor? And what’s in it for you? If you’re excited to find out the answers, press play and join the conversation!
If you haven’t heard it yet, you can listen to Jake’s interview and everything about Mid-Day Squares Chocolate Bar For Health-Conscious Chocoholics here:
https://www.justinereichman.com/podcast-episodes/jake-karls
Connect with Jake:
Jake Karls is an actuary turned modern-day Willy Wonka. He co-founded Mid-Day Squares in 2018 along with his sister and brother-in-law. They manufacture the world’s first Functional Chocolate Bars: “Everything a chocolate bar isn’t, everything a protein bar wishes it was.” The social skills he acquired from running run a clothing brand (Chase & Hunter) became a strength for Mid-Day Squares, his role being the Chief Rover Officer and Resident Social-Personality. He makes a noise, builds relationships, and spreads love.
Episode Highlights:
01:26 What’s New with Jake?
04:50 Giving the Ownership to the Consumers
08:17 Transparency is the New Currency
10:50 Trust is the Key
Resources:
Podcast
Inspirational Quotes:
02:03 “So this 2022 is exciting for us to come in bold, go hard as hell, go in and win, and have fun with it.” -Jake Karls
06:05 “We want to engage our community. We want to allow our customers to be part of this from an ownership level.” -Jake Karls
07:14 “We want to build a company in a certain way. We believe you could do it by being unapologetically yourself every single day and not following the mold. I don't believe in conformity.” -Jake Karls
07:33 “Outlier decisions will allow us to have an outlier outcome.” -Jake Karls
08:01 “We're all about being transparent and open and sharing and working together.” -Justine Reichman
08:22 “Transparency and authenticity is the new currency. If you don't figure that out, you won't be able to get the purchases because consumers today want to understand what the brand is about … They want to see the humans behind the brand.” -Jake Karls
09:55 “Information evolves, humans evolve, and the world evolves, so brands need to evolve as well.” -Jake Karls
10:29 “When you're missing something, you don't feel like you have the whole truth. And when you don't have the whole truth, you don't create trust. It's a cycle.” -Justine Reichman
11:52 “Trust is the keyword. You lose the trust, the consumer is not coming back.” -Jake Karls
11:57 “By opening the door and being accessible and being transparent, you're creating trust.” -Justine Reichman
12:12 “You can't do the right thing for the wrong person or the wrong thing for the right person.” -Justine Reichman
Transcriptions:
Justine Reichman: Welcome to Essential Ingredients. I'm Justine Reichman, your host. Today with me and back at Essential Ingredients for our follow up is Jake Karls "Rainmaker", Co-Founder of Mid-Day Squares. Welcome back, Jake.
Jake Karls: Oh, hi. I love it. I always love coming back because that means that something's going right, and it means that there's something more interesting to talk about. So I always evaluate my podcasts if I come back or not later, whether it's a year, two years later, or months later, so I'm pumped.
Justine Reichman: Me too. We follow you, we watch your posts, we watch the news, we keep an eye out on what's going on, and I'm so excited to hear if you could just share with us some, maybe the top three things that have happened since the last time we chatted.
“So this 2022 is exciting for us to come in bold, go hard as hell, go in and win, and have fun with it.” -Jake Karls
Jake Karls: Well, so we definitely had tremendous growth in the United States. So where you are, the brand is actually exploding there from actually higher growth than in Canada, which is kind of cool. That's number one. Our team has grown tremendously in terms of individuals and skills. I think we're at 70, we're going to be at 70 by the first week of January, which is quite, that's a big family for us. And I think humans make a difference in a business. And without them, we don't have that business. That's that. Then third, I would say we're finally getting our groove in business. After three years of being in business, we finally met two partners, and I feel really good about what's to come, and how big this can be, and how much excitement we actually have. 2021 was a really rough year from just like structural foundational stuff, and just emotional drain of ups and downs. So this 2022 is really exciting for us to actually come in bold, go hard as hell, and just go in, win and have fun with it.
Justine Reichman: Wow, that's exciting. And so what do you see for 2022 as Mid-Day Squares expands? And for those that are tuning in for the first time and didn't hear your first interview, can you just give them a bite sized insight as to what Mid-Day Squares is?
Jake Karls: Yeah. So Mid-Day Squares is what we like to call the first functional chalk of our word, modern day chocolate company. And every product we make is functional, and it's an indulgent. So we use real chocolate, and we took a real chocolate bar, and we took a protein bar, we made love with the two. But we got rid of all the junk that's in protein bars. So the artificial flavors, the additives, preservatives, the chemicals, and most importantly, chalky taste, and we wanted to just redefine the way that we eat chocolate bars. No longer do we think that you should just have those candy bars, but you can actually have something that's also indulgent. But that carries you right through the afternoon, gives you natural boost of energy. And yeah, I like to say we're having fun with it. It calls the modern day Willy Wonka, if you like.
Justine Reichman: I like that. I do like them. So for 2022, what can we expect to see for you guys?
Jake Karls: Yeah, so 2022, you're going to see a lot more distribution in the United States. So we are focusing now on opening up more natural stores in the US. So focus on premium and natural stores first. Then in September 2022, we are opening up nationally across a massive retailer. I don't want to say the name yet, but it is where retail that everyone goes to. And we also reforming two of our products or reforming the ailment and the fudge to be even better than they currently are. So I'm super excited for the one that launches in the first quarter of 2022. And we're about to go on a journey where we're scaling from that, I would say startup to maturing company in the sense where our teams building, we're hiring a lot of executives, a lot of people that have been there done that type of thing, but with the magic that Mid-Day Squares mindset has. Something authentic to who we are staying true to our core values. And I think a lot of companies forget about that as they get bigger, and bigger, and bigger, and they just go through the biotic lab bureaucracy ladder. For us, we're really focused on building a massive family here making a difference in the way we want to make a difference is spreading positivity and good vibes. And it sounds cheesy, but that's who we are. And we dance, we laugh and go crazy, and make people feel something.
Justine Reichman: I love that. And I think it talks a lot to the core and the values that you have as an individual, but also the company has. So I have to ask, I've watched a lot of the videos that have come out, and I've read a lot of the press, and you guys have made a lot of really interesting choices to stay private. You've been approached by different people to make choices, not to take money. Can you talk to me a little bit about that? That was a hard decision, or was it really easy?
“We want to engage our community. We want to allow our customers to be part of this from an ownership level.” -Jake Karls
Jake Karls: For sure. So for us, we got approached in mid 21 to be acquired by a large chocolate conglomerate that we all know, a big American chocolate conglomerate and we actually rejected it. Three of us, our goal is not to sell the company. We feel like we could build this to be a modern day chocolate conglomerate, just a new way of doing it and building that impactful in size. And then a couple months later, we actually got seasons assists and letters legal from this team after rejecting them. For our packaging, they claimed we were infringing on the color that they own the color orange, and they had some other stuff. 32 pages of evidence of consumers saying our product is a healthier version of their product, which is actually just, it actually is, but it's not the same product. And then we had to rebrand our entire packaging. And it was a crazy journey to watch the video on Instagram or LinkedIn. We repackage our product in three weeks, which is quite crazy to actually do. And then for us, we did have to do a financial raise recently, but that's just for growth, equity, that's not to sell the company. And for us, our goal is potentially to IPO one day, I don't know if no blog says that. But yeah, we want to take potentially public one day because we want to really engage our community, we want to allow our customers, our fans to be part of this from an ownership level. And there's no better way to do it. And I think that that's something that we're trying to gun for, and we're trying to really get to. But there's a lot of noise out there in the food space, a lot of acquisitions, a lot of mergers, a lot of financing, a lot of capital injections, and we just block it out. We literally just block everything out.
Justine Reichman: Good for you, because it really allows you to stay true to who you are. Are you currently looking to raise money?
“We want to build a company in a certain way. We believe you could do it by being unapologetically yourself every single day and not following the mold. I don't believe in conformity.” -Jake Karls
Jake Karls: So we just signed a term sheet last week. So we're in due diligence right now, super great fund, super great humans behind it, they are based in the US, they're super amazing. They believe in manufacturing, they believe in building this to be the next Hershey's. And for us, we couldn't ask for a better partner in that sense. And I think a lot of time in the venture world, you find people that want a quick buck or partners that want to get in and out. And you then change the way that you start focusing on your model and your business for us. We've made it very clear to any partner that joins us that our mission is our mission, and we're staying put to it, we're staying true. Doesn't mean we're not going to optimize and make things efficient and all this stuff, but the magic comes from the three of us. My partners and I want to build a company a certain way, and we really believe you could do it by being unapologetically yourself every single day and not following the mold. I don't believe in conformity. Whenever we're on the side of the majority, Justine, I think that we always stop and reflect because we don't want to be on the side. We actually go the opposite side because those outlier decisions will allow us to have an outlier outcome.
“Outlier decisions will allow us to have an outlier outcome.” -Jake Karls
Justine Reichman: I think that's great advice for other founders listening and other people building businesses, because it's really a unique and new way of looking at building a business in today's world. I think for so long, people were trying to hold everything very close to the vest, and not about transparency, but about keeping their ideas very, very close to themselves because somebody else would redo it. And in today's world, we're really all about being transparent, and open, and sharing, and working together. So I love what you're doing. I love what you're building. I'm excited to continue to watch what you do, and be a platform for you to share more as you grow.
“Transparency and authenticity is the new currency. If you don't figure that out, you won't be able to get the purchases because consumers today want to understand what the brand is about … They want to see the humans behind the brand.” -Jake Karls
Jake Karls: Well, we appreciate you even letting us share, I think you nailed it. I think transparency and authenticity is the new currency. So if you don't figure that out, you won't be able to get the purchases because consumers today want to understand the brand, about the wonders, then the humans, they want to see the humans behind the brand. They want to know more. They don't just want to care about the product in itself, even though I think it's super important that you have a great tasting product. And that's number one. But number two is really to create an emotional connection with your consumers, make them fans, make them want to cheer you and root for you to win. Because when you do that, that's when you build real brand equity that's worth it, it's priceless. Because these big brands, these big bureaucracy companies, they can't do it, they can't figure out how to be authentic and transparent because the ladder doesn't allow them to do it. The bureaucracy is very hard. The red tape has judgment.
“We're all about being transparent and open and sharing and working together.” -Justine Reichman
And I think that for us, I swear on cameras, we're on television, it's not a negativity, it's just passion that's coming out of my mouth. And I'm not scared of it because it's who I am. I think more businesses need to start being themselves. And if it doesn't work out because of that, if that's why I fail because of being me, I'd be proud to be honest. Because again, and then it wasn't for me to continue doing it. And I think more businesses and individuals need to start doing that. I'm starting to see on LinkedIn, Instagram, a lot more people trying to be authentic and it's actually refreshing. It really like a breath of fresh air because everyone was just originated, like you said before, a facade. It was always like perfection, or facade, or this, or that. It was like we need to change that. I'm no like revolutionary person, but information evolves, and humans evolve, the world evolve, so brands need to evolve as well. And I'm excited for the next 5, 10 years of how brands in the food and beverage space specifically change their ways or they don't change their ways. I'm curious.
“When you're missing something, you don't feel like you have the whole truth. And when you don't have the whole truth, you don't create trust. It's a cycle.” -Justine Reichman
Justine Reichman: I couldn't agree more. And I do think that, I mean, even I remember 10 years ago, and 15 years ago where everybody was really trying to happen the story, and you create sort of a facade that doesn't really breed trust and authenticity, because you don't feel like you're, you feel like you're always missing something. And when you're missing something, you don't feel like you have the whole truth. And when you don't have the whole truth, you don't create trust. So it's a cycle. It's a cycle. And so by being honest, and showing transparency, or being transparent, there's a lot more that we can trust.
Jake Karls: And relate to.
“Trust is the keyword. You lose the trust, the consumer is not coming back.” -Jake Karls
Justine Reichman: Exactly. And so by doing that, you create rapport, you create a relationship, and you can have a relationship to the company, to the person, to the product, and you believe. And also it allows us by understanding that to be able to really understand what the product is, and what it isn't. And so I think that's revolutionizing what we're building as a food system as well. Because people for the first time in a long time are actually starting to understand a little bit more about the food system, what they're building, how it's impacting themselves, their health, the environment, and what we're building for our children, the future. And so I think it allows us to really have an open conversation about that. So I think it's just new, I hate to use the word paradigm, but it is. It's a new paradigm that we're entering. And I think that the way that you're doing it is just really open and accessible for so many. And I hope that many people will follow suit.
“By opening the door and being accessible and being transparent, you're creating trust.” -Justine Reichman
Jake Karls: Trust. Trust is the key word. You lose the trust, the consumer is not coming back.
Justine Reichman: So by opening the door and being accessible and transparent, you're creating trust.
Jake Karls: Exactly. And yeah, I think that's the answer. And any brand that's listening or any individual, just be authentic and be yourself because people like that, someone will love it.
Justine Reichman: Yeah, you can't do the right thing for the wrong person, or the wrong thing for the right person.
Jake Karls: I like that.
Justine Reichman: Jake, thank you so much. Thank you for joining us for giving us the update. How can everybody get a hold of your product, what's the best place?
“You can't do the right thing for the wrong person or the wrong thing for the right person.” -Justine Reichman
Jake Karls: You can go to our website, middaysquares.com. And if you want to find the store locators, you could check the Store Locator page to find the store. It's always located in the fridge of the store, which is important. And if you want to buy an Amazon or a website, we do need to see as well right to your door. But either way, we're happy for you even just to check us out and join our community, join our rollercoaster ride of our story. We'd like that.
Justine Reichman: Awesome. Thanks again, Jake. I hope you'll join us again, keep us posted on what's new at Mid-Day Squares and follow your journey, and follow our journey. We'll follow your journey each week.
Jake Karls: I love your support, and I appreciate you even taking the chance to allow me to speak so it means a lot.
Justine Reichman: Likewise, thank you so much for joining us. And I want to thank our listeners and everyone for tuning in today to catch up here with Jake to see what's happening at Mid-Day Squares. Thank you.
