Blab Business
Mid-Day Squares Secures $8 Million Debt Funding to Expand U.S. Retail Presence
Mid‑Day Squares, the Montreal‑based maker of refrigerated snack bars, has closed an $8 million debt deal that will help the company double its production footprint and break into U.S. wholesale channels.
The loan, led by provincial lender Investissement Québec and federal agency Canada Economic Development for Quebec Regions, will finance the expansion of the Montreal plant from roughly 16,000 square feet to 35,000 square feet and add a new production line. Co‑founder and co‑CEO Nick Saltarelli said the new capacity will enable the firm to support a $250 million annual production volume.
Saltarelli also noted that the company has already tested its bars in 300 Walmart stores across Canada and plans to begin selling in Costco on September 1. The new plant will allow Mid‑Day Squares to meet the projected demand from those large retailers.
The company attributes the rise in demand to the growing use of GLP‑1 receptor‑agonist drugs such as Ozempic and Wegovy, which suppress appetite and slow digestion. Consumers on these medications are seeking smaller, protein‑rich snacks that fit into a “white space” in the market. Mid‑Day Squares’ bars, typically under 40 grams, provide protein, fiber and satiation.
In January, the firm launched its first non‑chocolate product, a “No Bread PB&J” line available in strawberry and grape flavors. The bars feature a fruit‑based top layer that includes tapioca syrup, grapes or strawberries, fruit and vegetable concentrate, soluble tapioca fiber, Jerusalem artichoke fiber, water, blackcurrant, fruit pectin, okra powder and agar‑agar. The peanut‑butter bottom contains tapioca syrup, pea protein, Jerusalem artichoke fiber, fava bean protein, coconut oil and shea butter. Saltarelli said the new line now accounts for almost 20 percent of the company’s total business.
Investissement Québec is a provincial agency that supports economic development in Quebec through loans, guarantees and equity, while Canada Economic Development for Quebec Regions is a federal agency that provides financing and support to businesses that contribute to the regional economy. The combined debt financing reflects confidence in Mid‑Day Squares’ production model and its expansion into large U.S. retailers.
At present, the company is preparing to scale production to meet the projected demand from Walmart and Costco. The next milestone will be the first Costco shipments in early September, followed by a review of sales performance in the U.S. market. No additional funding rounds have been announced, and the company has not disclosed a timeline for a potential equity raise.
The debt financing and planned expansion underscore a broader trend of Canadian food manufacturers seeking growth in the United States while adapting product lines to changing consumer preferences driven by medical treatments. Mid‑Day Squares’ ability to increase capacity and enter major retail channels will be closely watched by investors and industry analysts as the company navigates the competitive snack‑bar landscape.
The loan, led by provincial lender Investissement Québec and federal agency Canada Economic Development for Quebec Regions, will finance the expansion of the Montreal plant from roughly 16,000 square feet to 35,000 square feet and add a new production line. Co‑founder and co‑CEO Nick Saltarelli said the new capacity will enable the firm to support a $250 million annual production volume.
Saltarelli also noted that the company has already tested its bars in 300 Walmart stores across Canada and plans to begin selling in Costco on September 1. The new plant will allow Mid‑Day Squares to meet the projected demand from those large retailers.
The company attributes the rise in demand to the growing use of GLP‑1 receptor‑agonist drugs such as Ozempic and Wegovy, which suppress appetite and slow digestion. Consumers on these medications are seeking smaller, protein‑rich snacks that fit into a “white space” in the market. Mid‑Day Squares’ bars, typically under 40 grams, provide protein, fiber and satiation.
In January, the firm launched its first non‑chocolate product, a “No Bread PB&J” line available in strawberry and grape flavors. The bars feature a fruit‑based top layer that includes tapioca syrup, grapes or strawberries, fruit and vegetable concentrate, soluble tapioca fiber, Jerusalem artichoke fiber, water, blackcurrant, fruit pectin, okra powder and agar‑agar. The peanut‑butter bottom contains tapioca syrup, pea protein, Jerusalem artichoke fiber, fava bean protein, coconut oil and shea butter. Saltarelli said the new line now accounts for almost 20 percent of the company’s total business.
Investissement Québec is a provincial agency that supports economic development in Quebec through loans, guarantees and equity, while Canada Economic Development for Quebec Regions is a federal agency that provides financing and support to businesses that contribute to the regional economy. The combined debt financing reflects confidence in Mid‑Day Squares’ production model and its expansion into large U.S. retailers.
At present, the company is preparing to scale production to meet the projected demand from Walmart and Costco. The next milestone will be the first Costco shipments in early September, followed by a review of sales performance in the U.S. market. No additional funding rounds have been announced, and the company has not disclosed a timeline for a potential equity raise.
The debt financing and planned expansion underscore a broader trend of Canadian food manufacturers seeking growth in the United States while adapting product lines to changing consumer preferences driven by medical treatments. Mid‑Day Squares’ ability to increase capacity and enter major retail channels will be closely watched by investors and industry analysts as the company navigates the competitive snack‑bar landscape.
