Mid-Day Squares has secured $8 million in debt financing, and the Montreal snack company already has plenty of work for that money. Its U.S. expansion is moving ahead as Walmart and Costco give the brand access to a much larger group of shoppers.

The financing comes from Investissement Québec and Canada Economic Development for Quebec Regions. Mid-Day Squares plans to use the capital to expand manufacturing, increase output, and support growing orders from major American retailers. The refrigerated snack bars self-manufacturer believes it can now handle regular debt payments without selling another portion of the company and diluting its existing shareholders.

Founded in Montreal in 2017 by Lezlie Karls, Nick Saltarelli, and Jake Karls, the company has grown from a young refrigerated snack brand into a serious North American retail business.

Bigger Production Meets a Bigger U.S. Opportunity

Mid-Day Squares / IG / The company plans to expand its facility from roughly 16,000 square feet to about 35,000 square feet while adding more production capacity.

The existing plant can only take the relations so far. Mid-Day Squares estimates that its current setup can support roughly $65 million to $70 million in annual production, which leaves little breathing room if major retailers increase orders.

The expanded operation aims much higher. Mid-Day Squares says the new manufacturing setup could eventually support around $250 million in output, giving the company space to grow without immediately facing another production ceiling.

The company is also moving toward continuous production. Running the plant around the clock can increase output from existing equipment while a new production line provides another major jump in manufacturing capacity.

That extra capacity has become more urgent because the company's U.S. retail strategy is no longer sitting on a planning document. Mid-Day Squares has launched with Walmart USA, and its Costco USA rollout is now moving through hundreds of warehouses.

Walmart provides an important route into mainstream grocery shopping. The company initially tested the U.S. market through hundreds of Walmart locations, giving Mid-Day Squares a chance to learn how American shoppers respond before expanding its presence.

Costco could become an even bigger growth engine. Mid-Day Squares co-founder Jake Karls recently confirmed that the company's No Bread PB&J bars have launched in hundreds of Costco warehouses across the Northeast, Midwest, and Northwest regions.

Current warehouse tracking shows the 12-count No Bread PB&J Variety Pack across 179 U.S. Costco locations. The pack contains Strawberry and Grape bars and has recently carried a tracked warehouse price of $10.99, although local stock can vary.

No Bread PB&J Gives the Snack Manufacturer Growth Engine

Mid-Day Squares / IG / The product leading the Costco push is one of Mid-Day Squares' newest ideas. No Bread PB&J launched in January as the company's first major move away from its familiar chocolate-based refrigerated snack bars.

The concept keeps the peanut butter and jelly combination but removes the bread. Strawberry and Grape versions pair a fruit-based upper layer with a peanut butter base containing protein and fiber sources such as pea protein and Jerusalem artichoke fiber.

The product quickly became more than an experiment. Saltarelli has said No Bread PB&J represents almost 20% of the overall business, while other estimates have placed its contribution closer to one-quarter of company revenue.

Chocolate also became much more expensive to work with. Sharp increases in cocoa prices put pressure on Mid-Day Squares after the company had spent roughly six and a half years working its way toward profitability.

The cocoa squeeze made product diversification more valuable. A successful non-chocolate range reduces some exposure to cocoa costs while giving Mid-Day Squares another product family that can support growth inside major retailers.

Mid-Day Squares already sits close to that format. Its core chocolate products come in 35-gram servings and contain 6 grams of protein and 5 grams of fiber. The company sells flavors including Brownie Batter, Almond Crunch, Cookie Dough, Crunchy Peanut, and Peanut Butter. No Bread PB&J now extends that range without forcing the company to abandon the refrigerated format that helped define its brand.