Nancy Kalish, Rule Breaker Snacks

What’s the inspiration behind Rule Breaker Snacks?

I used to be a health journalist and certified health coach, and I know exactly what to eat to be healthy. But…I have a terrible sweet tooth. I spent a lot of money at the health food store trying to find delicious and satisfying treats that were also vegan, gluten free, and low in sugar. But they all tasted, well, too healthy, and I’d end up tossing them out. I refused to settle, and decided to try to create the perfect treat for myself. It wasn’t easy (I guess that’s why there are a lot of mediocre so-called healthy snacks out there). Home kitchen development But after about a year, I had developed an amazing, fudgy, vegan, gluten-free and allergen-free brownie that my family and friends loved and told me I should bring to market. I was tired of writing and wanted a new adventure. So I thought—and this is true—how hard could it be to start a food company? I’ll try it! Well, I’ve since learned that it’s plenty hard.  But I started Rule Breaker Snacks and haven’t looked back.

Simple question first— why chickpeas?

If I was going to create a healthy treat, I wanted it to be based on something that was actually healthy. Chickpeas were the perfect choice. They’re full of fiber, protein, vitamins and nutrients, and of course, they’re gluten-free. The downside: they are super tricky to work with. It took many tries before I was able to create a recipe where chickpeas are the first ingredient but they’re also invisible in terms of taste and texture. But I’m glad I kept at it. Once I cracked the bean code, it was easy to develop other products like our chocolate chunk blondies, birthday cake, pumpkin spice, and all sorts of other flavors. I’m proud that all Rule Breaker Snacks start with chickpeas—never sugar or a nutritionally empty flour.

Anyone can propose a certain kind of diet, but you have actual accreditation! What goes into health coach certification? 

Becoming a certified health coach through the Institute for Integrative Nutrition involved more than a year of study on all aspects of nutrition, as well as working with many clients one-on-one. Originally, I did it so I could become a better health reporter and ask better questions of the doctors I was interviewing and understand original medical studies. But I ended up learning the most from my individual clients and their dietary needs. As a result, I’m passionate about developing delicious products that really fit people’s needs and staying true to that.

How would you describe your experience on Shark Tank? Would you do anything differently if you could go back?

Shark Tank was an awesome experience and I wouldn’t change a thing. It is VERY hard to get on the show. I was one of only 130 entrepreneurs chosen from more than 20,000 applications. The application process involved writing multiple essays and making several videos, and took almost a year. When it came to actually filming the show, Covid made it an even more interesting experience! ABC created a pandemic bubble with the cast and crew and I had to quarantine alone in a hotel room for 10 days before filming—I was literally only allowed out of the room right before we filmed. But when I walked down that famous corridor and the doors swung open to reveal the Sharks, it was all worth it and so thrilling. I didn’t get a deal. But the viewers obviously didn’t care. We got an incredible boost online that continued for weeks and leveled off at a higher monthly revenue than before the show. Cookies require joy and intensity!After we filmed, we ended up getting an investment from Grupo Bimbo, the biggest baked goods company in the world. They understand our business better than any Shark could. So I’m very happy with the outcome.

What drove your decision to bootstrap RBS for your initial funding as opposed to raising in other ways?

I’m lucky enough to have had a very successful career before I started Rule Breaker, so I had the funds to get it off the ground. I believed—and still do—so passionately in the business that it wasn’t scary to take the risk. In addition, I have always focused on building the company’s valuation as much as possible before seeking outside funding.

What’s your experience been like as a female founder? Health food is seen as 'feminine' very often—has that had any effect on your experience?

It’s weird that being a woman in business is still a disadvantage. But it is, and I’ve never felt it more than when raising money. One potential big investor actually asked me if my husband does my finances (uh, no!). That’s one of the reasons I’m so happy to be raising on Republic, which levels the playing field.

How do you handle risk and competition?

Bring it on! I’m definitely a risk-taker by nature.  I think you have to be to achieve success as an entrepreneur. But there are risks, and then there are RISKS.  My team and I consider every move very, very carefully to make sure the risk is a worthwhile one.  Concerning competition, there’s always going to be some.  Rather than worrying about it, I face it and think hard about how to set ourselves apart and above.

What are the biggest challenges you’ve faced while launching your company?  

Once we started getting into retailers, our biggest challenge was our shelf life - which used to be only three weeks—and to achieve that, our products had to be delivered frozen and then defrosted on the store shelves. This prevented us from selling well on Amazon and online, and was an obstacle to growing in brick-and-mortar as well. All smiles at Expo West The big retailers told us, come back when you have at least 9 months of shelf life at room temperature.  That seemed like an impossibility!  But in 2017, we stepped up to the challenge. We thought outside the brownie pan and decided to reformulate from scratch. It took a year, but Rule Breaker is now shelf stable at room temperature (no more freezing) for 12 months—without preservatives. This has allowed us to get into Kroger, the biggest grocery chain in the country, and grow until we’re in almost all their stores as well as many other big chains. And our Amazon and online business is booming!

Have you learned anything new or surprising about yourself through this process?

The food business is tough and lots of things go wrong. If you let it get to you, you’ll make yourself crazy.  So I’ve learned to be very zen about it, take a deep breath, and find a solution. My motto is: Whatever it takes to survive—and thrive—another day. We always find a way to pivot, adjust, and innovate our way around obstacles. 

Why did you decide to raise from the crowd via Republic?

I’ve invested in lots of crowdfunding campaigns myself, so it was natural for me to want to do it as a brand. Funding is only part of it. I love the idea of building a bigger, committed community of folks that believe in our mission and want to help us bring it to the world. Republic does that in a way that we wouldn’t be able to do ourselves. 

What’s your team culture like? 

We really are a team. I wanted to create a culture of respect, where there’s never a stupid question and everyone feels comfortable sharing their thoughts and ideas.  As a result, we generate a lot of great ideas! 

A winning team

What is your superpower?

My superpower is that I always bounce back with passion. I look at problems and setbacks and see opportunities to make Rule Breaker run better, which gets me excited and makes the company stronger. I also really understand the better-for-you snack consumer and that push-pull between wanting to eat healthy and craving something sweet and delicious. That’s me!  So I know what they’re looking for and how to deliver it. 

What’s your kryptonite?

Having a lot of brownies in my office, and trying not to eat more than one a day.  It’s VERY tempting. 

Do you have any unusual routines or habits? 

My eyes pop open every morning at 5 without an alarm clock, which gives me some wonderful unrushed time to drink coffee, read the news, and ease into my day.  And I can still be at my desk by 7am.

Early rising and merch!

What do you like to do in your spare time? 

Every weekend, my husband Steve and I take our goldendoodle, Oscar, to Brooklyn’s Prospect Park to meet his doggy friends during the park’s off-leash hours. There are hundreds of dogs running free over a few acres, playing and leaping and chasing balls. Oscar loves it, and it’s pure joy for him and us. 

Are there any apps or gadgets that you can’t live without? 

My Instant Pot! It took me a while to get one. But now I use it several times a week to cook dinner. It’s especially great for cooking beans perfectly every time. I also love the weather app Dark Sky, which gives a super-detailed hourly weather forecast–great for timing dog walks between showers on a rainy day. 

If you could give yourself one piece of advice 5 years ago, what would it be?

Neon and Nexty AwardsBelieve in yourself and others will too. It’s the one thing you can’t be successful without. 

What’s the best piece of advice you’ve received?

Have the memory of a goldfish, which Ted Lasso tells one of his players on the show. I put that on a stickie note and stuck it on my computer where I see it every day.  I never dwell on what’s already happened.  I just move forward. 

Do you have a(ny) mentor(s)? If so, what have they taught you?

I consider everyone a potential mentor.  I’m constantly learning from each person I come into contact with.