Adam Rogers, the founder of the successful upscale beef-jerky business Krave, ventured into the marshmallow industry with Smashmallow after discovering next-level marshmallows in Paris. Rogers envisioned creating a premium snack by using healthier ingredients inspired by Parisian marshmallow flavors.
Founded in 2016, Smashmallow marshmallows were known for their varied flavors and pastel-shaded cubes. The company targeted a less guilty sweet indulgence, offering better-for-you marshmallows with fewer sugars than traditional candies.
Jens Hoj, a former chef at a renowned restaurant, was the brains behind the creation of Smashmallow’s better version of store-bought marshmallows. Using tapioca syrup and invert sugar instead of corn syrup and a higher cooking temperature, Hoj managed to give the Smashmallows more texture than the basic Kraft offering.
However, massive production of these artisanal-like products seemed to be a significant issue. Hoj struggled to find a copacker to produce the delicate, puffed-up marshmallows at scale, and Smashmallow resorted to doing everything by hand at a commercial bakery the company found in Los Angeles, thus driving up expenses.
Though Smashmallow’s marshmallows were well received by customers and had secured noteworthy retail partnerships, including Walmart and Target, rapid scaling to fulfill growing demand resulted in hurdles, much like classical entrepreneurial strategies in Silicon Valley, leading to the company’s downfall.
Eventually, Smashmallow’s marshmallows could not achieve the mainstream success that Rogers had initially envisioned due to issues in mass production. Despite early successes, the company fell out of favor, giving people a glimpse into the challenges of upgrading traditional food items to gourmet-level delicacies at a large scale.
Source: Inside Smashmallow, Silicon Valley’s Failed Marshmallow Startup}}.