Maxx Chewning’s $50K Gamble That Paid Off Big
Maxx Chewning’s journey with Sour Strips will be studied in business schools by entrepreneurial hopefuls one day.
The YouTuber started the brand in 2019 as a way to bring “sour candy that doesn’t suck” to sugar-crazed fans.
Fast forward to 2024, and he sold the business to American confectionery giant The Hershey Company for $75.5 million.
Chewning, who was originally coy about the exact figure, has since started to open up about the finances behind the deal.
His candor may have been prompted, in part, by Hershey revealing the “life-changing” sum paid in its annual report for that year’s takeover.
One detail we didn’t know, however, was Chewning’s original investment in Sour Strips.
That was until a recent Q&A held on his Instagram with fans.
One supporter asked: “How much of an initial investment was Sour Strips? Or if you don’t want to share, what percentage of your net worth did you risk to start it?”
To which Maxx Chewning replied: “I invested $50,000 to start the brand. Then made enough right decisions over the next 5 years to scale it without any additional money before selling it to Hershey.
“I owned 100% of Sour Strips when it sold.
“Cash flow management is the single most difficult thing to handle in a business scaling like we did. I actually continue to be mind blown when I look back and somehow did not screw that up.
“I had no financial employee, no CFO, no one helping me budget, nothing.”
Within the first hour of launch, Sour Strips sold 20,000 units, more than likely recouping the initial $50,000 outlay — and then some.
“I turned $50,000 into over $80 million in total revenue across 5 years by selling $3 bags of candy. WILD,” Chewning added.
“Every money decision while I was running the company was made based on my gut feeling. Probably stupid lol.”
As it turns out, Chewning’s gut instinct was entirely vindicated.
He grew a one-off $50,000 investment into $80 million in revenue before selling to one of the world’s largest candy companies for a similar figure.
It wasn’t quite a traditional exit, as Chewning still remains involved with Sour Strips, helping guide the brand’s direction while The Hershey Group works to establish it as a household name.
“When I sold the company, I actually chose to stay on,” Chewning said during an earlier vlog.
“Technically, I don’t have to. But I want to, because I want to be here first-hand, seeing the brand grow into what I know it can be.
“Now, it’s even better because we’ve got the power of Hershey behind us. Sour Strips was already blowing up, and now we can pour the Hershey rocket fuel on it.”
READ MORE: The Epic Story Behind Maxx Chewning’s Rolex
