Masa: The Rise Of The Blue-Chip Tortilla Chip

Key Concepts

• Seed Oils: Industrial vegetable oils (e.g., canola, soybean) often criticized in wellness circles for potential inflammatory properties.
• Grass-Fed Beef Tallow: Rendered beef fat used as a traditional, shelf-stable frying medium, favored by the founders for its nutritional profile compared to seed oils.
• Masa: The nixtamalized corn dough used to make traditional tortilla chips.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of operational profitability.
• Vertical Integration: The strategy of owning the manufacturing process (building their own plant) rather than outsourcing to third-party co-packers.

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1. Origin and Product Philosophy

The company Ancient Crunch (makers of Masa Chips) was founded by Meta engineer Steven Rofrano and private equity professional Seth Goldstein. The concept emerged in 2022 from a desire to create a "blue chip" tortilla chip that avoided "seed oil pesticide slop."

• The Product: A tortilla chip made with no additives or pesticides, fried in grass-fed and finished beef tallow, and seasoned with sea salt.
• Core Philosophy: CEO Steven Rofrano states, "We're not trying to make healthy alternative versions of your favorite snacks. We're just making the best version of your favorite snacks." The founders argue their product is more authentic to the original historical recipe of the tortilla chip than mass-produced alternatives like Tostitos.

2. Business Growth and Scaling

• Initial Launch: After experimenting in a backyard turkey fryer, the duo invested $8,000 of their own savings into industrial equipment. Their first batch in July 2022 sold out in one day.
• Retail Expansion: Following a successful launch at the upscale health food chain Erewhon, the brand gained traction as a status symbol among wellness-focused consumers and influencers.
• Manufacturing Hurdles: The company faced 200 rejections from third-party manufacturers who were unwilling to switch from cheap vegetable oils to beef tallow. Consequently, the founders invested $250,000 of their own savings to build a proprietary manufacturing facility in New Jersey.
• Market Presence: As of 2024, the product is in 2,500 stores, with upcoming launches at Target (California) and nationwide at Whole Foods.

3. Financial Performance and Economics

• Revenue: Ancient Crunch is currently generating an estimated $50 million in annual revenue, selling 500,000 bags per month.
• Pricing Strategy: A bag retails for $13 online and up to $18 in stores—two to three times the price of standard competitors.
• Cost Structure: The company is currently unprofitable due to high operational costs. They spend over $100,000 monthly on grass-fed beef tallow alone.
• Profitability Goals: The company aims for EBITDA margins of 10% to 20% as they scale.
• Valuation: Forbes estimates a potential acquisition value of $200 million, based on industry benchmarks like PepsiCo’s $1.2 billion acquisition of Siete (which traded at roughly 4x revenue).

4. Notable Quotes

• Steven Rofrano on ingredient quality: "Many people would consider our prices to be relatively expensive, and yet people have no idea how expensive it is to make this stuff. The difference is certainly ingredient quality. Our ingredients are orders of magnitude better."
• Rofrano on the "seed oil" issue: "It was shocking to me to find one of my friends eating the seed oil pesticide slop."

5. Synthesis and Conclusion

Ancient Crunch has successfully positioned itself as a premium, "status" snack brand by targeting the intersection of the wellness movement and high-end food culture. By rejecting the industry-standard manufacturing model (seed oils and outsourcing) in favor of vertical integration (proprietary beef tallow production), they have created a defensible, albeit expensive, product. The company’s trajectory—from a backyard experiment to a $50 million revenue business—highlights the growing consumer demand for "clean label" snacks, even at a significant price premium. The ultimate success of the business will depend on its ability to maintain these high margins while scaling production to meet nationwide retail demand.