Daniel Schwarz has a simple goal for his young food company, CHUZA — to be the most loved spicy snack.
As an entrepreneur, he knows it’s not going to be easy. But, he’s betting on people like himself who crave spicy flavors and authenticity in their food.
His dried fruit snacks smothered in chili seasoning are nothing new. Schwarz grew up eating those flavors in Mexico. The difference is now he’s plucking a piece of his heritage, putting it in sleek colorful packages and getting it on U.S. store shelves like Ralphs and Whole Foods.
“We’re very proud Mexicans living in the U.S., so we are proud of being Mexican but also very grateful to be here,” Schwarz said.
Schwarz’s personal love of spicy snacks traces back to his childhood in Monterrey, Mexico. He recalls running off the dirt soccer field with his friends to the nearby food cart. They’d get tostadas layered with chili flavors.
He founded CHUZA in January 2020 and named it after the Spanish exclamation for hitting a strike in bowling.
“When you hit a ‘chuza’ you did something amazing,” he said.
CHUZA offers dried fruit, such as mangoes, strawberries and nopal (cactus pads) covered in authentic Mexican spices. The local brand sells its chili seasoning and six varieties of dried fruit for $5 to $8 per bag.
The spices are sourced directly from a Mexican manufacturer that has been doing it for three generations, Schwarz said. CHUZA’s packaging also boasts 100 percent Mexican spices and no artificial flavors or colors.
While the snacks might be packed with heat, Schwarz said it’s something his three young kids eat every day — including his one-year-old.
He moved to San Diego, his wife’s hometown, during the first week of the COVID-19 lockdowns in March 2020. To get CHUZA off the ground, Schwarz invested his own savings and then received help from friends and family.
Daniel Schwarz, founder of CHUZA, grew the snack company during the coronavirus pandemic to share the spicy flavors he grew up eating in Mexico.
(Courtesy of CHUZA)
Prior to starting CHUZA, he worked at a large U.S. corporation and founded a food startup in Mexico. However, working in the consumer packaged foods sector was new to him, so Schwarz relied on his entrepreneurial persistence and corporate experience to see the big picture with CHUZA.
“Sometimes when we are doing a startup, you’re very into the details of the day-to-day survival,” he said.
Schwarz is still the only full-time employee, but he’s hoping that will change soon as the business expands thanks to a $100,000 grant and support from PepsiCo’s 2023 Greenhouse Accelerator.
CHUZA won the first-ever Juntos Crecemos (Together We Grow) iteration of the accelerator, which focuses on up-and-coming Hispanic businesses across the food and beverage industry.
It wasn’t a straightforward pitch contest to claim the first prize. It was the culmination of a six-month mentorship program with PepsiCo alongside nine other food startups. The program gave finalists a $20,000 grant and personal mentorship from experts in areas such as branding and go-to-market strategy.
The judges said that CHUZA was chosen as the winner for its expansion to more than 500 retail locations throughout the program.
“CHUZA’s focus and commitment to elevating the snack segment, demonstrated throughout the entire process, inspires us to maintain that same entrepreneurial mindset at PepsiCo as we develop food and beverage solutions that deliver on flavor, function, health, convenience and sustainability,” said Antonio Escalona, senior vice president and general manager of Hispanic Business Unit, PepsiCo Foods North America.
One of CHUZA’s goals was to successfully launch its product in 7/11 convenience stores, which the PepsiCo specialists helped them tackle. Schwarz said you can also find their spicy snack online and at Whole Foods, Ralphs, Stater Bros., Bristol Farms, Seaside Market and Artelexia.
Additionally, CHUZA is now available in Florida and the company recently won the California Grocers Association pitch contest, which has opened the door for its expansion into Northern California.
Part of the brand’s growth plans include using the PepsiCo grant money to increase brand awareness through in-store demonstrations and partnerships with social media influencers.
