If you’re someone living with the one-two punch of Type 2 diabetes and an intense sweet tooth, snacking can be downright frustrating. Prowling store shelves, it is often a formidable challenge to find a treat that offers both low sugar and good taste.

ChipMonk Baking is a company that originated out of the founders’ desire to help snackers facing that dual struggle. The producer is helping T2 folks satisfy their cravings with its line of keto- and diabetic-friendly cookies, brownies, and other tempting items. To find out more about the company’s mission and growth, we connected with David Downing, co-founder and CEO.

Jenni Spinner: Could you please share the ‘elevator presentation’ of ChipMonk Baking—including the types of products you offer, and what sets you apart from others working in the BFY baked snack space?

David Downing: ChipMonk is a Houston-based bakery specializing in gluten-free and low-carb baking. We manage our own brand and contract manufacture for other emerging brands and local businesses. With expertise in unique ingredients like allulose, monk fruit, gluten-free flour, and plant-based extracts, we offer consultation for brands entering the better-for-you baked snack market. We enjoy collaborating with entrepreneurs, providing support in commercializing and scaling their products based on our experience in brand building.

JS: Could you please tell me how the inspiration for founding ChipMonk Baking came to you?

DD: Jose Hernandez and I launched our business in 2019 from our apartment kitchen. Jose, diagnosed with Type 2 diabetes in his early twenties, struggled to find foods not packed with sugar or processed carbohydrates. Desserts posed the biggest challenge. While living together, he created ChipMonk's first sugar-free cookie recipe, free from artificial ingredients. Recognizing its potential, we began selling at farmers' markets and officially launched the business.

JS: Please tell us about some of the struggles a person faces when diagnosed with T2D—feel free to talk about everything diet-related, as well as other stuff around the new lifestyle one has to live.

DD: Type 2 Diabetes develops gradually due to long-term dietary habits, making it challenging to adapt to sudden dietary changes. Sugar, pervasive in the American diet, poses a significant hurdle. Many seemingly "healthy" foods are laden with sugar and processed carbs. Managing diabetes or adopting a healthier diet requires thorough nutrition label reading and self-education, which can be overwhelming amidst busy lifestyles. We created ChipMonk Baking to provide a trustworthy brand offering convenient snacks and desserts aligned with a healthier lifestyle.

JS: How did ChipMonk morph from an idea for a product line to reality to retail? Please talk about some of the obstacles the ChipMonk team faced in taking the company from idea to reality, including commercialization.

DD: Our journey began in our apartment, where we crafted Jose's first recipe and sold cookies locally. Transitioning to online and wholesale required finding a commercial kitchen, mastering food safety, and refining our recipe for scalability and market readiness. Guidance from a food scientist at the University of Houston was instrumental in perfecting our recipe and navigating commercial bakery operations. Through hands-on experience, we honed our skills and efficiency by producing hundreds of thousands of cookies. As sales grew, we attracted investors and established our own commercial bakery in Houston to maintain quality control and flexibility. This allowed us to expand into e-commerce and retail, now stocked in hundreds of stores including Central Market in Texas. Concurrently, we launched a contract manufacturing and private label business, serving other brands and food service companies in Houston with our gluten-free baked goods.

JS: So, now ChipMonk is out in the world—how are you working to connect with retailers and customers, and spread the good word?

DD: Marketing comes in so many forms, which can be overwhelming. While we maintain a presence on major social media platforms and have garnered press coverage, our primary focus is on our existing customers. We operate an invite-only VIP Facebook group for repeat customers, offering exclusive insights into our company's direction. Additionally, I personally conduct regular interviews with our top repeat customers to gather feedback and improve their experience. With over 50% of our website sales from repeat customers and 500+ five-star reviews online, we prioritize building strong relationships with those who truly benefit from our product, recognizing the power of word-of-mouth over targeting the entire market indiscriminately.

JS: Do you have a favorite product in the line?

DD: I’m always tinkering with recipes, so my favorite changes quite frequently. I recently developed a line of oat flour muffins for K-12 schools, and they are delicious (the carrot cake flavor is my favorite). Speaking of carrot cake, we also do a carrot cake keto cookie icing sandwich with limited releases on our website that is to die for.

JS: What’s next for ChipMonk?

DD: In late 2023, I connected with Mason Arnold, a prominent entrepreneur in the Austin CPG sector. Mason was launching a new venture called Small Potatoes, aimed at supporting promising food brands with shared services, addressing the challenge for mid-sized brands lacking resources for top-tier sales, marketing, and administration. Recognizing ChipMonk’s potential, Mason and his partners acquired the brand in February, injecting new energy and resources to propel us forward. My role is shifting to overseeing brand development and leading business expansion efforts. I'm particularly focused on enhancing the ChipMonk brand’s go-to-market strategy and expanding our contract manufacturing arm. Ultimately the goal is for us to move into an even larger facility with expanded capabilities for both our brand and our contract manufacturing clients. Excited for the journey ahead, I'm eager to assist other gluten-free baked goods businesses in scaling up and would welcome any to reach out to me directly!