Magic Spoon Raises $85 Million, Expands into Retail – What Does This Mean for Other DTC Food & Beverage Brands?
The fundraise heard ‘round the world shows retailers are looking for better-for-you options, but is starting in DTC the new norm for food & beverage brands?
Magic Spoon, the maker of better-for-you cereals, recently secured $85 million in Series B funding, and announced an expansion into brick-and-mortar retail with three of its flavors.
The new round was led by HighPost Capital, bringing Magic Spoon’s total funding to date to $100 million (HighPost is joined by Siddhi Capital, Coefficient Capital, Constellation Capital, Carter Comstock and a laundry list of celebrity investors).
Founded in 2019 by Gabi Lewis and Greg Sewitz, the New york-based company’s product line is made with good-for-you ingredients that are zero added sugar, high protein, low carb, as well as gluten free and keto friendly. The brand’s three OG flavors – Fruity, Cocoa and Peanut Butter – are the first three to be hitting 1,300 Target shelves across the US.
The duo started the company to compete against the big three cereal makers — Kellogg, General Mills and Post Holdings — and disrupt what they described as a “stale yet massive category.” With their launch into Target nationwide, they're closer to making this a reality.
Up until this point Magic Spoon has focused strictly on DTC sales, and with its expansion into Target poses the question: what does this mean for other direct-to-consumer food brands? A few thoughts…
Magic Spoon’s launch with DTC may be the new model for emerging food & beverage (less overhead, ability to drop ship and keep a lean team)
But omnichannel is still the way to go mainstream
Retailers are looking for better-for-you options (i.e. Halo Top, Caulipower, Quest)
What do you think? We'd love to hear your thoughts.
Magic Spoon, the maker of better-for-you cereals, recently secured $85 million in Series B funding, and announced an expansion into brick-and-mortar retail with three of its flavors.
The new round was led by HighPost Capital, bringing Magic Spoon’s total funding to date to $100 million (HighPost is joined by Siddhi Capital, Coefficient Capital, Constellation Capital, Carter Comstock and a laundry list of celebrity investors).
Founded in 2019 by Gabi Lewis and Greg Sewitz, the New york-based company’s product line is made with good-for-you ingredients that are zero added sugar, high protein, low carb, as well as gluten free and keto friendly. The brand’s three OG flavors – Fruity, Cocoa and Peanut Butter – are the first three to be hitting 1,300 Target shelves across the US.
The duo started the company to compete against the big three cereal makers — Kellogg, General Mills and Post Holdings — and disrupt what they described as a “stale yet massive category.” With their launch into Target nationwide, they're closer to making this a reality.
Up until this point Magic Spoon has focused strictly on DTC sales, and with its expansion into Target poses the question: what does this mean for other direct-to-consumer food brands? A few thoughts…
Magic Spoon’s launch with DTC may be the new model for emerging food & beverage (less overhead, ability to drop ship and keep a lean team)
But omnichannel is still the way to go mainstream
Retailers are looking for better-for-you options (i.e. Halo Top, Caulipower, Quest)
What do you think? We'd love to hear your thoughts.
Magic Spoon, the maker of better-for-you cereals, recently secured $85 million in Series B funding, and announced an expansion into brick-and-mortar retail with three of its flavors.
The new round was led by HighPost Capital, bringing Magic Spoon’s total funding to date to $100 million (HighPost is joined by Siddhi Capital, Coefficient Capital, Constellation Capital, Carter Comstock and a laundry list of celebrity investors).
Founded in 2019 by Gabi Lewis and Greg Sewitz, the New york-based company’s product line is made with good-for-you ingredients that are zero added sugar, high protein, low carb, as well as gluten free and keto friendly. The brand’s three OG flavors – Fruity, Cocoa and Peanut Butter – are the first three to be hitting 1,300 Target shelves across the US.
The duo started the company to compete against the big three cereal makers — Kellogg, General Mills and Post Holdings — and disrupt what they described as a “stale yet massive category.” With their launch into Target nationwide, they're closer to making this a reality.
Up until this point Magic Spoon has focused strictly on DTC sales, and with its expansion into Target poses the question: what does this mean for other direct-to-consumer food brands? A few thoughts…
Magic Spoon’s launch with DTC may be the new model for emerging food & beverage (less overhead, ability to drop ship and keep a lean team)
But omnichannel is still the way to go mainstream
Retailers are looking for better-for-you options (i.e. Halo Top, Caulipower, Quest)
What do you think? We'd love to hear your thoughts.
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