DTC health cereal Magic Spoon expanding physical retail presence
- Direct-to-consumer cereal brand Magic Spoon is expanding its push into physical retail.
- The CPG brand sells high-protein, low-sugar cereals meant to mimic classic types of cereal.
- The company received $82 million in Series B funding last year and started selling inside Target.
Direct-to-consumer (DTC) cereal brand Magic Spoon is expanding its push into retail stores and will now appear in more grocery stores.
The CPG brand, known for its high-protein and low-sugar cereals and cereal bars, has inked a deal to appear in the largest grocery stores in the U.S., including at Walmart, Kroger and Albertsons, Food Navigator USAreported. The DTC cereal brand, which launched entirely online in 2019, first entered physical retail last year as part of a partnership with Target. The brand’s core offerings also will be available at more Target locations, the report said.
At the same time it announced its presence inside Target stores last year, Magic Spoon also secured $85 million in Series B funding led by the private investment firm HighPost Capital. Magic Spoon in a release at the time said the funding would help it transform from an entirely DTC model into more retail stores, and the brand said the investment would help it increase brand awareness. The CPG brand last summer also signaled that its retail partnerships would eventually extend beyond Target, and it last fall started selling its products at Sprouts Market stores.
“Our focus on a direct-to-consumer model when we launched was key as we were growing and establishing a presence in a tired category, but we are beyond ready and excited to be able to reach even more consumers across the country through our brick-and-mortar retail launch,” said Greg Sewitz, the co-founder of Magic Spoon, in the 2022 release.
Magic Spoon launched more than three years ago and offers healthier twists on classic cereal brands. Some of its most popular products include Fruity, Cocoa and Peanut Butter cereals that mimic the offerings from major players in the cereal market. But unlike most traditional cereal brands, Magic Spoon’s cereals offer about 13 grams of protein per serving and less than four grams of carbs. They also exclude added sugar, gluten, grains or soy, making them friendly to certain diets, like keto.
The cereals are more expensive than typical brands on the market, with a price tag of $39 for a box of four or $54 for a box of six, but Gabi Lewis, Magic Spoon’s co-founder and CEO, told Food Navigator that its target customers weren’t comparing the products to other cereals but were instead comparing them to other health-focused foods, like yogurt and protein bars.