Dive Temporary:
- Magic Spoon, maker of better-for-you cereals, has raised $85 million in a Sequence B investment spherical. HighPost Capital used to be the lead investor. It used to be joined via a number of funding corporations in addition to superstar traders, together with musicians Shakira and Nas, comic Amy Schumer, and athletes Russell Westbrook and Odell Beckham Jr.
- The emblem, which first introduced in 2019 as 100% direct-to-consumer, additionally introduced its nationwide retail release at Goal, which can inventory 3 of its best-selling flavors: Fruity, Cocoa and Peanut Butter. Magic Spoon plans to roll out to further shops all the way through the remainder of this 12 months.
- Magic Spoon mentioned it’ll use the investment on emblem construction and product innovation. The money infusion units the degree for an competitive retail rollout at a time when customers are rediscovering breakfast and festival is rising for his or her consideration.
Dive Perception:
With 13 to fourteen grams of protein and most effective 4 grams of carbs in line with serving, and freed from added sugar, gluten, grains, soy and synthetic components, Magic Spoon does now not essentially sound like a a laugh time. However the emblem has established its luck because of its whimsical packaging and flavors like Blueberry Muffin, Cookies & Cream and Maple Waffle that make its millennial fan base really feel like they may be able to consume more healthy whilst being reminded of formative years cereal favorites.
Previously 3 years, Magic Spoon has reached greater than 1 million shoppers via its cereal, consistent with the corporate. In February, the emblem offered a line of limited-edition bars that still boast a excessive protein and coffee sugar and carb content material, in addition to being gluten and grain-free. They briefly bought out, consistent with the corporate. Magic Spoon plans to make the cereal bars a part of its everlasting lineup this month.
It’s rather the short trail to luck for Magic Spoon, which introduced as a purely DTC emblem geared toward reinventing cereal only some years in the past, and with obscure ambitions of a retail presence. Gabi Lewis and Greg Sewitz based Magic Spoon to compete in opposition to the large 3 cereal makers — Kellogg, Basic Generators and Submit Holdings — and disrupt what they described as a “stale but large class.”
“While you have a look at the goods that they’re all hanging out, just about the entirety in that cereal aisle these days is excessive sugar, excessive carbs and filled with junk, which is counter to each and every person development we’re seeing,” Lewis informed Nosh in 2018.
Whilst they proceed to churn out extra indulgent fare, the Large Cereal makers have additionally been chasing the better-for-you breakfast development. Kellogg has rebranded and invested in Kashi in its pursuit of Gen Z and millennial customers, and its clean-label RX emblem has expanded into cereals and breakfast bars. Basic Generators has honed in on innovation with manufacturers like Morning Summit and GoodBelly probiotic cereal.
Then there are different scrappy startups like 3 Needs, which additionally introduced in 2019, and has a focal point on high-protein, low-sugar and grain-free cereal choices in a an identical vary of a laugh flavors. In contrast to Magic Spoon, 3 Needs started with a brick-and-mortar retail fashion, and these days is stocked at Entire Meals Marketplace, Wegmans, Sprouts Farmers Marketplace and Erewhon, even supposing it is usually construction its e-commerce presence.
For Magic Spoon, this newest, large fundraising spherical will carry its overall carry to just about $100 million, consistent with Crunchbase. The cash shall be important to lend a hand it keep one step forward of its festival — and stay alongside of evolving person wishes.
