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Cereal maker Magic Spoon scoops up $85M because it lands spot on Goal cabinets – TechCrunch


Magic Spoon, the maker of better-for-you cereals, secured $85 million in Collection B funding as three of its manufacturers make the bounce from direct-to-consumer-only choices to Goal retailer cabinets for the primary time.

HighPost Capital led the brand new spherical, which brings Magic Spoon’s whole funding thus far to $100 million. HighPost is joined by Siddhi Capital, Coefficient Capital, Constellation Capital, Carter Comstock and a bevy of superstar buyers, together with Shakira, Russell Westbrook, Halsey, The Chainsmokers, Amy Schumer, Odell Beckham Jr. and Nas.

Co-founders Gabi Lewis and Greg Sewitz began New York-based Magic Spoon in 2019, creating cereal flavors like Fruity, Cocoa and Peanut Butter, however with higher substances, zero added sugar, excessive protein and low carbs, in addition to gluten free and keto-friendly.

These three flavors are the primary amongst Magic Spoon’s eight flavors to enter 1,300 Goal areas starting Monday.

The pair declined to share exhausting numbers to assist the corporate’s development, however did say that Magic Spoon’s merchandise have reached greater than 1 million clients up to now three years.

And, whereas it has principally been a direct-to-consumer model, Lewis says including retail was a part of the plan all alongside.

“The plan was to develop the enterprise as quick as we are able to and layer in new issues over time,” Lewis instructed TechCrunch. “We needed to do one factor at a time, do it properly after which transfer on to the following one. We began with our web site, then Amazon, with the aim of layering on further channels to develop in new and alternative ways. Now we’re able to lean into retail and go onto cabinets.”

In reality, Lewis and Sewitz have at all times deliberate to launch merchandise away from the cereal field. Sewitz mentioned he couldn’t go into extra element right now as to what different merchandise are within the pipeline, however Magic Spoon has a line of limited-edition cereal bars, which is able to turn into everlasting members of the product line this month.

Gabi Lewis Greg Sewitz Magic Spoon

Magic Spoon co-founders Gabi Lewis and Greg Sewitz. Picture Credit: Magic Spoon

Magic Spoon shouldn’t be alone in tackling a more healthy model of breakfast. They’re amongst firms like OffLimits and Crispy Fantasy in cereal and Kreatures of Behavior and Yishi within the oatmeal house. Some have additionally wolfed up enterprise capital {dollars} as they seize a chunk of a breakfast cereals market poised to be valued at $51 billion by 2028.

When requested who they suppose their opponents are, Lewis and Sewitz say they don’t technically consider themselves as competing in opposition to simply cereal manufacturers, however with breakfast and snack manufacturers, as a complete, for the fitting to be on the kitchen desk.

The brand new capital injection positions Magic Spoon as “very properly capitalized with its retail launch,” Sewitz mentioned. He famous that investments can be made in development and including expertise to scale up round logistics, customer support and development advertising as the corporate balances each DTC and retail.

The corporate at present has 41 workers, up from 20 a yr in the past, and has about a dozen open jobs on its web site. With the enlargement of its gross sales channels, it made the transfer to usher in Rachelle Lynch as head of gross sales in March to guide that division and work alongside the digital group to construct that enterprise, Lewis mentioned. Lynch beforehand held gross sales roles at Mason Dixie Meals, Hu Merchandise and Jeni’s Splendid Ice Lotions, in accordance with her LinkedIn profile.

David Moross, co-founder, chairman and CEO of HighPost Capital, mentioned in a press release that, “In a brief time period, Gabi and Greg have constructed an amazing model with a fiercely loyal and engaged client base by their unwavering dedication to innovation and creativity. We stay up for leveraging HighPost’s deep client sector experience to assist Magic Spoon’s continued development.”

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