Dive Brief:

• Better-for-you cereal maker Magic Spoon is broadening its retail launch to be available in more than 6,800 stores nationwide. The cult favorite cereal brand started in 2019 as a direct-to-consumer offering.
• Magic Spoon first became available at retail last summer, when it launched at Target. The brand will now be available at more Target stores, as well as Walmart, Kroger and Albertsons stores.
• While many brands begin with smaller direct-to-consumer offerings, Magic Spoon is one of the rare brands that has been able to quickly parlay success online to performance in many retail stores.

Dive Insight:

Magic Spoon has achieved something largely improbable. The company went into cereal at a time when sales of the traditional breakfast staple were falling. It appealed to adults and parents alike with healthier versions of sweet childhood cereals. It succeeded in getting consumers to pay premium prices for their cereal, which is around $9 a box. And it built an online consumer base of more than 1 million customers before getting to retail stores, according to the company.

With this launch, the company is getting closer to its vision of making Magic Spoon readily available. The stores where it will be stocked represent some of the nation’s biggest grocery chains.

Each store will carry the brand’s best selling core flavors, including Fruity, Frosted, Cinnamon and Cocoa. Some retailers may also carry specialty flavors.

In the last four years, the cereal brand has raised more than $100 million. It closed its $85 million Series B round in June, drawing funds from firms including HighPost Capital and celebrities including musicians Shakira and Nas, comedian Amy Schumer, and athletes Russell Westbrook and Odell Beckham Jr. 

Gabi Lewis and Greg Sewitz founded Magic Spoon to disrupt what they described as a “stale yet massive category.”

“When you look at the products that they are all putting out, pretty much everything in that cereal aisle today is high sugar, high carbs and full of junk, which is counter to every consumer trend we’re seeing,” Lewis told Nosh in 2018.

Magic Spoon’s cereals are high in protein, with 12 to 14 grams per serving; sugar-free, using a blend of allulose and monk fruit as sweeteners; and both gluten and grain free, using ingredients including milk protein and tapioca starch to create the pieces.

The ingredient and nutritional differentiators have been key to Magic Spoon’s success from the beginning, the company said. Its start in the DTC channel also provided it with vital insights into its consumer base, which Magic Spoon said allowed it to hone in on feedback. In a statement, the company said that the wider retail launch will also bring new insights into consumer purchasing and the desire for better-for-you products.