USA—Magic Spoon, a US breakfast cereal maker, has secured US$85 million in investment in a Series B funding round, bringing total funding to date to US$100 million, which the company says will be used to expand from 100% direct-to-consumer into retail.
Magic Spoon is making its retail debut in Target stores nationwide and will launch in additional retailers throughout this year.
Co-founder Greg Sewitz said: “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.”
The funding round was led by HighPost Capital, which was joined by fellow investors including Siddhi Capital, Coefficient Capital and Constellation Capital.
Celebrities – including pop star Shakira, rapper Nas, electronic duo The Chainsmokers and American footballer Odell Beckham Jr. – also took part.
David Moross, CEO of HighPost Capital – co-founded by Mark Bezos, younger brother of Amazon founder Jeff Bezos – said: “We are excited to announce our investment in Magic Spoon, which immediately upended the old-school cereal industry when it launched in 2019
“In a short period of time, [co-founder] Gabi [Lewis] & Greg have built a tremendous brand with a fiercely loyal and engaged consumer base through their unwavering commitment to innovation and creativity.”
Magic Spoon was launched in 2019 and it is said to have reached one million customers in the three years since.
And, while it has mostly been a direct-to-consumer brand, Lewis says adding retail was part of the plan all along.
“The plan was to grow the business as fast as we can and layer in new things over time,” Lewis told TechCrunch. “We wanted to do one thing at a time, do it well and then move on to the next one.
We started with our website, then Amazon, with the goal of layering on additional channels to grow in new and different ways. Now we are ready to lean into retail and go onto shelves.”
Its cereals – with flavours including Fruity, Cocoa and Peanut Butter – are high in protein, low in carbs, keto-friendly and free of gluten, grains, soy, and artificial ingredients.
Those three flavors are the first among Magic Spoon’s eight flavors to go into 1,300 Target locations beginning Monday.
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