Cereal company Magic Spoon secured $85 million in Series B funding as a new Direct-to-Consumer (DTC) cereal brand.
Magic Spoon is a cereal startup that promotes itself as a “nostalgia-flavored cereal” that is both low in carbs and high in protein, claiming to be the “healthy cereal that tastes too good to be true.”
A year after the company’s launch, cofounder Gabi Lewis said, “We’ve seen a meaningful uptick in demand from new customers just discovering us or finally giving us a try.”
Magic Spoon is also seeing an increase in sales from “existing customers, who maybe ate a bowl in the morning before work but now that they’re [working from home more]… they’re eating another bowl in the afternoon for a snack … [We’re seeing] consumption [go] up.”
Magic Spoon was founded to bring back the sugary treats of millennials’ youth but with a healthy twist.
Lewis said of Magic Spoon’s origins, “It’s also been amazing to see how it’s resonated with not only who we originally thought of as the target consumer — the health-conscious millennial like myself and my cofounder Greg, who grew up eating cereal everyday and then stopped because it was terrible for them— but actually it’s resonated with parents, children, families, even older individuals who just wanted more protein in their diets.”
In addition to being sugar-conscious, Magic Spoon cereal is gluten-free and keto-friendly. Magic Spoon is available in many nostalgic and new flavors, including fruity flavor, cocoa, peanut butter, cinnamon roll, frosted, blueberry muffin, maple waffle, and cookies and cream options.
In an interview with TechCrunch, Lewis explained how the company built itself by focusing on one area at a time before growing into the next:
“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.”
Even as it continues to depend on its DTC roots, Magic Spoon recently made a deal to sell some of its flavors at Target stores nationwide.