Cereal maker Magic Spoon makes $85 million hitting Target shelves

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magic spoonhealthy cereal maker has received $85 million in Series B funding as three of its brands move from consumer-only offerings to Target store shelves for the first time.

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HighPost Capital led the new round, bringing Magic Spoon’s total funding to date to $100 million. HighPost has been joined by Siddhi Capital, Coefficient Capital, Constellation Capital, Carter Comstock and a host of high-profile investors including Shakira, Russell Westbrook, Halsey, The Chainsmokers, Amy Schumer, Odell Beckham Jr. and Nas.

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Co-founders Gabi Lewis and Greg Sevitz founded Magic Spoon in New York City in 2019, creating cereal flavors like fruity, cocoa and peanut butter but with the best ingredients, no added sugar, high protein, low carbs, and also gluten free and gluten free. keto friendly.

These three flavors are the first of eight Magic Spoon flavors that will go on sale at 1,300 target locations starting Monday.

The couple declined to give exact numbers to support the company’s growth, but said Magic Spoon’s products have reached more than 1 million customers in the past three years.

And while it was mostly a consumer-facing brand, Lewis says the addition of retail was part of the plan from the start.

“The plan was to grow the business as quickly as possible and add new stuff over time,” Lewis told TechCrunch. “We wanted to do one thing at a time, do it well, and then move on to the next. We started with our website and then Amazon, with the goal of layering additional channels to grow in new and different ways. Now we’re ready to go retail and hit the shelves.”

In fact, Lewis and Sevitz have always planned on making products out of a cereal box. Sevitz said he can’t go into details on what other products are in development at this time, but Magic Spoon has a line of limited edition cereal bars that will become regular members of the product line this month.

Gaby Lewis Greg Sevitz The Magic Spoon

Magic Spoon co-founders Gaby Lewis and Greg Sevitz. Image credits: magic spoon

Magic Spoon isn’t the only company to offer a healthier version of breakfast. They are among companies such as OffLimits as well as crispy fantasy in cereals and creatures of habit as well as Ishi in the oatmeal space. Some also gobbled up venture capital dollars, grabbing a piece breakfast cereal market by 2028 it could be valued at $51 billion.

When asked who they consider their competitors to be, Lewis and Sevitz said they technically see themselves as competing not only with cereal brands, but with breakfast and snack brands in general, for the right to be at the kitchen table.

The new capital injection positions Magic Spoon as “very well capitalized with a retail launch,” Sevitz said. He noted that investments will be made in growth and adding talent to scale up logistics, customer service and growth marketing as the company balances both DTC and retail.

The company currently has 41 employees, up from 20 a year ago, and about a dozen open vacancies on your website. With the expansion of its sales channels in March, the company hired Rachel Lynch as head of sales to lead that department and work alongside the digital team to build this business, Lewis said. Lynch previously held sales positions at Mason Dixie Foods, Hu Products and Jeni’s Splendid Ice Creams. according to her LinkedIn profile.

David Moross, Co-Founder, Chairman and CEO of HighPost Capital, said in a statement that “In a short period of time, Gabi and Greg have built an amazing brand with a highly loyal and engaged consumer base through their unwavering commitment to innovation. and creativity. We look forward to leveraging HighPost’s deep experience in the consumer sector to support Magic Spoon’s continued growth.”


Credit: techcrunch.com /

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