The new kid in the cereal aisle

Last week, Magic Spoon announced they're expanding to ~7k grocery stores nationwide.

It begs the question -- how did a cereal upstart go from a D2C pipe-dream to national grocery distribution in under 5 years?

Let’s take a step back.

If you’re anything like me, your childhood mornings started with a huge bowl of cereal while watching SportsCenter.

Turns out we weren’t alone. One estimate claims the average American eats 100 bowls of cereal per year — which includes people that don’t eat any!

But as Americans have become more health conscious, cereal has drawn scrutiny — a bowl full or carbs and sugar isn’t how the aspirational American starts their day.

That’s where Magic Spoon comes in.

In 2019, the company launched with the goal of disrupting this “stale, but massive category,” by offering cereal that’s gluten free, sugar free, and packed with protein.

You may be wondering how much a box of this cereal will run you, and that’s where it gets interesting.

In a world where a typical box of cereal costs $3 to $5, Magic Spoon charged $10 per box, and required customers to buy a minimum of 4 boxes at a time.

The craziest part?

The company has gotten more than a million people to pull the trigger on a $10 box of cereal, which has given them the confidence to take their act to the grocery aisle.

What did Magic Spoon get right?

• Product: Customers widely praise the taste of Magic Spoon’s cereal, which is key. If it was gross, none of this would have happened.
• Marketing: With cartoon-laden branding, Magic Spoon capitalizes on the nostalgia of its customer base, making them feel like kids again.
• Pricing: Recognizing their product is aspirational, Magic Spoon used pricing to distance themselves from existing options, charging more than double the price of the typical box.

Now, they’re bringing it to the masses, fueling a new wave of cereal nostalgia, but without the sugar crash.

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