Taking a DTC brand to IRL stores with Gabi Lewis from Magic Spoon
Jan 16, 2024
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Gabi Lewis, co-founder and CEO of Magic Spoon, shares their journey from a startup focused on insect protein to reinventing the cereal industry. They discuss challenges of introducing unconventional foods and the decision to expand from D2C to retail. They also touch on leadership evolution, favorite cereal flavors, and upcoming flavors.
Magic Spoon successfully transitioned from a DTC brand to an in-store retailer, effectively managing buyer relationships and store-to-store drama.
The team at Magic Spoon meticulously develops new cereals, incorporating customer feedback to create tasty and healthy options.
Magic Spoon disrupts the cereal industry by offering a healthier alternative to traditional sugary cereals, focusing on taste, texture, and branding.
Deep dives
Magic Spoon: Reimagining Breakfast Cereal
Gabby Lewis, the co-founder and CEO of Magic Spoon, discusses how the company reimagines favorite breakfast cereals with more protein, less sugar, and fewer carbs. They aim to recreate the taste and texture of nostalgic cereal flavors without the unhealthy ingredients. Magic Spoon initially started as a direct-to-consumer brand and later expanded into retail, which now accounts for half of their business. The company focuses on creating a product that satisfies the desire for fun and delicious cereal while also promoting health and wellness.
The Journey from Bridgewater to Cereal Entrepreneurship
Gabby Lewis shares her journey from studying philosophy and economics to co-founding a startup that creates insect protein bars. The goal was to introduce Americans to the idea of consuming insects as a sustainable and healthy protein source. After selling that business, they found the inspiration to create Magic Spoon, a cereal brand that provides a healthier alternative to traditional sugary cereals. The transition from the insect protein business to the cereal industry was driven by the desire to disrupt a large, stagnant market and offer consumers a product that tastes good and is good for them.
Product Development and Branding Strategy
The podcast delves into the challenges of developing a cereal that looks and tastes like traditional sugary cereals while maintaining a healthier recipe. The focus was on formulating the right taste and texture using natural sweeteners and flavorings, in addition to exploring the nostalgia and branding associated with traditional cereals. The team aimed to create a product that eliminated the need for consumers to compromise between healthy and enjoyable breakfast options. The branding strategy included colorful packaging and psychedelic cereal characters that pay homage to classic cereal branding while standing out on the shelves.
Transitioning from DTC to Retail and Scaling
After initially focusing on direct-to-consumer (DTC) sales, Magic Spoon successfully transitioned into retail stores, such as Target and Walmart. This move allowed the company to reach a wider audience and expand its business significantly. Scaling involved hiring experts in areas such as logistics, operations, and trade marketing, as well as bringing in influencer investors to amplify marketing efforts. With the success of their cereal product, Magic Spoon has also ventured into adjacent product categories, such as the recently launched treats that combine elements of protein bars and rice crispy treats.
Conclusion
Gabby Lewis and Magic Spoon have disrupted the cereal industry by offering a healthier alternative to traditional sugary cereals. Through product innovation, branding strategy, and a transition from DTC to retail, the company has achieved significant growth and popularity. Magic Spoon continues to meet the demand for a cereal that is enjoyable, nostalgic, and nutritious.
Grab your spoon and a carton of milk because today on Found we’re talking to Magic Spoon co-founder and CEO Gabi Lewis. Magic Spoon creates cereal flavors that play on our nostalgia for Fruit Loops and Cocoa Puffs with a grown-up high-protein twist. Dom and Becca talk with Gabi about how he and his co-founder prioritized product-market fit and found investors who didn’t think cereal was dead. They also talked about:
What Gabi learned from his previous startup Exo which made cricket-protein bars and how he’s changing his leadership style at Magic Spoon
Transitioning from being a solely DTC brand to in-store retailer and how he’s learned to manage buyer relationships and store-to-store drama.
How meticulously they develop new cereals and how they’ve incorporated customer feedback.
(0:00) Welcome Gabi Lewis
(1:45) Magic Spoon TLDR
(3:38) Innovating in the food industry
(11:40) Managing DTC and IRL retail
(24:00) Acquisitions and competition
(28:15) Entrepreneurship, product development, and leadership evolution
