Magic Spoon

“The truth is, we're doing some things differently, but we're doing a lot of the same things, and it's working so much infinitely better now, partly because we've learned from some mistakes from XO, and we spent five years banging our heads against the wall, bu…”

“We then launched on Amazon, very quickly actually became the number one best selling cereal on Amazon.”

“Even down to the first month of Magic Spoon, we did a post from one of the same influencers that used to promote XO, and whereas at XO, if they did a post on Instagram about us, maybe generated a few hundred dollars, with Magic Spoon, that same influencer was …”

“Actually, currently, Whole Foods doesn't have products with allulose in them, so that, that's the reason we're not in Whole Foods currently.”

“There's no way around the fact that you have to be running these machines for eight-hour shifts, you know, pumping out tens of thousands of pounds of cereal to even make it worth anyone's while, and so it's just, The whole product category operates at a much l…”

“It's also worth mentioning that we've raised a little over a hundred million, but the most recent round, which was about a year and a half ago, about half of that round went to some early investors to give them liquidity.”

“We've raised a little over a hundred million over the course of four years.”

“So our first month, I think we were hoping to maybe do a hundred grand a month in sales towards the end of our first year. We blew past that after a few days.”

“Actually, what we did when we founded Magic Spoon is we created an equity pool for these influencers who are investors in the business, and based on the revenue they drove through their sites or email lists, we divided up this bonus equity pool Amongst them af…”

“And we ended up running this business purely direct to consumer for almost three years.”

“When you think about it, a cardboard cereal box that doesn't reseal at the top is actually not the most practical packaging to use. A stand-up pouch that you can reseal from a purely practical perspective Perhaps makes more sense, but that doesn't create the s…”

“You know, some investors we spoke to were so anti the idea. They actually said to us, okay, you can do this, but don't use the word cereal. That's a dirty word. You've got to call it clusters or rebrand cereal somehow.”

“And it can coat the cereal in a similar way, and so we were able to use a lot of the same equipment that regular cereal manufacturers use for our cereal.”

“10 years ago, we really couldn't have launched this business with a formulation that we felt was close enough to really make that trade-off worth it of, you know, nutrition for flavor.”

“So we raised a million dollars pre-launch, half of it from this VC fund, collaborative fund, and half of it was actually from Health Amonis influencers, who wrote small checks into the business and could then help us eventually launch it.”

“So the cereal category is, Is enormous, about eleven billion dollars, and it's been declining slightly, and people would actually say that to us as a reason for why we shouldn't go into that category, and we said to them, hey, why has nobody created a cereal, …”