After 67 investor rejections and years of tinkering with nootropics and adaptogens, Magic Mind’s tiny green shot made its big leap into mass retail last year.
While Magic Mind isn’t trying to replace coffee, the 2-ounce caffeine- and botanical-infused shots intend to complement it, according to Co-founder William Hicks.
With claims to support cognitive performance, mood, energy and sleep, the idea behind Magic Mind was rooted in Co-founder James Beshara’s need to reduce caffeine intake due to health issues.
After discovering the benefits of nootropics, adaptogens and l-theanine, Beshara found a commercial kitchen in San Jose, Calif., to develop the first batches of Magic Mind, Hicks explained.
Since launching in March 2020, the brand scaled from direct-to-consumer to major retailers and specialty stores, like Whole Foods Market, Erewhon, Albertson’s, Sprouts Farmers Market and Central Market.
Turning early rejection into retail momentum
Yet, the path to retail, like for many startups, is a winding one that began with many no’s, or 67 to be exact, Hicks explained.
“I like to say if you ask for money, you get advice. If you ask for advice, you get money,” he said.
For Magic Mind, landing the first term sheet was contingent upon building relationships and creating a compelling story supported by data prior to even starting the fundraise, he said.
“It’s less of a ‘Nice to meet you. I need your money.’ It’s, ‘Hey, you know that thing we’ve been talking about and getting your advice on? I’ve done this or I’ve disagreed and done that, but it’s actually really worked and there’s the opportunity to invest right now,’” Hicks explained.
Plus, a lean team of Beshara and Hicks for the first two years helped the brand get through several seed rounds that allowed them to “completely focus on DTC,” especially given the fragile state of retail’s supply chain during the pandemic, he added.
Landing in natural channels before scaling to mass
Before focusing on larger retailers, Magic Mind focused on its presence in natural channels.
The founders aimed to “feel the pull of demand” rather than “push distribution,” Hicks explained. That strategy first landed Magic Mind in Central Market in Texas and Sprouts Farmers Market nationwide, with Sprouts reaching out after seeing Magic Mind’s online ads and becoming customers. From there, the brand focused on the natural channel in Southern California and Texas, adding Erewhon and a group of UNFI Moreno Valley–supplied retailers such as Bristol Farms, Gelson’s and Harmons in Utah. After proving strong velocities across these natural accounts, Magic Mind expanded its natural-channel footprint and is now in Whole Foods Market nationwide.
The brand eventually optimized its retail formula strategy by doubling down in markets where it build its retail presence, Hicks explained.
Digital marketing drives Magic Mind’s growth
The muscle behind Magic Mind’s retail growth was rooted in its omnichannel presence.
“We were able to get the word out just through our run of the mill DTC marketing that we were already doing,” Hicks said – noting that shipping the product across the country made it an easy sell for both DTC and retailers.
The brand spends up to $1 million a month on digital marketing with roughly 60 million brand impressions per month on ads, which supports its retail growth, Hicks said.
“That’s building awareness in retail for Magic Mind well beyond where we could be awareness-wise from a retail store,” he explained.
Hicks said they focus on what works in digital, using online ads to build awareness so that when shoppers later see Magic Mind on sale at a retailer, they’re more likely to try it.
What sets Magic Mind apart in the functional beverage market?
With a myriad functional beverages on the market, how is Magic Mind setting itself apart?
Efficacy “by way of absorption,” thanks to liquid nanoencapsulation technology, emphasized Hicks. Bridging the gap between vitamins and beverages, Magic Mind’s formula claims to deliver benefits five times more effectively than its supplement counterparts, according to the company.
“We are the technology that we use,” Hicks said.
Beshara’s book, “Beyond Coffee: A Sustainable Guide to Nootropics,” reviews 80 nootropics and adaptogens, which informed Magic Mind’s formula.
Inside the formula: Caffeine levels and functional ingredients
The brand offers three caffeine options formulated for mental performance featuring ashwagandha, l-theanine, lemon balm, kava and 5-HTP: Original (55 milligrams of caffeine), Maxx (165 milligrams) and Free (no caffeine) for a “dialed in” effect, according to Hicks.
5-HTP is allowed in dietary supplements, which is how Magic Mind labels its products, but it is not considered a food ingredient. Similarly, Kava is permitted in dietary supplements, though FDA has issued warnings about possible liver risks.
The brand’s melatonin-free Sleep shot uses ashwagandha, l-theanine, lavender, valerian and chamomile. Valerian is permitted as a flavoring in foods and as a dietary-supplement ingredient.
“We’re not anti-coffee. We’re not a coffee replacement. For most of our consumers, we just think too much caffeine is sub optimal to how you want to feel and perform your best,” he said.
Want to know more about how F&B is innovating for longevity? Mark your calendar for May 13's broadcast
Join FoodNavigator during the Positive Nutrition broadcast Healthy ageing – nutrition for longevity and vitality on May 13.
As populations age and consumers increasingly seek to extend their healthspan – not just lifespan – food and beverage brands are rethinking how to support a productive, active ageing process.
This session explores how nutrition can help maintain muscle mass, cognitive function, bone health and metabolic resilience. From protein enrichment and omega-3 fortification to bioactive compounds and gut health strategies, we’ll uncover the science and innovation driving products tailored to older adults and ageing-conscious consumers.
Registration is free - click here to sign up.
