Continued Growth of DTC Food & Beverage

Introduction

The food and beverage category has quietly become one of the strongest growth stories in DTC e-commerce. What started as a COVID-era delivery boom has evolved into a sustained expansion powered by functional wellness, flavor innovation, and repeatable programs that build habit.

This edition of the report highlights three breakout brands — Magic Spoon, Oats Overnight, and MUD\WTR — each of which turned Summer 2025 into a growth engine. Their approaches differ, but together they show how clear product strategies and thoughtful marketing can double or even triple unit sales year over year.

Magic Spoon

In Summer 2025, Magic Spoon sold 1.6M units, more than double the 740K units it moved in the same period last year. Rather than losing steam after years of strong growth, the brand hit new highs by anchoring its business around bundles and flavor-driven marketing events.

Sales Drivers

The Everything Bundle dominated week after week, confirming that shoppers prefer variety when buying in bulk. Magic Spoon layered this with timed bursts of demand:

• Flavor launches like French Toast and Peaches & Cream in June.
• Holiday-driven promos, including a Fourth of July push that lifted sales above $4M for the week.
• Customization tools that let buyers build bundles but still funneled demand into the hero Everything Bundle.

Growth Strategy

Magic Spoon’s playbook is clear: make the bundle the star, refresh it with flavor drops, and surround it with short promotional bursts. It is a model that maximizes repeat purchase while keeping the catalog feeling new.

Oats Overnight

Oats Overnight has turned subscription into a growth flywheel. In Summer 2025, the brand moved 10.7M units, up nearly 90 percent from 5.6M units the year before. Its approach combines first-order discounts, frequent flavor launches, and retail tie-ins that pull new customers into the funnel.

Sales Drivers

Subscription was the centerpiece. Repeated 25 percent off first-time subscriber offers across June through August created a steady influx of new customers. Flavor innovation added another lever:

• Coffee-inspired entries like Chocolate Cherry Iced Protein Coffee and Toasted Marshmallow.
• Seasonal launches including Orange Cream Pop and Honey Oat Cereal.
  Retail also mattered. Costco flavor drops drew attention, while DTC promotions converted that trial into ongoing subscriptions.

Growth Strategy

Oats Overnight shows that subscription can be an acquisition tool, not just a retention one. Pairing first-order discounts with flavor news and retail visibility created a layered funnel that more than doubled summer unit sales.

MUD\WTR

MUD\WTR expanded beyond its morning ritual roots this summer. Unit sales climbed to 409K in Summer 2025, a 77 percent jump from 231K units last year. Growth came from a combination of sitewide promos, new product launches, and category expansion into apparel and wellness shakes.

Sales Drivers

Promotions created predictable peaks, from a Fourth of July sitewide 20 percent off to targeted discounts on mushroom blends. But the real story was innovation:

• The Nourish wellness shake line introduced protein into the portfolio, supported by collaborations and starter kits.
• Even apparel made noise, with a premium hoodie cracking the top sellers in August.

Growth Strategy

By extending its brand into adjacent rituals beyond the morning cup, MUD\WTR broadened its use cases and raised purchase frequency. The combination of new formats, smart promos, and community-driven launches positioned the brand for sustained momentum.

Key Takeaways

The success of these three brands shows how food and beverage has become a proving ground for DTC playbooks:

1. Anchor the offer in a hero SKU or bundle. Whether it is Magic Spoon’s Everything Bundle or Oats Overnight’s subscription starter packs, the clear default reduces friction and builds volume.
2. Use promos with intent. Targeted bursts around holidays or product launches add urgency without cheapening the brand.
3. Extend the ritual. Brands that expand into adjacent categories — from protein shakes to apparel — increase purchase frequency while keeping the core intact.

Food and beverage may be one of the oldest consumer categories, but in DTC it is writing some of the freshest growth stories.

Sources

• Exploding Topics
• Particl Database