It takes more than magic to succeed in the shot category, but pulling a rabbit out of a hat sometimes takes patience and a focus on fundamentals.
Magic Mind, producers of a line of functional 2 oz. shots available in refrigerated and shelf-stable varieties, had built its consumer base exclusively online since March 2020 before wading into retail last year with several key distribution partnerships. Leveraging its digital-first model, the brand is energizing its retail presence in the coming year behind line extensions and a new investment.
The Venice, Calif.-based brand’s approach to the category was always about differentiating from other high-caffeine and heavily sweetened energy shots like Tweaker or Bucked Up. The ingredient deck alludes to value propositions like cognition, stress management, vitality, and energy. Magic Mind sharpened its messaging around this idea from a “productivity shot” to a “mental performance elixir” last year.
The matcha-based shots are formulated with familiar nootropics and adaptogens like B vitamins, l-theanine, ashwagandha, turmeric and cordyceps, but also incorporate ingredients like Cognizin and bacopa monnieri (or water hyssop) to “sharpen the mind,” said CEO and co-founder William Hicks.
“Redefining energy with mental performance is our key vision,” he said.
Demand for “mood support” functional beverages was up 64% last year, according to SPINS latest 2025 Industry Update & Trends Predictions report. The estimated market value of wellness shots in the category was $6 million, representing a 6.5% increase over 2024.
Shot brands have tried a variety of use occasions to take share from 5-Hour Energy’s reign over the top of the category. Whether it’s a wellness approach like juice maker Suja or touting the athletic enhancement in ketone shots, Magic Mind’s strategy is attempting to capture demand among consumers hoping to improve mental focus and cognitive ability.
Innovation is part of the brand’s growth strategy. Magic Mind added a melatonin-free sleep aid shot in July and adapted its Mental Performance product as caffeine-free gummies in October. Next up are two new line extensions in the coming months that will help the brand go deeper among wellness and energy-seeking consumers.
“I’m very bullish on the shots category in general and believe it is one of the only beverage categories that can play in the omnichannel world,” said Hicks, who came to the brand in 2021 after co-founding lupini bean snacks and pasta brand Brami.
Hicks compares Magic Mind’s growth trajectory to how Magic Spoon built its brand. He describes the “flywheel strategy” of gaining consumer adoption and brand loyalty as a more organic and sustainable way to drive growth without having to reinvest capital into the costs associated with in-person retail.
The company uses a unique influencer marketing strategy that includes 25 agents based in Eastern Europe doing more than 100 deals monthly with micro- and medium-sized influencers by “scrapping and digging on YouTube and on podcast guest lists,” Hicks said.
“There’s obviously value in doing splashy, big influencer deals and that’s best handled by a ‘white glove team’ here in the U.S.,” he said. “But we’re trying to turn out hundreds and hundreds of posts and deals per month, which is best served by playing with a big team. It’s a much more viable business for us that we wouldn’t be able to afford to do here in the U.S.”
Through its online network, the shot maker has developed a network of 24,000 monthly subscribers to leverage as it expands into retail and “drives new customers into stores.”
Magic Mind began pursuing a more robust retail presence in December 2023. It landed in about 1,000 retail locations by the end of 2024 including Sprouts, H-E-B, Central Market and Erewhon as well as several independent convenience and specialty stores. It is hoping to reach 4,000 doors by the end of 2025.
Fueling this expansion into stores has been a recent undisclosed new investment secured over 2024. The brand would not discuss the specifics of the funding round, but it included capital from previous institutional investors, as well as Rocana Venture Partners, coming to the cap table.
Rocana invests in brands that support “the next generation of wellness,” like moringa brand Kuli Kuli, Olipop and Recess, among others.
“We’ve always said ‘no’ to energy drinks because we don’t want to be part of what we think is an increasing problem,” said Rocana co-founder and managing partner Gurdeep Prewal, citing increased sleep disruption and inefficient energy output from the proliferation of high-sugar, caffeinated drinks.
Magic Mind was an exception because of its clean-label and functional benefits, facilitating its transition from online to brick-and-morter.
“We really like to see beverage brands building their presence in retail and proving themselves there. The velocities have really outperformed everyone else on-shelf so that is a nice sign of confidence,” Prewal said. “I think it could probably be a $50 million business just on shots, if not more.”