When Little Spoon co-founders Ben Lewis and Angela Vranich lost a significant Whole Foods Market deal in 2015, they could have viewed it as a devastating setback. Instead, they told Inc. it became “the best thing that ever happened to them,” forcing them to build a robust direct-to-consumer business that would eventually position them for unprecedented retail success.
The Strategic Pivot From DTC to Retail Expansion
After spending nearly a decade building a successful direct-to-consumer operation, the founders were naturally hesitant about partnering with another major retailer. However, the data revealed an undeniable opportunity. According to a 2022 USDA survey, only 20 percent of Americans purchase groceries online, meaning Little Spoon was missing a substantial portion of potential customers.
“We didn’t want to just sprinkle a few SKUs,” Vranich emphasized about their retail approach. “We wanted to make sure that we were aligning ourselves with a partner who was really going to help us bring the product to retail in a big way.” This strategic mindset would prove crucial in their negotiations with Target Corporation.
Customer Data Reveals Target as the Ideal Retail Partner
Through comprehensive emailed customer surveys, Lewis and Vranich discovered that 80 percent of their existing customer base regularly shopped at Target. This data point became the foundation of their retail strategy. Fortunately, the relationship wasn’t entirely new – a Target frozen buyer had previously reached out after noticing how effectively Little Spoon’s baby, toddler, and kid food products resonated with young parents.
The initial proposal involved selling Little Spoon’s frozen ready-to-eat meal plates, but the founders had developed deeper insights from their customer interactions that suggested a different approach. While the brand Little Spoon shares its name with a musical group, its business strategy proved to be anything but discordant.
Turning Customer Requests Into Retail Innovation
Since launching their frozen meal plates in 2020, Little Spoon had received numerous customer requests for individual components from these meals, particularly items like turkey kale meatballs. While selling frozen foods in bulk didn’t align with their DTC model, the founders meticulously logged every request.
“It eventually became one of the bigger requests that we’ve gotten,” Lewis noted. This customer-driven insight inspired them to pitch Target on developing an exclusive line of frozen multi-serve foods specifically designed to meet this documented demand. The approach demonstrates how retail success often comes from listening to what customers actually want rather than assuming what they need.
Strategic Negotiation and Unprecedented Scale
Target was so impressed with the proposal that they offered Little Spoon the chance to launch the frozen line in 2024. Surprisingly, the co-founders “very respectfully declined” this initial opportunity because they envisioned something significantly larger. Their patience and strategic vision paid off spectacularly.
This week, Little Spoon is rolling out 23 products spanning six different aisles – produce, dairy, frozen, lunch box, salty snacks, and baby – to more than 1,800 Target locations. According to a Target spokesperson, this represents the retailer’s largest food and beverage launch in its history.
Proven Track Record and Future Outlook
Little Spoon’s retail expansion builds upon impressive foundational success. Since its DTC launch in 2017, the company has sold more than 80 million meals and achieved a 79 percent compound annual growth rate over the past five years. While the brand declined to share specific 2024 revenue figures, they confirmed reaching profitability that year.
Lewis explained their partnership philosophy: “The same way that we listened to our customers, we really started by trying to listen to Target. Like, where do they see gaps in their aisles? Where do they think that there is an opportunity to bring some newness and meet the needs of their shopper more effectively?”
Broader Industry Context and Strategic Implications
This successful retail expansion occurs alongside significant developments across multiple industries. Recent technological advances include new Android security concerns that highlight the importance of digital protection in business operations. Meanwhile, platforms like YouTube’s mental health initiatives and OpenAI’s wellness council demonstrate how companies across sectors are prioritizing user wellbeing.
Even as satellite security concerns emerge and financial institutions adjust their outlooks, Little Spoon’s story illustrates how customer-centric strategies and strategic partnerships can drive remarkable growth in any economic environment.
Key Takeaways for Entrepreneurs
Little Spoon’s journey from a lost Whole Foods deal to Target’s largest food and beverage launch offers valuable lessons for business founders. The company’s success demonstrates that setbacks can become opportunities, customer feedback should drive product development, and strategic patience in partnership negotiations can yield extraordinary results.
Most importantly, their story shows that deeply understanding both your customers and your retail partners creates the foundation for scalable growth that benefits all stakeholders – from the founders who built the business to the parents who will now find Little Spoon products conveniently available in their local Target stores.
