In this episode of The Future of Consumer Marketing, host Roman Kirsch interviews Matthew Kelly, Founder of Spacegoods, a functional beverage brand that has raised over ÂŁ6 million and become the UK’s leading mushroom coffee company. After experiencing a dramatic business failure, Matthew rebuilt from his lowest point to create a premium wellness brand that challenges the black-and-brown aesthetic of traditional supplement companies with bold pink and purple branding. Through disciplined focus on unit economics, creative-first marketing, and authentic founder storytelling, Spacegoods has grown from a single-product launch to a multi-million pound business targeting the premium wellness market.
Topics Discussed:
- Rebuilding after catastrophic business failure
- Creating differentiated positioning in crowded functional beverage market
- Building subscription-first business model with strong unit economics
- Transitioning from bootstrap to venture funding and managing investor relationships
- Developing creative-first performance marketing strategies
- Expanding from direct-to-consumer to multi-channel retail strategy
Lessons For Consumer Marketers:
Make Bold Visual Choices in Commoditized Categories
When entering the functional beverage space dominated by black, brown, and green branding, Matthew deliberately chose pink and purple gradients for Spacegoods. This wasn’t just aesthetic rebellion—it was strategic differentiation that made the brand instantly recognizable and helped it stand out in crowded retail environments and social feeds.
Prioritize Unit Economics Over Vanity Metrics from Day One
Matthew learned from expensive mistakes that many first-time founders underestimate customer acquisition costs. He built Spacegoods with subscription pricing that could support Meta advertising costs, emphasizing that products under ÂŁ20 simply cannot sustain performance marketing economics in today’s landscape.
Focus on Creative Quality Over Channel Diversification
Rather than spreading efforts across multiple advertising platforms, Matthew concentrated on mastering Meta and Google through superior creative content. He argues that creative is now the single most important factor in performance marketing, with media buying becoming increasingly automated and commoditized.
Use Founder Vulnerability as Authentic Brand Storytelling
Matthew’s openness about his business failure and personal struggles with depression created authentic content that resonated with his target audience. His “comeback arc” narrative—documenting his journey from rock bottom to building Spacegoods—became a powerful marketing asset that couldn’t be manufactured by traditional agencies.
Build Products Around Customer Jobs-to-be-Done, Not Ingredient Lists
Instead of leading with complex ingredient explanations like most supplement brands, Matthew positioned Spacegoods around the emotional outcome: “unlock your full potential.” He recognized that customers don’t care about Lion’s Mane mushrooms—they care about feeling focused and energized.
Maintain Creative Control While Scaling with Investment
After raising venture capital, Matthew initially deferred too much to investor opinions on brand positioning and strategy. He learned to balance investor input with founder instinct, recognizing that investors backed him for his unique vision, not to replicate conventional wisdom.
Design for Retail Success from the Beginning
Even as a direct-to-consumer brand, Matthew designed Spacegoods packaging and branding to work in retail environments. The distinctive gradient colors and premium positioning helped secure placement with major UK retailers, with retail now representing a significant portion of revenue.
