Spiceology bets on TikTok Shop as grocery margins stay tight

By Tom Whitfield

Spiceology reports that 76% of its purchasers buy another product within a year. CEO Darby McLean said the brand now works with about 35 microinfluencers on TikTok Shop and has given the platform a dedicated budget.

TikTok Shop margins are rough for Spiceology. The brand's profit contracts after platform fees, affiliate commissions and small-parcel shipping costs come out of the sale, McLean said. Grocery margins are also rough, with retailer and distributor fees totaling about 50%, she said.

“It’s pretty close to even,” McLean said, comparing profit margins across the two channels. “They couldn’t be more different in terms of the material movement, but a really similar pricing profile.”

McLean said Spiceology needs efficient operations and marketing to compete in both channels. She said consumer packaged goods brands need both grocery and direct-to-consumer distribution in 2026, so shoppers can choose between store discovery and doorstep delivery.

McLean's warning was direct: do not miss shoppers who prefer either route. Her prescription was blunt: serve both groups rather than pick one.

McLean gave a rounded revenue mix:

• Restaurant and food service: 39%
• Retail: 35%
• Ecommerce: 27%

Spiceology built its business supplying restaurants and food-service companies with seasonings. McLean said the brand previously focused its marketing on acquiring restaurant chains and chefs as customers. When many dining establishments closed during the pandemic, Spiceology shifted its marketing and sales to consumers. It began pursuing everyday home cooks rather than professional chefs.

The brand now pursues restaurant buyers and home cooks at the same time.

Why does discovery now happen before the grocery aisle?

Food discovery now happens outside grocery stores, McLean said. She described the sequence this way:

“The discovery is happening outside of the grocery stores and then the surprise and delight moment happens when the consumer now walks into the grocery store and sees that thing that they'd already been familiar with because of a place like TikTok Shop or Instagram or Facebook.”

Spiceology has expanded organic content on Facebook, Instagram and TikTok, McLean said. On those platforms, consumers show what they made for dinner using its seasonings. Online, the brand can explain flavor profiles and show recipes with more detail than a package can carry. Shoppers in a hurry have only seconds to absorb a label in the aisle, she said.

McLean said younger consumers are comfortable buying this way. She said the brand can communicate more deeply with richer, more durable messages when shoppers discover it on TikTok than when they see only a label in the aisle.

McLean's model treats TikTok as a way to win shoppers before they reach the store.

How is TikTok Shop changing Spiceology's customer acquisition?

Spiceology sells on TikTok Shop because it believes consumers spend their time discovering products there, McLean said. The brand uses advertising and influencer partnerships to produce content.

TikTok Shop receives its own budget without reducing spending in other channels, McLean said. She described the push as giving the platform more momentum and removing friction for consumers.

Creator participation fluctuates with campaigns. Spiceology currently works with about 35 microinfluencers, McLean said. Their content drives consumers to stores to buy Spiceology products, she said. McLean can see the impact by region but did not disclose further detail.

For 2026, McLean's prescription is to keep both grocery and direct-to-consumer channels open, because their pricing profiles are similar even though the routes to market differ.