Managing the categories in each individual list is easier than ever in the iOS version of Out of Milk. Check out this quick GIF - after clicking on Manage Categories in the drop-down menu shown, you will see the categories in use in that list. You can then use manual drag and drop to change the order in which they appear on that list. Note that in iOS, the categories in each list are ordered on an individual basis - there is no global setting for category order.
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