As supermarkets increasingly turn to brand accelerator schemes, start-ups gain diverse opportunities to expand rapidly.
- Five major supermarkets, including Tesco and Iceland, launched new schemes for start-ups in 2024.
- These initiatives offer financial investment, retail listing, and expert guidance for brand growth.
- Different schemes cater to various brand types, fostering competition among supermarkets.
- CoCubed CEO Joel Wallington discusses the benefits and challenges of these initiatives.
In 2024, supermarkets have significantly increased their involvement with brand accelerator schemes, offering start-ups numerous opportunities for swift expansion. Five supermarkets, including Tesco, Iceland, Co-op, Ocado, and Waitrose, have launched new schemes, three of which have debuted in recent months. These programs provide a range of benefits, including financial investment, listings both online and in physical stores, and expert support to enhance brand growth. However, these schemes differ in duration and target different brand profiles, allowing companies to select the one that aligns with their needs while also heightening competition among retailers.
The rush to implement brand accelerator schemes is largely unsurprising. According to CoCubed CEO Joel Wallington, supermarkets are harnessing the innovative capabilities of start-ups to propel their growth. Wallington identifies start-ups’ proximity to evolving consumer behaviors and needs, along with their knack for discovering untapped potential in traditional products, as key assets. The market’s desire for brands with authentic customer connections is being fulfilled by emerging companies like Deliciously Ella and Tony Chocolonely, noted for their health and socially responsible appeals.
Iceland’s brand accelerator scheme, “Brands on Ice,” launched earlier this year with an innovative quarterly format. It enables both established and challenger brands to present new products to Iceland’s buyers with a chance to receive up to £100,000 in investments. The effort to redefine Iceland from a frozen specialist to a comprehensive grocery store is evident in their aim to attract a broader consumer base.
Waitrose’s initiative, “BrandsNew,” launched last month, is focused on introducing new FMCG brands and offers a hefty initial investment of £2 million. The scheme provides tailored support from Waitrose’s innovation teams and allocates retail space for participating brands. The intent is to boost FMCGs with expert advice and meaningful market exposure.
Meanwhile, Co-op’s “Apiary” scheme, following its successful incubator program, aims to enhance supplier diversity. It supports new and existing suppliers by offering learning opportunities and buyer support, culminating in shelf placements in over 100 stores. This accelerator is designed to nurture brands that embody entrepreneurial spirit and inclusivity.
Tesco, with its revamped Accelerator Program, focuses on fostering small and trend-driven brands by integrating them into its retail ecosystem. This program offers crucial mentoring and development opportunities. In contrast, Ocado’s “Ocado Roots” caters to small suppliers seeking industry-leading support and offers a generous package for rapid brand acceleration.
Wallington advises that the success of a brand accelerator scheme is contingent on its alignment with the brand’s needs and its track record of benefiting past participants. He notes that these programs should leverage supermarkets’ extensive data resources to provide invaluable insights for developing brand strategies. In essence, supermarkets must iteratively adapt their schemes to the dynamic landscape of consumer preferences and brand innovation.
Supermarket brand accelerator schemes must evolve continuously to meet the changing needs of brands and consumers.
