In 2024, the retail landscape has witnessed a marked shift with a surge in supermarket brand accelerator schemes. Major players, including Tesco, Iceland, Co-op, Ocado, and Waitrose, have unveiled initiatives to foster start-up growth, blending financial support with invaluable market exposure.
The sudden expansion of brand accelerator schemes by UK supermarkets might appear unexpected, but it aligns with their strategic goals to harness innovation. Joel Wallington, CEO of CoCubed, observes that supermarkets are keenly focusing on start-ups, not just to boost sales but to differentiate themselves in a competitive market. Start-ups like Deliciously Ella and Tony Chocolonely exemplify success by resonating with consumer trends, such as healthy eating and social impact, and supermarkets aim to replicate these achievements.
There is a strategic advantage for supermarkets to integrate start-ups as these brands are agile and closely aligned with shifting consumer preferences. Wallington highlights that start-ups possess an innate ability to quickly adapt and preempt market trends, offering supermarkets a path to stay ahead. They also introduce untapped potential into traditional categories, as seen with Tony Chocolonely’s ethical chocolate or Deliciously Ella’s focus on non-processed foods.
The Iceland ‘Brands on Ice’ scheme introduces a quarterly accelerator aimed at both new and established brands, providing substantial investment and comprehensive support ranging from online presence to in-store promotion. Similarly, Waitrose’s initiative seeks to identify burgeoning FMCG brands, offering a significant investment pool alongside expert consultancy and confirmed retail space, ensuring a calculated approach to brand growth.
Co-op’s ‘Apiary’ programme, leveraging its success with diversity and inclusivity in procurement, intends to nurture new suppliers by providing networking opportunities and access to masterclasses. Meanwhile, Tesco’s bi-annual programme has shifted focus to smaller, trend-led brands promoting health, sustainability, and community engagement, thus catering to evolving consumer demands.
Ocado’s ‘Treasury of Innovation’ initiative is specifically crafted to support 100 small suppliers annually. By providing streamlined onboarding processes and rigorous mentorship, Ocado aims to facilitate market entry and growth for emerging brands, further amplified by free access to valuable consumer insights through its Beet analytics tool.
Wallington advises brands to scrutinise a scheme’s historical success and potential alignment with brand values before commitment. He notes that financial backing often comes with strings attached, particularly when involving equity stakes. Importantly, accelerator schemes must offer direct access to vital resources, which can prove more beneficial than immediate financial gain. Supermarkets sit on vast consumer data reservoirs, a tool that start-ups can leverage to refine and test their product propositions.
The evolution of these schemes must keep pace with the growing influence of financially empowered start-ups. Wallington urges supermarkets to transition from cohort-based models to continuous innovation streams and to embed sustainability into their initiatives. Supermarkets must demonstrate genuine collaboration intentions to maximise the mutual benefits of these partnerships.
In the evolving retail sector, brand accelerator schemes have emerged as crucial platforms for growth and innovation. With supermarkets actively engaging with start-ups, these programmes offer a fertile ground for emerging brands to establish themselves in the market. As both parties continue to redefine these partnerships, the emphasis remains on collaboration and strategic alignment to meet the demands of the modern consumer.
