In 2024, the landscape for start-up brands looking to expand their market presence is rich with opportunities, thanks to a surge in supermarket brand accelerator schemes. This influx, seen with launches from major retailers like Tesco, Iceland, Co-op, Ocado, and Waitrose, reflects an evolving strategy where supermarkets aim to fuel their growth through partnerships with dynamic start-ups. Each scheme offers unique advantages, from financial backing to comprehensive expert support, allowing brands to find the perfect match for their expansion ambitions. However, differences in schemes suggest that brands need careful consideration in choosing the right fit.
Joel Wallington, CEO of CoCubed, illustrates how supermarkets are increasingly leveraging start-ups to stay competitive. This focus is driven by the ability of start-ups to tap into shifting consumer behaviours quickly and introduce fresh, innovative products that differentiate supermarket offerings. Wallington notes the success stories of brands like Deliciously Ella and Tony Chocolonely, highlighting the potential for high-value collaborations that extend beyond traditional product categories.
Iceland, known for its frozen goods, is diversifying through its ‘Brands on Ice’ scheme, encouraging both challenger and established brands to pitch novel ideas. The initiative offers up to £100,000 in investment, support in packaging and design, and enhanced customer performance strategies. Recent successes include launches from Britvic and Müller.
Waitrose, on the other hand, launched ‘BrandsNew’, focusing on emerging FMCG brands. Offering a £2 million initial investment, the programme supports brands with shelf space and marketing activities, aiming to replicate previous exclusive successes.
Co-op’s ‘Apiary’ accelerates diversity and inclusivity among suppliers. With masterclasses and networking opportunities, the scheme recently integrated ten innovative suppliers, such as Bio & Me and TrueStart Coffee, into their product lines.
Tesco’s bi-annual Accelerator Programme nurtures small, trend-led brands emphasising health and sustainability. Its initiatives involve mentoring and development resources, fostering brands like Nala’s Baby and The Gym Kitchen.
Meanwhile, Ocado’s ‘Roots’ programme caters to new suppliers, providing extensive onboarding and industry support, aiming to bring emerging brands into the spotlight through its digital platform.
Wallington advises that one must carefully consider the focus and track record of these schemes before applying. While financial incentives are attractive, brands should weigh long-term strategic implications of partnering with a single retailer. Additionally, access to supermarkets’ data resources provides invaluable insights into consumer behaviour, aiding in product development and testing.
The evolving nature of these schemes reflects a shift in market dynamics, where well-funded start-ups have more options and creativity at their disposal. For supermarkets, this means evolving their approaches to truly collaborate with start-ups, potentially moving away from traditional cohort structures towards continuous innovation streams.
In conclusion, the rise of supermarket brand accelerator schemes in 2024 offers a strategic avenue for start-ups to grow and innovate. Each scheme presents distinct opportunities, from financial backing to market exposure, making it crucial for brands to assess which programme aligns best with their objectives. As these schemes evolve, they represent a pivotal shift in how supermarkets engage with emerging brands, ultimately enhancing consumer choice and market diversity.
