In 2024, supermarkets embraced brand accelerator schemes to harness growth opportunities with start-ups.
- Five major UK supermarkets—Tesco, Iceland, Co-op, Ocado, and Waitrose—have launched new schemes this year alone.
- These programmes range from financial aid and mentorship to in-store and online presence, varying in focus by brand type.
- Notable success stories include brands like Tony Chocolonely, Deliciously Ella, and Pip & Nut driving significant revenues.
- The schemes also reflect supermarkets’ competition to distinguish themselves by spotting the next big start-up success.
In the landscape of 2024, supermarkets have turned their attention to start-up brands as a means to drive growth and innovation. With five new brand accelerator schemes introduced, prominent chains like Tesco, Iceland, Co-op, Ocado, and Waitrose are offering different paths for brands to enter the market. These programmes offer a range of benefits, including financial investments, expert advice, and visibility both online and in physical stores.
Iceland’s scheme, ‘Brands on Ice,’ is designed to allow both new and established brands to present innovative ideas, providing successful participants with investments up to £100,000. The initiative includes comprehensive support in web design, packaging, and social media activation. Iceland has featured products from brands like Britvic, Müller, and Happy Egg, aligning itself to evolve beyond being known just as a frozen food specialist.
Waitrose’s ‘BrandsNew,’ launched with an investment of £2 million, focuses on supporting new FMCG brands with a tailored package that includes time with their Branded Innovation team and confirmed shelf space. This scheme differentiates itself by offering brands marketing support across channels and access to data for performance analysis, though it is yet to showcase success stories due to its recent launch.
Co-op’s ‘Apiary’ aims to embrace the entrepreneurial spirit by supporting both new and existing suppliers, offering opportunities such as mentor networking and masterclasses. Their efforts focus on diversity and inclusivity, with the inaugural wave including brands like Bio & Me and The Jolly Hog. Co-op’s community-driven approach enables smaller brands to flourish in a supportive environment.
Tesco’s programme seeks to cater to small, trend-led brands by aligning with emerging products in health and sustainability. Through a comprehensive programme of mentoring, Tesco provides access to stores and online platforms, looking to foster brands that contribute back to their communities. Participants have included Nala’s Baby and Love Raw.
Ocado’s ‘Ocado Roots’ focuses on small suppliers and offers a unique ‘purple carpet treatment,’ facilitating growth through bespoke onboarding and access to fast payment terms. Although new, Ocado draws on its partnership with IND!E, providing smaller brands a significant platform without requiring them to be listed in a major supermarket.
The common thread across these initiatives is the reliance on start-ups to navigate and adapt to evolving consumer needs. CEO of CoCubed, Joel Wallington, highlights start-ups’ proximity to changes in consumer behaviour as a key asset, allowing supermarkets to capitalise on trends and untapped value in traditional products.
However, Wallington also notes that not all accelerators are equal in their long-term benefits, and brands must carefully assess schemes before committing. Access to data and resources is crucial in enhancing a start-up’s potential, offering important insights that could be pivotal in developing strategies aligned with consumer preferences.
Supermarkets are strategically partnering with start-ups through accelerator schemes to foster innovation and differentiate themselves in a competitive market.
