In 2024, start-up brands have many supermarket accelerator schemes to choose from to help them grow at pace.

This year alone, five supermarkets have launched new brand accelerator schemes, with three just within recent months: Tesco, Iceland, Co-op, Ocado and Waitrose.

The schemes vary in duration and frequency, but all offer opportunities for brands, ranging from financial investment and a chance to be listed in-store and online, to expert support and advice to maximise their growth. However, a closer look shows that each scheme varies, and are aimed at different types of brands.

Not only does this give brands options to find an accelerator scheme that is right for them, it also adds competition for grocery retailers leading to added incentives being launched.

We caught up with innovation consultancy CoCubed CEO Joel Wallington to find out what makes a good brand accelerator scheme, what FMCGs should be looking for, and what supermarkets can do to make sure their scheme is the best on the market.

The sudden influx of UK supermarket brand accelerator schemes is “unsurprising”, says Wallington.

“Supermarkets are turning to innovative start-ups to drive growth,” he explains. “They are looking to see how they can stand out against one another. And I think that an answer a lot of them have arrived at is start-ups.”

Wallington points out how relative newcomers such as Deliciously Ella, Pip & Nut and Tony Chocolonely had had great success and supermarkets are trying to find the next big thing to drive sales.

“Start-ups offer supermarkets high value, and two factors are driving this. First is start-ups close proximity to changing consumer behaviours and needs – they are much closer to the market and can move faster, adjust, anticipate trends, and build authentic connections with their customers.”

“Second is the ability to unlock untapped value in traditional products,” Wallington adds. T

his can be seen with brands like Tony Chocolonely, which has marketed itself as not simply a chocolate brand, but also an FMCG with a positive social impact, or Deliciously Ella that champions healthy, non ultra processed food (UPF) diets.

“There have now been enough examples of what were start-up brands doing very niche things growing now into very significant revenue streams for these supermarkets, and also an ability to differentiate themselves.”

The new quarterly brand accelerator scheme was launched earlier this year with the second cohort due to showcase their products to a team of Iceland buyers and executives this month.

It comes as Iceland aims to expand beyond its traditional frozen categories, in a move to broaden the appeal to shoppers and change consumer perception of the grocer from a frozen specialist to a full-range supermarket.

Launched last month, led by its in-house Branded Innovation team, and supported by product discovery platform RangeMe and innovation consultancy YF.

The scheme also offers affordable marketing support across all channels, including experiential moments such as store tastings, online sampling, presence at events such as Waitrose Food and Drinks Festival, as well as performance data and analysis, and clear expectations.

Following the success of its Apiary incubator programme for suppliers, Co-op launched a brand accelerator to further promote range diversity and supplier inclusivity. Six new suppliers are set to hit Co-op shelves this month following its search for a fresh wave of food and drink businesses, with brands set to be stocked in more than 100 of the convenience retailer’s stores.

This includes diverse-owned brands Aagrah, Better Nature Tempeh, Jake & Nayn’s, Superfoodio and Wha Gwan, and women-owned brands Bold Bean Co, Fearne & Rosie, Piccolo, Seep and The Gut Stuff.

Other benefits include “simplified ways of working”, “clear guidelines and expectations, with well-defined milestones to help measure success” and guidance from mentoring by larger challenger brands, such as: TrueStart Coffee, Biotiful, When in Rome, Love Corn, Borough Broth, Miniml, Piccolo, The Jolly Hog, Bold Bean Co, All Plants and Fuel 10k.

Wallington says different accelerator schemes will appeal to different brands.

Brands should find out what the focus of the programme before applying to the scheme, he says. For example, Iceland’s scheme focuses on  not just new but established brands and has recently supported the launch of FMCG giant Britvic’s cherry Tango soft drink in a bid to bring back an old product to consumers.

Whereas Waitrose and Ocado;s schemes are focusing solely on new brands.

Wallington also recommends looking at a scheme’s track record, and exploring what has happened to the brands who previously went through the scheme.

“There’s a big difference between talk and action…I would really interrogate the website, the media that’s around the accelerators, what people within the organisations are saying on LinkedIn, to try and gauge what is some of the underlying motivations here, and get a sense of whether the scheme is going to be a really long-term and in-depth benefit?”

The issue, Wallington says, is that brand accelerator schemes are difficult to deliver and maintain long-lasting impact for both parties.

Even incentives like a financial investment can have its draw backs, he says.

“I wouldn’t see that as a blank check, and consider the long-term implications of having a single supermarket on your cap table, and whether that’s a strategic advantage or a disadvantage for you. No money is free,” Wallington says.

However, one universal that all accelerator schemes should have is giving brands access to resources such as sponsors and experts in the field who can provide industry advice and also data, whether anonymous or customer. Data can give insights for brands testing new flavours, or preparing to extend and diversify their product line.

“Supermarkets are sitting on huge amounts of data, which, for a start-up is just a huge opportunity to stress test their hypothesis and value propositions, to really understand consumer behaviours and have access to a whole load of insights that they wouldn’t otherwise.”

Wallington says supermarkets should look to evolve brand accelerator schemes to match how both consumers and brands are changing.

“There’s been a huge shift in the power dynamics of the start-up and corporate world, and start-ups are now better funded, have more options, have more creativity. There’s a big job on the supermarkets to get this right, and show that they are not doing this for their own gain, but to genuinely collaborate and bring better products to customers.”

He recommends supermarkets axe the cohort system in favour of a “continuous stream of innovations” and introducing schemes that have a sustainability focus.

“How [the supermarket schemes] will evolve will be shaped by how they perform and the value that they deliver to both supermarket and start-up brands involved.”