Friday, 23 August 2024, Bengaluru, India
Woolworths has reiterated its support for incubation and innovation by increasing investment in Seedlab Australia, a food and drink incubator, by $7 million. This move follows the $4 million investment that Woolworths made in Seedlab during the early months of 2021. It can be seen that Seedlab’s reach is also broad in terms of populations and groups. Of bootcamp participants, 66% are women-led businesses, while Cultivate participants, 74% are women-led businesses. This program has assisted in funding over 27 First Nations business ventures.
Vision of Seedlab
Seedlab Australia is founded by Dr. Hazel MacTavish-West. It has helped create new products in nearly 400 businesses. It only targets foods with added value, non-alcoholic beverages, and personal and home care products that are environmentally friendly. Thanks to this new round of funding, Seedlab has the potential to expand its operations and offer even more value to startups throughout Australia and New Zealand.
Woolworths’ Involvement
Woolworths does not only fund the work but actively participates in it. Walmart employs Seedlab participants actively to help them clarify some unique processes involved in pitching ideas and providing products to mass merchandisers. Together, more than 100 first-tier suppliers have committed a total of $26 million in their businesses, have increased their manufacturing capacities by 210 percent, and provided 140 new FTE jobs to people.
Benefit of Woolworths from its investment in Seedlab
Supporting Seedlab, Woolworths participates in creating an innovative environment. This investment enables Woolworths to access new concepts, innovations, and new products within the market that respond to customer needs. Woolworths is being provided with a supply of new foods and drinks that the innovators are developing.
Numerous Seedlab participants create things that could be complementary to Woolworths’ current product portfolio and appeal to clients interested in exclusive experiences. Seedlab’s selection continues to build on Woolworths’ proven supplier diversity efforts. Thus, by supporting small businesses and local entrepreneurs, especially in W&E and First Nations, Woolworth incorporates more suppliers and ensures its economically inclusive model.
Such sponsorship gives Woolworths a good brand image because it supports Seedlab, as discussed below. Customers like it when a firm supports local communities and starts and embraces sustainability initiatives. This positive perception may lead to customer loyalty.
Thus, cooperation with Seedlab allows Woolworths to establish a professional and long-term collaboration with potential startups. These affiliations can create unique products that are difficult for any company to offer on its own and co-branding and shared growth. Thus, Seedlab investment is not only beneficial to Woolworths from a financial perspective, but it also helps the company to enhance its standings as a progressive and socially responsible player in the industry.
Bootcamp and Cultivate Accelerator
A retail readiness checklist that takes approximately six weeks to complete allows business owners to gauge their preparedness for entry into the retail market. The participants were provided with knowledge on how to pitch to and interface with national supermarkets, including Woolworths. The predicted average additional value for Bootcamp graduates is $13.2 million over three years. It offers founders one-on-one coaching, leadership sessions, marketing advice, and routes to become valued supermarket suppliers. Here, the alumni businesses are venturing into launching new products into Woolworths.
Conclusion
Woolworths remains committed to supporting innovation and encouraging small businesses through Seedlab Australia’s investment. The success stories reflected in the show prove the possibility of cooperation between large retail chains and young startups.
