Five grocery heavyweights, including UK supermarket giant Tesco and Australia’s Woolworths, have joined forces with Ahold Delhaize, Empire Company/Sobeys, and Shoprite to establish a new $125m investment fund, W23 Global. The aim of this venture fund is to accelerate innovation across the retail sector. Each partner will contribute $25m over a five-year period.
W23 Global will focus on investing in the world’s most innovative start-ups and scale-ups that have the potential to transform grocery retail. These companies will use technology to enhance customer experiences both in-store and online, increase productivity across the grocery value chain, and address sustainability challenges in the industry, such as biodiversity in agriculture and sustainable packaging.
The fund will be overseen by each retailer’s CEO, who will sit on the investment committee. Portfolio companies will have the flexibility to engage with any customer on their own terms.
The fund builds upon Woolworths’ existing venture-capital fund, W23 Australia, which has supported businesses like Marley Spoon and All G Foods. Led by Ingrid Maes, a veteran in FMCG and grocery retail, W23 Global will be based in the UK. Maes emphasizes the fund’s goal of offering investors unparalleled access to transformative innovation in grocery and sustainability globally.
W23 Global aims to identify common challenges and support entrepreneurs in developing innovative solutions. With grocery CEOs on the investment committee, the fund provides a platform for founders to test and scale their ideas faster. Tesco Group CEO Ken Murphy highlights the partnership’s focus on seeking retail innovations and promoting sustainability on a global scale.
The collaboration with leading grocery retailers underscores the commitment to driving impactful change in the food and beverage industry trends. The emphasis on sustainability and innovation is crucial for staying competitive in the food and drink business landscape. By investing in start-ups that can revolutionize grocery retail, these companies are positioning themselves for long-term success in the evolving food and drink consumer trends.
