Australian supermarket chain Woolworths plans to invest an additional A$7 million (approximately US$4.75 million) into its food and beverage startup accelerator, Seedlab, over the next three years. This initiative aligns with the growing trends in the food and beverage industry, as the sector continues to evolve towards more sustainable and health-conscious offerings.
The Seedlab program serves a critical role by identifying businesses poised for growth in high-demand markets, including artisan foods, wellness products, and sustainable solutions. Since its inception in 2021, Woolworths has actively supported Seedlab, and this new funding comes as the program embarks on its latest round with over 50 emerging businesses from Australia and New Zealand.
Dr. Hazel MacTavish-West, CEO and co-founder of Seedlab Australia, emphasized the transformative impact of Woolworths’ commitment, stating: “This three-year commitment from Woolworths will be a game-changer for over 500 small business founders in Australia and New Zealand who will benefit from extra support to take their business to the next level.”
The collaboration has already yielded impressive results. According to Dr. MacTavish-West, participants have collectively injected A$26 million into their operations, achieving a production increase of more than 210% and creating 140 new jobs. Furthermore, Seedlab’s 2024 Outcomes and Impact Report anticipates that businesses completing its program will have an overall market value exceeding A$61 million within the next year.
Woolworths Chief Commercial Officer, Paul Harker, reinforced the importance of this initiative: “Partnering with Seedlab, we’re able to help give small businesses a crash course in supermarket retail and invest to help them grow.” He noted that over 400 businesses have benefitted from the program, with many now featuring their products on Woolworths’ shelves.
Investment in small enterprises is vital for advancing a dynamic local food and manufacturing landscape. Harker expressed excitement over working with businesses like Spicecraft as part of this initiative, highlighting the positive impact they have on the community and the food and drink business.
In a broader context, in April, Woolworths, alongside four other major grocery players, joined forces to establish W23 Global, a new investment fund worth $125 million aimed at fostering innovation within the retail sector. Collaborators in this fund include Tesco, Ahold Delhaize, Empire/Sobeys, and Shoprite. This collaborative effort underscores the importance of supporting startups and leveraging the latest food and drink consumer trends to facilitate growth across the industry landscape.
Given the rapid changes in consumer preferences and trends within the food and beverage industry, Woolworths’ strategic investment is not only timely but also essential for strengthening its market presence and enhancing its product offerings.
