Australian grocer Woolworths is set to invest an additional A$7m (US$4.75m) in its food and beverage start-up accelerator Seedlab over the next three years.
The Seedlab programme helps identify businesses with the potential to scale in “high growth categories such as artisan foods, health and wellness, and more sustainable products”, according to a statement.
Woolworths has supported Seedlab since 2021. The new funding comes as Seedlab starts the latest round of its accelerator with over 50 small Australian and New Zealand businesses.
Seedlab Australia’s CEO and co-founder Dr Hazel MacTavish-West said: “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.
“Together we have deconstructed the processes for pitching to, supplying into and working with national supermarkets and specialty retailers for our participants. We have already seen over 100 small suppliers cumulatively invest A$26m into their businesses, expand their production by over 210%, and create 140 new jobs.”
According to Seedlab’s 2024 Outcomes and Impact Report, companies completing Seedlab Australia’s programmes are expected to have a total business value of over A$61m within the next year.
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Woolworths chief commercial officer Paul Harker said: “Partnering with Seedlab, we’re able to help give small businesses a crash course in supermarket retail and invest to help them grow.”
Harker said more than 400 businesses had gone through the scheme, “with some now stocked on our shelves and available to our customers to enjoy”.
He added: “Investing in small businesses is crucial to a flourishing local food and manufacturing industry, and we’re excited to continue to work with small businesses like Spicecraft, and to see them thrive in our stores.”
In April, Woolworths was among five grocery heavyweights to sign up to a new $125m investment fund to back start-ups.
It joined forces with Tesco, Ahold Delhaize, Empire Company/Sobeys and Shoprite to establish the venture fund W23 Global with an aim of accelerating innovation across retail.
