Woolies doubles down on product accelerator Seedlab with another $7 million

Retail giant Woolworths is obviously impressed with the products rolling out of food and drink startup incubator, Seedlab Australia, tipping another $7 million into the project.

Woolies previously invested $4 million in Seedlab when it kicked off in 2021, supporting nearly 400 businesses develop new products over that time.

Seedlab Australia CEO and cofounder Dr Hazel MacTavish-West said the additional three years of funding will extend the program’s reach and impact, to create more value-added foods, non-alcoholic beverages, and more sustainable personal and home care products. 

“We are thrilled that Woolworths continues to see the immense value in our program. This three-year commitment is a game-changer for approximately 500 business founders across Australia and New Zealand,” she said.

“The support from Woolworths has been more than financial; their team has actively helped demystify the complex processes involved in pitching to, and supplying the major retailer.

“Together we have deconstructed the processes for pitching to, supplying into and working with national supermarkets and specialty retailers for our participants, which has already seen over 100 small suppliers cumulatively invest $26 million into their businesses, expand their production by over 210%, and create 140 new FTE (full-time equivalent) jobs.”

Businesses that completed Seedlab programs are estimated to have a cumulative perceived business value of over $61m in the next 12 months.

Its Bootcamp and Cultivate programs are designed to educate entrepreneurs in the FMCG (fast-moving consumer goods) sector, including marketing and pitching to Woolworths category managers. 

The 6-week Bootcamp program is designed to equip business owners with information to benchmark their retail readiness, while the new five-month long Cultivate accelerator program builds on it, giving founders 1:1 mentoring, leadership and marketing modules, and guidance in becoming a more valuable supermarket supplier.

MacTavish-West said Bootcamp participants predicted an average additional value of $13.2 million over 3 years collectively; and an increasing number of new products are being launched into Woolworths by alumni businesses.

The 2024 Outcomes and Impact Report reveals that 66% of Bootcamp participants and 74% of Cultivate participants were women-led businesses; and the program has supported over 27 First Nations businesses.

Woolworths chief commercial officer, Paul Harker said existing small suppliers to Woolworths will also benefit from Seedlab programs.

“Any new small business, as defined by the Small Business Identification tool and supplying value added products to us, will be offered a place in the Seedlab program,” he said.

“This means that not only do they receive support from our Woolworths team, but they will have full access to Seedlab resources to help set them up for success in their first year of supplying Woolworths.”