{"id":11184,"date":"2022-07-19T07:00:00","date_gmt":"2022-07-19T15:00:00","guid":{"rendered":"https:\/\/www.rangeme.com\/blog\/?p=11184"},"modified":"2022-07-19T06:51:12","modified_gmt":"2022-07-19T14:51:12","slug":"innovative-incubator-programs-are-driving-success-for-small-brands","status":"publish","type":"post","link":"https:\/\/www.rangeme.com\/blog\/innovative-incubator-programs-are-driving-success-for-small-brands\/","title":{"rendered":"Innovative Incubator Programs are Driving Success for Small Brands"},"content":{"rendered":"\n

Between 2017 and 2019, large brands in the U.S. lost volume at a rate of 1.5% a year, while small brands grew 1.7%, according to a report<\/a> from management consulting firm McKinsey & Company.<\/p>\n\n\n\n

The time for small brands is now. Consumers are frequently turning their backs on mainstream companies and looking at what small brands have to offer.  Many of the rising small brands are those that are tapping into the trends consumers want, from healthier products (either for humans or the environment); to a mission that resonates with consumers, such as donating a percentage of profits; transparency with their backstory and mission that builds consumer trust; to fun labeling that\u2019s hard to resist.<\/p>\n\n\n\n

Tail-wagging ethos<\/strong><\/h2>\n\n\n\n
\"Denzel's
Source: Denzel’s<\/figcaption><\/figure><\/div>\n\n\n\n

Take, for example, London, U.K.-based Denzel\u2019s, which features a different pup on every variety of its soft-baked dog chews, almost begging consumers to buy them. I\u2019m tempted, and I have a cat.<\/p>\n\n\n\n

The treats deliver, too. They\u2019re made with fresh fruit, healthy fats, antioxidants, and fiber; only natural ingredients; and the packaging is 100% plastic-free and biodegrades in weeks. If that\u2019s not enough, Denzel\u2019s promises to plant one tree for every order placed and to use no palm oil. <\/p>\n\n\n\n

Dogs might like what\u2019s inside the packaging, but humans \u2014 especially Millennials and Gen Z \u2014 like what these products stand for.<\/p>\n\n\n\n

Incubator brand support<\/strong><\/h2>\n\n\n\n

Denzel\u2019s was selected in April 2022 as one of six small brands for U.K. retailer Tesco\u2019s Incubator Programme. The Incubator Programme began in 2017 and has introduced brands every year since then. <\/p>\n\n\n\n

\"Christina<\/figure><\/div>\n\n\n\n

\u201cWe\u2019re committed to supporting small suppliers,\u201d says Christina Bridstrup, Incubator Programme lead. \u201cWe are also aware that customers are increasingly looking for smaller, authentic, natural, and local products. Introducing the program was a way that we could support small brands whilst tapping into this mindset to be more innovative, different, and relevant.\u201d<\/p>\n\n\n\n

To be selected, suppliers must have been in Tesco stores for at least six months, and the retailer looks for  \u201cbrands that are genuinely small, offer real innovation, fulfill a genuine customer need, and fit in with our category strategy,\u201d Bridstrup explains.<\/p>\n\n\n\n

And while Tesco wants the brands to have some know-how, understand their customer, and have a clear idea of what they offer to them, Tesco also helps educate them through learning events \u201cwhere they can meet and hear from people from the key Tesco stakeholder groups they work with, listening sessions with senior leadership, and additional time and support from their category teams,\u201d says Bridstrup. \u201cWe can help them with customer insight, and they can also benefit from the network of current and past incubator brands.\u201d<\/p>\n\n\n\n

Clear positioning<\/strong><\/h2>\n\n\n\n

ACTiVIT flavored sparkling water with vitamins from ACTiPH, is another brand selected this year in Tesco\u2019s Incubator Programme. Just three weeks into the program, Nicholas Ross, ACTiPH\u2019s CEO, says he\u2019s already \u201cseen a great deal of support \u2026 It\u2019s going to be a massive support to us in the wider market as we continue to build awareness and trial with Tesco customers,\u201d he explains.<\/p>\n\n\n\n

\"ACTiVIT<\/figure><\/div>\n\n\n\n

\u201cWe\u2019re seeing many more niche brands with a wider distribution,\u201d says Kyle Hildebrant, principal partner of OVO<\/a>, a Portland, Oregon-based branding agency, who adds that local brands are also gaining traction. <\/p>\n\n\n\n

But these companies have to offer something new, he points out. \u201cFor the David-sized brand to have any chance against the Goliathan will require strong, differentiated positioning and a compelling brand identity. Take Ben & Jerry\u2019s ice cream. What started as a small, niche, brand has grown to a powerhouse, primarily due to clearly articulated positioning.\u201d<\/p>\n\n\n\n

Indie retailer focus<\/strong><\/h2>\n\n\n\n

Small, independent retailers are also doing their part to introduce small brands. Canyon Market in San Francisco is always adding new products by small, local brands.<\/p>\n\n\n\n

Customers love these products, but it\u2019s a lot of work, says owner Richard Tarlov. \u201cMore invoices, more deliveries coming to the loading dock, sometimes having to help these folks along,\u201d he notes.<\/p>\n\n\n\n

Tarlov\u2019s open to most new products, though admits shelf space is tight. Sometimes he removes low-performing SKUs to make room. \u201cIt\u2019s a constant puzzle, fitting pieces together,\u201d he explains. The items he does bring in, he learns about through various means: trade shows, direct pitches from suppliers, or customer requests. <\/p>\n\n\n\n

But what particularly draws his attention is unusual products. He\u2019s about to introduce a new spice \u2013 a pimento pepper powder \u2013 from Northern California. \u201cIt\u2019s local, it\u2019s functional, it\u2019s different, and it\u2019s got a story.\u201d<\/p>\n\n\n\n

He\u2019s interested in the company, too. \u201cIt\u2019s important that the company have all their ducks in a row \u2013 what does it cost, what does it cost to ship it, does it have distribution, what is the package like, and does it work for us, fit on our shelves, does it stack? All that is important.\u201d <\/p>\n\n\n\n

Tarlov also wants an assurance that the company\u2019s able to follow through on its commitments. \u201cWe like to see the entrepreneurial zeal behind it. We don\u2019t want them to ship it once or twice then disappear. We want to see that and know they\u2019re going to be around in a year.\u201d<\/p>\n\n\n\n

All small brands hope they\u2019ll be around in a year, even more if retailers follow Tarlov\u2019s and Tesco\u2019s examples.<\/p>\n\n\n\n

Do you follow us on TikTok<\/a> yet? Get insight into unique trends, trade shows, best practices, and so much more!<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Learn how global retailers like Tesco are creating incubator programs to help emerging small businesses navigate the retail world. <\/p>\n","protected":false},"author":69,"featured_media":11192,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[481],"tags":[38,471,1794,37,3183,28,2653,3185,3186,36,3184,30,32,44,1859,27,3114,26,2238],"class_list":["post-11184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-trends","tag-consumer-goods","tag-consumer-packaged-goods","tag-consumer-trust","tag-cpg","tag-denzels","tag-entrepreneurship","tag-gen-z","tag-incubator-programs","tag-indie-retailers","tag-innovation","tag-millenials","tag-rangeme","tag-retail","tag-retail-trends","tag-shop-small","tag-small-business","tag-small-businesses","tag-supplier","tag-tesco"],"yoast_head":"\nInnovative Incubator Programs are Driving Success for Small Brands - 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