Sainsbury’s offers small brands a listing

LONDEN - In July British retailer Sainsbury’s launched ‘Taste of the Future’, a project to give small, distinctive but unknown brands a shelf position. It’s a way for the retailer to differentiate herself from the other ‘big 4’, to strengthen the relationship with her existing customers as well as attract new shoppers. So, what makes this concept attractive for ‘up-and-coming’ brands and how does it work?

In 69 selected superstores in and around London Taste of the Future incubators are placed, bays filled with 30 sku’s from 11 small challenger brands. Every 14 weeks the shelf is updated and new brands are launched. The products are from premium brands like Beavertow Brewery and Wasabi. In general, brand owners are enthusiastic. They get more support from the retailer than usual, sometimes even free data and there is less pressure on sales figures. Of course, product rotation is important, but it’s not the only criterium for the ‘Future team’. Feedback of consumer panels, the ability to attract new shoppers, it is all important and is being judged in exchange for exclusivity.

Exclusivity is not attractive for all brands. After all, the whole project is about ‘only’ 69 stores which makes a general communication plan impossible and limits the short-term growth options at other banners. On the other hand, it offers a platform to generate awareness in a specific market area and with online promotions and geo-targeted social media you can reach a large group of fans.

A way for smaller Dutch food companies to explore their foreign opportunities is to participate in the subsidized Starters International Business (SIB) project that is launched by the Dutch government. Specifically for food entrepreneurs, the advisors of TEN the export network give support on your export plans. An example of a SIB candidate is Amsterdam based sausage company Brandt & Levie. Together we positioned the company in an international context, selected specific target markets and investigated all the necessary topics to start up export. Listen to the story of Brandt & Levie entrepreneur Geert van Wersch at https://theexportnetwork.nl/partners/foodondernemers-in-beeld/ (in Dutch), read more about SIB at https://theexportnetwork.nl/sib-subsidie/ or contact us: http://www.theexportnetwork.nl/contact/.

Source: The Grocer, July 2019