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How Food Giants Like Whole Foods and DoorDash Find Innovative Brands by Running Accelerators

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 Several Chowe brand empanadas are shown artfully arranged on a plate adorned with two toothpicks representing the Columbian flag. In the background are two coffee cups imprinted with

Chowé Empanadas received a significant boost from DoorDash’s accelerator, which launched in 2001. DoorDash provides mentoring and a $5,000 grant to selected applicants. — DoorDash

Why it matters:

  • In an increasingly competitive business climate, food retailers are ramping up ways to source new brands that diversify their product selection.
  • Brands often have a great product but are underprepared for how to do business in the food industry or how to scale.
  • Strong opportunities exist for local brands and diverse owners

Early and mid-stage food producers need education, tools, and mentoring as they grow. Food merchants need the lifeblood of new, creative products to keep their mix differentiated from the competition. Accelerators, programs designed to help companies grow through support and resources, are emerging as a mutually beneficial solution.

These are not “Shark Tank“-level programs where the result is competing for big-stakes buyouts or investor interest. They’re instead programs run at the retail chain level that emphasize business preparedness, opening doors to potential product shelf placement, trial runs, and often grant money.

However, the main benefits are education, advice, and connections toward a startup achieving its next step.

‘When our suppliers are successful, so are we’

The Whole Foods Market Local and Emerging Accelerator (LEAP) for Early Growth Program has seen a 60% increase in applications since its inception in 2022. The program is for early stage brands yet to sell in Whole Foods. “By fostering innovative early stage and emerging brands, we increase our ability to surprise and delight our customers,” Kelly Landrieu, Whole Foods’ Director of Local & Emerging Brands, told CO —.

Whole Foods offers LEAP cohorts tailored education, mentorship from Whole Foods Market experts, and a potential financial investment of up to $25,000. Applicants must meet Whole Foods’ quality standards, be transparently sourced, and align with the retailer’s mission and values. Products can be in categories sold across dry or chilled grocery, frozen food, body care, and supplements departments, and applicants compete for 10 spots in the Early Growth cohort. After completing the 12-week curriculum, these suppliers’ products are considered for inclusion on Whole Foods’ shelves in their home cities or regional areas.

LEAP also serves as a lab to identify best practices and resources to better support suppliers outside the program, Landrieu points out. “When our suppliers are successful, so are we,” she noted.

In addition to Early Growth, the LEAP accelerator offers an On the Verge cohort for brands already selling products in select stores on a strong growth trajectory that are helping to address unmet customer needs.

Whole Foods merchants or “foragers” must nominate On the Verge participants to help them explore the next stage of their brand growth. “Mentoring these brands to watch is one of the most exciting and personal ways we can be hands-on with emerging producers and uplift them in our stores,” said Landrieu.


By fostering innovative early stage and emerging brands, we increase our ability to surprise and delight our customers.

Kelly Landrieu, Whole Foods’ Director of Local & Emerging Brands

Invaluable access is a standout benefit of food accelerators like Whole Foods’ Leap program

Jaju Pierogi is one success story from the 2023 Whole Foods LEAP Early Growth cohort. After launching in select North Atlantic Whole Foods, the brand quickly gained traction and is now available in stores nationwide.

One of the most valuable components is gaining the perspective of other vendors going through the program, said Vanessa White, Co-Founder and Chief Marketing Officer, who started the company with her sister, Casey, Co-Founder and Chief Operating Officer/Chief Financial Officer, based on their Polish grandfather’s pierogi recipes. (Jaju is the phonetic spelling of “grandfather” in Polish.)

“We were in groups with companies in fewer stores than we were at the time, and some companies that had achieved success in direct-to-consumer sales, which we don’t do,” explained White.

The best takeaway from the program for White was the relationship built with Whole Foods. “It’s invaluable to have access to people who care about the success of our business,” she said.

Getting out of a headspace of ‘I’m right’

Carlos Acosta applied to food delivery giant DoorDash’s Accelerator for Local Restaurants
because he wanted to take Chowé Empanadas, based on his Columbian mother’s empanada recipe, to the next level. “As a third-generation family member, I was continuing the legacy,” said Acosta. Since completing the program, he has launched a frozen empanada line with five varieties.

DoorDash launched the accelerator in 2021 as an extension of its core business. “DoorDash is about leveling the playing field for small businesses and helping them grow,” Sueli Shaw, Head of Social Impact for the food delivery player, told CO—.

The company offers a free online English and Spanish curriculum to business owners, restaurant owners, or merchants. Brands looking to be part of the formal cohort receive professional mentoring and a $5,000 grant but must apply and be accepted to the six-week program, which currently runs in the Washington, D.C., and Minneapolis markets.

Shaw cites the one-on-one mentoring and connections as the biggest draw. “Time and time again we hear that the connection is valuable,” she noted.

“I met so many people who could teach what to do and not do,” Chowé Empanadas’ Acosta agreed. “Some were very experienced and willing to help me start to make modifications [to grow my business].”

When you are already in business, there is great value in “someone pushing you to what you want to be in the next three to five years and making you make a plan,” said Acosta, who reports his business has doubled in growth since completing the program.

To reap the rewards, however, you must put in the time and work, which can be challenging for someone already running a full-time business. “You have to dig into what’s being asked of you and what you need to do and then apply it,” he said. “As a business owner, you can get into a space of ‘I’m right,’ but you’ve got to be open to feedback.”

[Read:
Innovation and Artisan Options Driving Opportunity in Adult Nonalcoholic Beverages
]

Opportunities for diverse-owned companies via DoorDash

Several food accelerators focus on amplifying diverse-owned brands. DoorDash has run a second program, the Accelerator for Local Goods, for local consumer packaged goods businesses in Chicago, New York City, greater Washington, D.C., and California, owned by entrepreneurs who are women, transgender, immigrants, or people of color. Participants receive a grant, business education, and an opportunity to onboard their product to DashMart, a grocery store concept owned and operated by DoorDash. The program did not have a new cohort in 2024, but past participants are supported with ongoing webinars.

Schnucks, a 115-store supermarket chain with locations in Missouri, Illinois, Indiana, and Wisconsin, launched Schnucks Springboard in March 2024, an accelerator to provide education, resources, and access to local diverse-owned companies (defined as at least 51% operated and managed by a U.S. citizen or legal U.S. resident that is a member of one or more of the following groups: woman, disabled, Black American, Asian American/Pacific Islander, Native American, Hispanic American, LGBTQ, and U.S. military veteran).

In addition to enhancing product offerings, “it is our effort to reflect the communities we serve, to promote opportunity and innovation, and to stimulate our economy,” Adrian Moore, Senior Director of Merchandising Enablement & Supplier Diversity, told CO—.

In its first round, Schnucks Springboard selected 10 companies, based on their business stability, incremental sales opportunity, strategic vision, and corporate responsibility, to receive business development classes at its St. Louis headquarters, networking opportunities, and $5,000 of equity-free funding.

Springboard participants will receive a product trial at select Schnucks stores in 2025 if the company meets food safety, insurance, and certification requirements. This piece is key to a complete education, according to Schnucks. “We wanted our program to give participants insight into getting into grocery and what it takes to succeed and hopefully help them understand if grocery is the correct path for them,” Moore said.

Leveraging industry partnerships for more access

Retailers often work with outside organizations to help construct the curriculum and source participants.

Doordash partners with business support organizations, chambers of commerce, and hospitality associations. Partners for the Summer 2024 Local Restaurants cohort included Bridge for Billions, Pimento Relief Services, Hospitality Minnesota, the Greater Washington Urban League, and DMV Black Restaurant Week. Similarly, for its Accelerator for Local Goods, DoorDash relies on Next Street, an advisory firm that works to ensure that access to networks and capital is equitable for small businesses.

Schnucks, as an initiative of its 2020 diversity, equity, and inclusion plan to increase support for organizations that promote racial equity, partnered with the Mid-States Minority Supplier Development Council (MSDC) to select its accelerator participants. Mid-States cultivates relationships between minority business enterprises and top corporations across Eastern Missouri, Central Illinois, and Indiana.

“Our partnership with Schnucks will not only create economic opportunities but also build a legacy of success that extends beyond business transactions,” said Dr. Demetrius Glover, President and CEO of Mid-States MSDC, in a statement. “Our commitment to diversity, education, and mentorship through the Accelerator programming ensures that emerging leaders have the tools they need to grow and scale their businesses, contributing to a more inclusive and prosperous future for all.”

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

Published

Denise Purcell

This post was originally published on this site

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