Whole Foods Launches Accelerator as Grocers Compete for Shoppers

Whole Foods Market is looking to have a hand in the creation of the brands on its shelves.

The Amazon-owned grocery brand, which has over 500 locations across the United States, Canada and the United Kingdom, announced in a Monday (Feb. 28) press release the launch of an accelerator to mentor emerging producers.

“Since we opened our first store, we have been on the lookout for small, local and emerging producers with products that our customers will love,” Whole Foods Market Vice President of Local Merchandising Will Betts said in the release. “Over the years, we’ve helped many of these producers find their footing and grow their businesses, and we are thrilled to formalize this assistance with our Local and Emerging Acceleration Program.”

With the program, which began accepting applications Tuesday (March 1), the grocer intends to provide education opportunities regarding the specifics of the industry as well as possible financial help, with the “potential to receive a $25,000 equity investment” from a fund with input from a nonprofit organization with which Whole Foods Market works. The 10-week curriculum will be followed by a year of mentorship from one of the grocer’s so-called Local Foragers, someone who scouts new products and brands for the retailer.

Whole Foods Market is far from the only grocer or retailer to have such a program. In May, for instance, The Kroger Co., the largest pure-play grocer in the United States, announced the launch of its “Go Fresh & Local Supplier Accelerator,” which serves a similar function, soliciting applications to choose 15 finalists to attend a pitch session. A winner from each of five regions was chosen to receive placement on shelves in the first quarter of 2022.

Read more: Kroger Launches Supplier Accelerator Program

“We’re dedicated to fostering innovation and investing in local, regional and small businesses that make the best of food accessible to all,” said Kroger Group Vice President of Fresh Merchandising Dan De La Rosa at the time “Our first Go Fresh & Local Supplier Accelerator is an extension of our commitment, and we’re eager to invite suppliers of every size to participate, providing the potential to grow our businesses together.”

Notably, the share of grocery shoppers motivated by product availability is small, although not negligible. Just 6% of consumers cite product or brand availability as the most influential factor when selecting a merchant to purchase from, according to data from PYMNTS’ study “Decoding Customer Affinity: The Customer Loyalty to Merchants Survey 2022,” created in collaboration with Toshiba Global Commerce Solutions, which drew from the results of a survey of a census-balanced panel of more than 2,000 U.S. consumers.

Get the report: The Customer Loyalty to Merchants Survey 2022

However, the higher-income consumers whom Whole Foods Market typically targets are more likely than those in other income brackets to cite product availability as a motivator. The report found that the share of consumers whose annual income is more than $100,000 listing this factor as their top priority is double that of the population overall, with 12% of these high-income consumers looking for their favorite products above all else.