From startup to supermarket shelves: how to get your products into the UK’s top grocery stores

The steps you must take to land on supermarket shelves

Ensure you have the cashflow

It’s a brilliant feeling once you secure that contract with a large retailer to supply your products to them. However it does come with its complications, one of which is cash flow.

According to Michael Buckworth, managing partner at UK law firm Buckworths, cash flow is one of the main problems cited by startups when working alongside large supermarket chains.

“Rarely do supermarkets pay up-front or assist startups with cashflow. This often means that founders will need to source funding to manufacture and deliver the goods required to meet their obligations in the contract with the supermarket.”

Without cashflow you could find yourself struggling to make ends meet in order to expand your business.

Get your supply chain and operations functions in order

Even with the cash flow to cater to the huge volumes of supermarket orders, you will fall at the first hurdle if you don’t have your operations nailed down.

Ben Vear, General Manager of oat milk brand Minor Figures, believes that although it’s tempting for brands to rush into working with major grocery retailers, it’s critical to get your house in order.

“Supermarkets won’t take kindly to your products being unavailable or out of stock, and getting supply right from the off is what can often make or break a brand when working in such a competitive environment.

“If you aren’t ready then consider starting smaller and working with your local independent retailers, direct to consumers through e-commerce and with health food stores where you can build your brand and a base of loyal consumers.”

Consider starting smaller and working with your local independent retailers, direct to consumers through e-commerce and with health food stores where you can build your brand and a base of loyal consumers.

Outreach to buyers

For Harry Turpin, founder of snack brand The Savourists, the key to getting your product onto shelves is persistence when dealing with category buyers.

“Don’t stop reaching out until you get a reply. Once you’ve found the right buyer for your category; call, email, message, repeat. This stage is laborious and time consuming, but persistence is key. Once you get a response, pitch, pitch, pitch.

“And be aware that product market fit is crucial – demonstrate how your product is the solution to their problems. Show them their current fixture and emphasise to them what they are missing – which is your product!”

Noel Eves, a former category buyer at Tesco and founder of protein cereal brand Superzeros, states that buyers often make decisions based on the classic playbook of finding a well-researched gap in the market.

“Buyers will invest heavily in developing a new product that better serves a niche, providing evidence that it has cut through and a well-funded plan, before showcasing how the product will be supported with marketing in a store environment when it is listed.

“So ideally you want your product to stand out, serve a niche, and be able to provide evidence of a solid, well funded plan.”

Know exactly what standards grocers have set

Ann Perkins, the co-founder of snack brand Perkier, has summarised what she believes supermarkets are looking for in a startups product based on her own experiences pitching to large retailers. At a minimum you must provide:

• Evidence of consumer demand for your products
• Differentiation vs the competitive set which is relevant and motivating to their customer base
• A responsive and professional sales team who are analytical and know the market
• Products manufactured to a high standard
• Competitive prices and promotional plans
• 98% supply levels minimum

Understand and promote your USP

This one has come up time and time again when talking to business owners, but the significance of a standout USP cannot be underestimated.

The market is incredibly competitive. Even more so right now at a time when supermarkets are tightening budgets as they take the hit of rising food and supply chain costs.

Your product needs to fit a niche and be ultra desirable to consumers. This is reinforced by Danny Lowe, founder of the UK’s leading functional confectionery brand BLOCKHEAD, who sells its products in Sainsbury’s, WHSmith, and Boots to name a few retailers.

“From my experience, it has been vital to have a USP. At BLOCKHEAD we are lucky (by design) as our range of products adds a unique functional dimension to chewing gums and sweets and we have been one of the first movers in the industry.

“However, the proposition and USP need to not only be for the customer but also have a USP for the overall category. You need to show why it makes sense for the buyer to add the product to the shelf.”

Consider the shelf life of your product

Many factories have minimum order quantities (MOQ) to fulfil and this could result in them needing to produce large amounts of your product at one time – in some cases even a whole year’s supply.

Consider the shelf life of your products in case this occurs, as all large supermarket retailers have strict guidelines on the remaining shelf life of products they purchase.

Jerome Jacob, Founder of natural energy drink Mango Go!, believes this is often a concept that stings startups once they take on big contracts.

“Shelf life is a key challenge when working with large retailers. You may need to produce a year’s worth of stock to meet a factory MOQ yet need to sell it within 3 months of manufacture or the supermarket will reject it, as they require 75% remaining shelf life on what you ship them.

“Startups can be stung because of this early doors and it can prove costly. Do your research and ensure you are working with the right manufacturer, and that your product has a long, health shelf life to limit the risks.”

But why supply to supermarkets? The advantages and disadvantages

Next steps: preparing your brand for the supermarkets

To recap, these are the steps you need to take before pitching your product:

• Ensure you have the cashflow
• Get your supply chain and operations functions in order
• Outreach to buyers
• Know exactly what standards grocers have set
• Understand and promote your USP
• Consider the shelf life of your product

There are many other things your business can do to help get onto those all important supermarket shelves.

Effective marketing is essential. Even though it can be costly, getting it right can raise your profile, increasing your brand equity and making you more attractive to supermarket category buyers.

Find out all about the latest digital marketing trends and the top digital marketing agencies in the UK to get your marketing strategy off to a flying start.

You should also consider putting a project plan in place so you and your team can be as organised and efficient as possible. The key to attracting supermarket buyers is to demonstrate you have all your ducks in a row.

Check out our ultimate guide to the best free project plan templates to ensure you are fully prepared.

But ultimately, as Remedy Drinks UK general manager Anna Dominey states, consider first whether the larger grocery retailers are the best channel to start in.

Or does it make more sense to start building in independent retail first, to test the appeal of your product and get your supply chain in order?

Remedy did just that before gaining its first UK supermarket listing, growing rapidly as a result.

The drinks brand has driven 67% of all kombucha category growth over the past six months. Anna puts it down to “the robust processes in place to manage our forecasting, production planning, and inventory management as we grow.”