The Spinneys Local Business Incubator was introduced in 2020 as a way to help identify and support entrepreneurial ambitions and develop businesses within the FMCG sector in the UAE.
It is a way to fast-track supermarket listings for innovative F&B businesses in a bid to support local food production and stimulate economic growth in the sector.
In its first year, we launched 14 new brands with a further six currently in development phase.
The total sales from these incubator brands alone reached over AED 3 million. The initiative has also been praised by the UAE government’s Food and Water Security office for its contribution to The National Food Security Strategy.
The 2021 Local Business Incubator will reward even more local food producers and manufacturers in the emirates for their innovation. This year’s programme will run with a shorter exclusivity period of six months instead of 12, allowing businesses to grow faster and expand further with other retailers.
Tom Harvey, Commercial Manager at Spinneys, says: “The success and growth of our winners so far is proof that we’re heading in the right direction to build a more sustainable local food ecosystem in support of the UAE’s goal to become the world’s most food-secure nation by 2051. As a UAE success story, Spinneys is an integral part of the community and supporting it is at the core of our values. Being in a position to generate more jobs and help overcome some of the negative economic effects of the pandemic is crucial. We are committed to this journey as part of our corporate sustainability initiative Let’s Do Better Together.”
The Selection Process
- All prospective suppliers must submit a presentation in a digital format. This could be a PowerPoint presentation, video, etc.
- The presentation needs to detail the customer need, the product or concept, the business plan and the person behind the business.
- The panel will review and shortlist potential businesses.
- Shortlisted businesses will be invited for a face-to-face session to present their concept and answer questions posed by panel members.
- The panel will then select businesses to list into Spinneys stores.
- There is no fixed number of businesses that will be shortlisted or listed. This will be at the discretion of the panel and based on the merit of each individual idea.
- The company must be registered in the UAE.
- The owner(s) of the company must be a UAE resident or citizen.
- The product needs to be manufactured or produced in the UAE.
- The company should not already be trading with a supermarket group in within the UAE. Companies can already be trading in pure online, market stall or independent retailers.
- The product concept need not already be in production.
- The product needs to be suitable for supermarket retail and aligned to Spinneys’ brand guidelines and values.
- Spinneys will list the products in suitable stores for 12 months. There is no minimum number of stores and the distribution is subject to change during the 12-month period.
- Spinneys will not charge any account opening fees, product listing fees or other up-front fees that can be considered a barrier to entry.
- Payment terms will be 7 days from receipt of invoice.
- Spinneys will not charge for a feature in any online/social media marketing content.
- Suppliers will be entitled to a minimum of one gondola feature every 3 months without charge. Further secondary sittings can be agreed upon at the discretion of the commercial team.
- Spinneys will provide content for the selected companies on the spinneys.com groceries website.
- Spinneys will provide and cover all costs for one weekend of in-store sampling.
- Spinneys will provide regular coaching sessions with senior commercial and marketing management during the 12-month period if requested.
- The shortlisted suppliers agree to sell exclusively to Spinneys for a period of 6 months. On expiry of the term, the suppliers will be free to list with other retailers. Suppliers can continue any existing trade channels that were in operation prior to commencement of supply to Spinneys.
- The supplier commits to offer all future innovation to Spinneys on a first refusal basis for a period of 3 years from commencement of supply.
- The supplier commits to producing private label variants of any products manufactured by them if requested by Spinneys.
- The supplier agrees to participate on all marketing and social media content deemed necessary by Spinneys.
- The supplier commits to all other standard trade terms set out in CTA to remain compliant with all legal obligations.
Termination of Contract
- Either party can terminate the agreement during the term with 12 weeks-notice in writing.
Renewal of Contract
- On completion of 12 months of supply, the contract will automatically be terminated.
- Spinneys commercial team will decide if they wish to continue to retail the products.
- In the event of continuation, the supplier will migrate to standard business terms which will extend payment terms and introduce listing fees and other charges.