With the AD Stretch program well underway and Cohort 1 in APAC and LATAM deep in the innovation process, we spoke to two of the start-ups to discuss why they signed up to the accelerator program and what the experience of collaboration with Avery Dennison has been like so far. We’re joined by Vladimir Chuchkin CEO of Waste Labs and Dan Bogar CRO of Varcode.
Vladimir: Ironically, not long before receiving an invitation from AD Stretch, we’d decided not to engage with any accelerators and focus our efforts on business development. We had completed a few programs, had just launched a new product and were focused heavily on its sales and implementation.
Yet, we agreed to take an intro call with the AD Stretch team. The primary trigger for us was their firm focus on building and launching a scalable business case and clear financial terms to try out innovations.
It felt that the Avery Dennison team had done a lot of internal work to gather, prioritise and coordinate the pain points of their business units before articulating the problem statements. We were convinced that if it works, it would be a commitment of a broader team to succeed in this partnership and scale it across the globe.
Dan: As Avery Dennison and Varcode are aligned in providing enhanced monitoring and track & trace of both food and pharmaceutical products as they move from manufacturer to consumer, there was clear synergy. Our core business of using a label to accomplish this makes us natural partners and offers the ability to explore more advanced ways to create information to help our customers be smarter about their cold chain.
Dan: We spent several months discussing our capabilities with a variety of people across all divisions of Avery Dennison as they evaluated our ability to bring value to their customers. The project leaders from both Avery and Highline Beta have been engaged and attentive throughout the process, offering suggestions, advice and access to a broad audience which has raised the visibility of Varcode globally within AD.
Vladimir: The selection process was smooth and well-orchestrated (kudos to Malak, Omar and Upma). At the selection interviews, we met many Avery Dennison experts and executives from the US, Latin America, Europe and ASEAN, which allowed us to better understand the global scale of their operations and the program targets. It took us around 3 months from the first discovery call with the Highline Beta team to receiving a happy email confirming our acceptance to the program.
Vladimir: Avery Dennison is a multinational corporation with operations in over 180 countries. The primary benefit of having internal mentors is their support in navigating and networking within this large organisation. We also appreciate that our mentors come from different markets (Australia, Europe, and India). Overall, the mentorship allows us to understand the specifics of the local operations and initiatives and quickly find new data points, which is critical when you need to make your product scalable across multiple markets.
Dan: Varcode has benefited from the mentor program by initially pairing with the right AD customer for our pilot. This was critical to success for Varcode, Avery Dennison and the participating customer in aligning our capabilities with the requirements of the customer. Additionally, we have uncovered additional opportunities through mentors in other geographic regions. We have also consulted with an external mentor brought to us by AD/Highline to discuss challenges faced by startups in growing a business.
Vladimir: Waste Labs' goal is to become a global digital infrastructure provider for ESG-focused manufacturers and brands that want to deploy, control or operate recyclables collection. Avery Dennison consistently implements initiatives to get its own materials out of the waste stream, set up wide-reaching recycling and use more secondary materials to produce its label and packaging.
To increase recycling volumes of their product waste, Avery Dennison needs to provide collection services to their direct and indirect customers. This service must be easy to use, reliable and priced on par with a traditional waste collection. Using Circle, our flagship AI platform, Avery Dennison can accurately predict and optimise collection costs of recyclable product waste from its customers worldwide.
Dan: We have two main goals. Firstly, to continue to validate the potential of our temperature monitoring solution on a large scale. This will be accomplished through a joint effort of Varcode and AD working closely with an existing customer who requires more extensive monitoring of product to their end customers. Secondly, to identify ways to merge Varcode and AD’s technology into a single product that enhances both Varcode’s capabilities and extends Avery’s offering to their customers.
Dan: Creating enhanced information at all points of the cold chain will help companies reduce product waste, reduce the cost of shipping products, and add visibility to improve the customer experience.
Vladimir: We believe the implementation of AI planning of reverse logistics will enable AD to scale its flagship AD Circular problem globally, maximise collection volume and take control over service costs.
Dan: Varcode is currently proving itself to be a valuable supplier of products AD can distribute to its customers. We plan to expand into an integrated partner and become part of AD’s strategic cold chain monitoring and track & trace infrastructure.
Vladimir: Our POC starts in Thailand, and we look forward to expanding our network with a broader Avery Dennison team in ASEAN, Europe, the US and Latin America.
Avery Dennison built a great culture that motivates people to share their knowledge and give you a hand, even if what we do does not directly impact their business right away. AD people are united with building a truly circular company and setting up a new industry standard in sustainability.
Vladimir: Build on the superpowers of your startup partner: we are lean and always focused on creating value. Your best partner will always be hungry to understand your operational pain points and ensure their product creates enough long term value. Help them by sharing as much information as possible, as nobody knows your business better than you.
Dan: Understand that start ups are built to, and must, move fast to develop markets and products. Time is our biggest obstacle which is sometimes contradictory for large organizations who have developed procedures to manage their vast resources. Companies like Avery Dennison have to adjust to the speed of the start ups as much as possible so both companies can see success.
Dan: Understand your goals for the program and make sure they align with the host company. Also, be open to additional avenues of opportunity as your relationship grows – many times the host company or the startup don’t recognize the true value of the partnership until both have the opportunity to engage and explore potential applications.
Vladimir: Treat this opportunity as a sales lead. You know the drill: be proactive, validate the pain points with a broader team and always think of the impact you create. Remember, investment in the POC is an investment that must have an ROI as well. Try to show it as soon as possible.