How Large Supermarkets Are Stealing Small Brands' Ideas — And Why It Matters

In the competitive landscape of consumer goods, innovation is everything. From eye-catching packaging to unique flavour profiles and sustainable sourcing, small brands often lead the charge in responding to modern consumer values. But there's a growing problem that many independent businesses are starting to speak out about: large supermarkets and private label giants are allegedly copying — and profiting from — the ideas of the very small brands they claim to support.

The Pattern: From Shelf to Copycat

It usually starts innocently. A small, passionate team launches a product born out of real consumer need — a plant-based energy snack, a gut-friendly drink, or plastic-free products. They pitch to major supermarket buyers, hoping for the kind of exposure that could take their business to the next level.

Sometimes they get that coveted shelf space. Other times, they don’t. But increasingly, these small businesses notice something months later: a suspiciously similar product under the supermarket’s own label — similar name, similar look, similar product.

Coincidence? Many entrepreneurs don’t think so.

A David vs. Goliath Dilemma

Large retailers have the power of scale, data, and access to prime shelf space. Their private-label products can be cheaper because they cut out the middleman and reduce marketing costs. When they mimic a small brand's product, they can undercut it in price and outsell it on visibility, often in the same aisle.

This isn’t just unfair — it’s potentially business-ending for the originator.

For example, a small company claimed that a supermarket copied their artisanal ice cream packaging almost to the letter. Legal action followed, but litigation is expensive, time-consuming, and often out of reach for small operations.

Why Do Supermarkets Do It?

The incentive is clear: private-label goods are highly profitable. They carry better margins and can be positioned exactly where retailers want them. Supermarkets also have access to performance data from the brands they stock, which gives them insider insight into what’s selling and why.

Some use this data to “inspire” their own versions, putting small businesses in the awkward position of feeling both exploited and powerless.

What Small UK Brands Can Do

1. Secure Trademarks and Design Rights: Make sure your brand name, logo, and packaging are protected with the IPO (Intellectual Property Office).

   
   

2. Build a Loyal Audience: A strong brand identity and community can insulate a business from copycats. Customers care about origin stories — leverage that.

   
   

3. Use Publicity: Sometimes, going public with a story of idea theft can lead to consumer backlash against the supermarket — a powerful pressure point.

   
   

4. Collaborate Strategically: Choose retail partners who have a reputation for supporting and not exploiting small brands.

What Can Consumers Do?

Support small brands directly, whether via independent retailers, online shops, or local markets. When you see a supermarket’s private label that looks like a known small brand, ask questions. Demand transparency.

Final Word

Small brands are the lifeblood of the food and drink sector. They bring fresh ideas, better ethics, and bolder flavours. But they need fair play to survive.

Supermarkets might offer the shelf space, but they shouldn’t be taking the ideas too. It’s time for more transparency, stronger protections, and a louder voice for the innovators behind the products we love.