In Innovation, 1+1 Can Be Greater Than 2

In 1935, Stan Avery introduced the world's first pressure-sensitive sticker. Off the back of a US$100 loan, he created and patented the world's first self-adhesive die-cut labeling machine, and The Avery Dennison Corporation was born.

For almost 90 years, Avery Dennison generated most of our remarkable growth by innovating from within, hiring the best talent and building research facilities across the world.

As we continue to invest in our internal capabilities, improve collaboration between our different areas and regions, enhance our go-to-market strategies and continuously strengthen our product portfolio, we realize that we can't do it all. This approach acknowledges that game-changing ideas can emerge from any source, compelling us to remain open and receptive to insights from anywhere.

In 2022, we turned to open innovation as a tool in our toolbox to launch the AD Stretch program. AD Stretch is a non-dilutive startup accelerator focused on customer engagement, sustainability, and materials innovation that offers a pilot-based program to startups with proven sales and go-to-market experience, the ability to innovate and the vitality to engage with Avery Dennison. The accelerator aims to unite the financial, R&D and vast technical resources of Avery Dennison with startups to create impactful solutions.

As tech and B2C companies forge ahead into the next horizon of startup engagement, conventional accelerators become commonplace. AD Stretch, however, was an industry first, propelling Avery Dennison into uncharted territory, embracing a new and forward-thinking approach.

In just 18 months, the accelerator program has grown from launch mode to a thriving program that fielded over 500 applications from over 35 countries and created pilot programs for 14 startup businesses.

Our AD Stretch program is a testament to our dedication to pushing boundaries. Through a unique blend of enablers, the program sets itself apart as a catalyst for groundbreaking ideas - propelling us toward a more sustainable world.

Making the Value Proposition Personal

Our program takes the value proposition of open innovation to a whole new level by tying it to specific business challenges. This resonates well with our leadership, but we understand that it may not immediately connect with our frontline employees. That's where the program's core team comes in, bridging the gap and enabling our frontline teams to unleash their experimental spirit and collaborate with startups. It is important that the program is not seen as an additional obligation to employees but rather as an opportunity to enhance the results of their current work.

By aligning the benefits of the program directly with their roles and daily work, we ignite a sense of purpose and engagement that goes beyond expectations.

Creating Spaces for Fearless Experimentation

Innovation is born from a willingness to take risks and explore new territories of ideas and possibilities. That's why we foster experimentation spaces within the AD Stretch where the only expected outcome is learning. We understand that not every pilot will succeed - and that's okay. Each pilot, successful or not, teaches us invaluable lessons.

By encouraging our teams to embrace small, contained experiments and empowering them to try without the fear of failure, we are cultivating a culture of courage and resilience. These safe spaces provide the necessary environment for innovation to flourish, where our employees embrace risk-taking as a vital element of progress. Our commitment to continuous improvement and adaptability drives us forward, turning failures into stepping stones toward success.

Empowering Teams with Shared Budgets

We recognize that the power of collaboration between businesses and startups often faces budget constraints, but ideally, we should not let financial limitations hinder the pursuit of innovation. That's why the AD Stretch equips teams with a small, shared budget for pilot execution. By doing so, we unleash the full potential of our teams and their partners, ensuring that promising ideas do not go unrealized due to financial barriers. This shared budget approach enables us to maximize the impact of our pilots and paves the way for transformative collaborations.

Going to Where the Need Is

At Avery Dennison, we believe in going beyond traditional approaches. Instead of starting in the traditional "big regions," we took a bold step and launched our accelerator in Latam and APAC.

Our commitment to these regions was not merely a trial; it was a genuine dedication to fostering innovation on a global scale. And the response was overwhelming. Eighty employees from various levels, from VPs to operators, eagerly signed up to mentor our startups.

By creating engagement points across the regions after two cohorts, we have expanded the AD Stretch Accelerator globally, magnifying its impact and embracing a truly inclusive innovation ecosystem.

Leveraging the Power of FOMO

Fear Of Missing Out (FOMO) is a force that compels individuals and teams to step out of their comfort zones and actively participate. By creating an environment that generates a feeling of being outside and not participating, we ignite a deep sense of curiosity and drive to be part of the innovative journey. FOMO becomes our secret weapon, inspiring employees to engage and bring out the best in each one.

Turning Ideas into Impact

The collaboration between Avery Dennison and startups within the AD Stretch program has yielded tangible outcomes. Moree is a UK-based startup that offers food brands flexible, reusable packaging for dry food with a platform that tracks packaging, rewards customers for their returns, and provides valuable data on plastic, carbon, and cost savings.

When Moree joined AD Stretch, we co-developed the pilot with The Modern Milkman to test a reusable, flexible film for bread and other baked goods. During the pilot, we developed a fully circular label that could resist Moree’s washing cycle and tested RFID tags in the package to improve supply chain traceability.

“Labeling is critical to making packaging a success, but we lacked capabilities and knowledge in this area,” says Dejan Mitrovic, co-founder of Moree. “AD Stretch has allowed us to access expertise that Avery Dennison has and we don’t. Getting advice from a bigger company has been helpful. I don’t know how we could have gotten to where we are without them.”

Another participant, Cellr, developed a platform that enables brands to connect their physical products to endless digital experiences that showcase the power of connected packaging to deliver tailored consumer engagement and targeted messaging while enabling brand owners to make data-driven strategic decisions. By leveraging Avery Dennison's extensive expertise in digital ID solutions, the AD Stretch pilot opened up exciting new horizons for Cellr. This collaboration amplified Cellr's go-to-market strategies and empowered the startup to understand previously untapped.

"Being part of AD Stretch has opened doors to many markets much faster than we could have done ourselves. The project's champions and mentors were instrumental in Cellr successfully running pilots across different segments", says Chris Braine, CEO and co-founder of program participant Cellr. "We truly learned what it takes to stand on a global stage with a purpose. Scaling up with a brand like Avery Dennison is a game changer, and we are very excited to see where this journey goes next".

As we celebrate the small and significant steps achieved through the AD Stretch Accelerator, it is clear that our commitment to innovation knows no bounds. Each milestone reached signals our progress toward sustainability, where materials innovation plays a pivotal role in shaping a better future.