Selling to Your Local Food Co-op (Farmers & Producers)

Tony%White%
Co#op%Food%Stores%
of%New%Hampshire%
&%Vermont%
tony@%
coopfoodstore.com%
%
Erbin%Crowell%
Neighboring%Food%
Co#op%Association%
erbin@nfca.coop%
NOFA%SUMMER%CONFERENCE%2014:%
SELLING%TO%YOUR%
LOCAL%FOOD%CO=OP%
%

“Food%co5ops%in%our%region%make%a%
priority%of%supporting%local%farmers,%
producers%and%co5ops.%This%workshop%will%
explore%the%regional%impact%of%your%
Neighboring%Food%Co5ops,%what%you%need%
to%know%to%oﬀer%your%products%to%local%
food%co5ops%as%well%as%how%to%best%report%
local%economic%impact.”%
Selling%to%Your%Local%Food%Co5op% www.nfca.coop%
SELLING%TO%YOUR%LOCAL%FOOD%CO5OP%

A%food%co5op%is%a%grocery%store%that%is%
equitably%owned%and%democratically%
controlled%by%its%members%for%their%
common%good,%the%good%of%the%
community%and%to%accomplish%a%shared%
goal%or%purpose.%%%
Any%surplus%(or%proﬁt)%is%distributed%as%a%
patronage%rebate%in%proportion%to%use%of%
the%business,%as%a%discount%at%the%
register,%or%is%reinvested%in%the%business.%
WHAT%IS%A%FOOD%CO5OP?%

Co5operatives%are%based%on%the%values%of%
self5help,%self5responsibility,%democracy,%
equality,%equity%and%solidarity.%In%the%
tradition%of%their%founders,%co5operative%
members%believe%in%the%ethical%values%of%
honesty,%openness,%social%responsibility%
and%caring%for%others.%
%
International%Co5operative%Alliance%%//%%www.ica.coop%
VALUES%BASED%

Impact%on%Local%Food%Systems%&%Economies:%
 Community%ownership%&%control%
 Focus%on%service,%meeting%needs%before%profit%
 Develop%local%skills%&%assets%
 Ability%to%assemble%limited%resources%
 Build%regional%economic%efficiencies%
 Difficult%to%move%or%buy5out%
 Root%wealth%in%community,%not%markets%
 Engage%member,%customer%&%supplier%loyalty%
 Low%business%failure%rate%&%are%long5lived%
WHY%DO%FOOD%CO5OPS%MATTER?%

 Community%
ownership%and%
participation%support%
enterprise%resilience%
 Resilience%sustains%
economic%
infrastructure%and%
supports%local%
producers%over%time%
www.nfca.coop%
RESILIENCE%&%LOCAL%FOOD%SYSTEMS%
Selling%to%Your%Local%Food%Co5op%

%
More%stable%local%food%systems,%
infrastructure,%employment,%services,%
and%economy.%
THE%RESULT?%

The%Neighboring%Food%Co5op%
Association%is%a%network%of%food%co5
ops%working%toward%a%shared%vision%of%
a%thriving%regional%economy,%rooted%in%
a%healthy,%just%and%sustainable%food%
system,%and%a%vibrant%community%of%
co5operative%enterprise.%
YOUR%NEIGHBORING%FOOD%CO5OPS%

www.nfca.coop%
REGIONAL%IMPACT%
 35%Food%Co5ops%&%
Start5Ups%
 90,000%Memberships%%
 1,700%Employees%
 $42%Million%in%Wages%
 $240+%Million%
Revenue%
 $30+%Million%in%Local%
Purchases%
%
(Updated%for%2013)%

www.nfca.coop%
NATIONAL%IMPACT%
National%Co5op%Grocers%Association%(NCGA),%2012%

 Food%co5ops%are%
committed%to%local%
producers%
 Working%together%we%
can%strengthen%
relationships%and%
impact%
 Focus%on%peer5to5peer%
collaboration,%sharing%
of%best%practices%
SUPPORTING%COLLABORATION%

 Collaboration%with%
Provisions%
International%
 Promote%region’s%
artisan%cheese%makers%
 Monthly%special%
 Volume%has%doubled%
since%2009%
 28,000%pounds%of%
cheese%over%5%years%
www.nfca.coop%
CAVE%TO%CO5OP%

 2%yr%pilot%of%frozen%
fruits%&%vegetables%
 13,000%pounds%over%
2012513%season%
 Challenge:%processing,%
price%&%distribution%%
 Collaboration%with%
Deep%Root%Organic%Co5
op%to%explore%models%
for%future%
www.nfca.coop%
FARM%TO%FREEZER%

 Improving%access%to%
healthy%and%local%
food,%and%member5
ownership%for%
people%on%limited%
incomes%
 Member%discounts,%
payment%options,%
food%education%
%
http://nfca.coop/healthyfoodaccess%
www.nfca.coop%
HEALTHY%FOOD%FOR%ALL%

 Is%it%a%ﬁt?%
 Partnership%
 Does%it%work%for%both%
sides?%
 Approaching%a%Food%
Co5op,%what%to%
expect%
 Pricing%
 Promotion%
 Marketing%
SELLING%TO%YOUR%LOCAL%FOOD%CO5OP%

  Food%Co5op’s%Mission%
  Organic%
  Certified?%
  Commitment%to%local%
  Buying%Practice%
  Defined%priorities%
  Fair%Trade%Principles%
  Supply%
  Primary%supplier%or%back5up%
  Delivery%
  Meeting%the%needs%
  Standards%
  Specs%
  Certifications%
  Packaging%
  Food%Safety%
Sample%Policy%Statement%
Our%Co5op%is%dedicated%to%
supporting%social%and%
environmental%responsibility.%
We%know%where%our%products%
come%from:%we%carry%local%
items%whenever%possible,%and%
make%an%effort%to%purchase%
from%small,%independent%
suppliers.%Our%produce%is%
mainly%organic;%our%products%
as%a%whole%are%primarily%
organic%or%natural.%We%read%
labels,%and%endeavor%to%avoid%
artificial%additives%and%
excessive%packaging%
IS%IT%A%FIT?%

PARTNERSHIP%
 Not%just%a%vendor/
retailer%relationship%
 Building%a%partnership%
 Clarity%
 Openness%
 Fairness%
 Trust%
 Communication%
 Commitment%

FARMER%/%FOOD%CO5OP%COMMUNITY%
WORKING%TOGETHER%

FARMER%/%FOOD%CO5OP%COMMUNITY%
BUILDING%RELATIONSHIPS%

WIN5WIN%
 Needs%to%work%from%
both%sides%
  Financially%
  Logistically%
  Delivery%
  Ordering%
  Organized%
  Supply%and%demand%
  Availability%
  Movement%
  Quality%
  Consistency%

 Direct%
 Food%
Shows%
 Distributers%
 Producer%
Co5ops%
CONNECTING%WITH%A%FOOD%CO5OP%

 Wide%Range%of%Practices%
 Large,%medium%and%small%Food%Co5ops%
 Vendor%Submission%Packets%
 Merchandisers%
 Local%Food%Coordinator%
 Department%Manager/Buyer%
 Department%Staﬀ%
GO%DIRECT%—%WHAT%TO%EXPECT%

 Bring%Samples%
 UPC%%
 Packaging/crates%
 Label%
 Ingredients%
 Know%the%law%
 Food%Co5op%can%provide%insight%and%resources%
 Certiﬁcations%
 Wholesale%pricing%
 Description/order%number,%Size,%Pack,%shipping%costs%
 Complete%Vendor%contact%info%–email,%phone%
BE%PREPARED%

 List%of%current%retailers%carrying%product%
 Sales%history/movement%
 Press/advertising%
 Awards%
 References%
 Distributer/Broker/Direct%Delivery/Producer%Co5op%
 Frequency%
 Orders%
 Licenses,%permits,%health%inspections/practices%
 Insurance%
 Payment%Terms%
BE%PREPARED%

 Great%way%to%meet%future%
customers%
 Buyers%are%on%a%mission%
 Chance%for%buyers%to%see/hear%
your%story%%
 Sample%your%product%
FOOD%SHOWS%

 Right%Distributer%
 Ask%around%
 Knowledgeable%Sales%reps%
 Active%rep%
 Demos,%etc.%
 Fair%upcharge%
 What%is%your%time%worth?%
DISTRIBUTORS%

  Members%can%focus%on%
farming%
  Co5op%focuses%on%
aggregation,%adding%value,%
marketing,%distribution%
  Scale:%Producers%keep%local%
ownership%and%control%while%
building%scale%and%inﬂuence%in%
marketplace%
  Eﬃciency:%Food%Co5ops%can%
collaborate%with%multiple%
producers%at%once%
  Examples:%Deep%Root%Organic%
Co5op,%Organic%Valley,%North%
Country%Farmers%Co5op,%Port%
Clyde%Fresh%Catch,%etc.%
PRODUCER%CO5OPS%

 Farmer/Producer%sets%cost%
 Food%Co5op%sets%retail%price%
 Collaboration%
 Variable%margins%(Gross%Proﬁt)%
 Flexibility%for%Food%Co5op%
 More%on%some%less%on%others%
 Promotion%
 On%Sale%
PRICING%&%PROMOTION%

 Marketing%your%product%
 POS%material%%
 Pamphlets,%signs,%photos%
 Demos%
 Vendor%driven%is%best%
 Store%Events%
 Sampling%parties,%customer%appreciation%
days%
 Proven%winner?%Best%approach!%
YOU%ARE%IN!%
NOW%BUILD%SUCCESS%

 Manager%Relations%
 Needed%
 Staﬀ%Relations%
 Critical%for%success%
STAFF%RELATIONS%

TOURS%

 Questions%
 Opportunities%
 Feedback%
DISCUSSION%

%
Tony%White%
Co#op%Food%Stores%of%NH%&%VT%
tony@coopfoodstore.com%
www.coopfoodstore.coop%
%
Erbin%Crowell%
Neighboring%Food%Co#op%
Association%
erbin@nfca.coop%
www.nfca.coop%
THANK%
YOU!%

Selling to Your Local Food Co-op (Farmers & Producers)

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