Food and Grocery Co-Ops

Consumers who emphasize eating organic food, locally grown produce or items conforming to a special diet can benefit from joining a food and grocery cooperative. Co-ops also deliver value to nearby producers by providing a market for their goods.

What Is a Food and Grocery Co-Op?

What is a food co-op, and what makes it different from your typical grocery store? These organizations are member-based groups that secure access to high-quality food at competitive prices. The cooperative movement has changed how millions of Americans shop for food.

There are two common types of food and grocery co-ops prevalent in the U.S.:

• Member-owned grocery store: Owned by members who have decision-making powers guided by a democratic process. Profits in a member-owned grocery store are either reinvested in the business or divided among members as dividends. The main purpose is to serve the needs of the members and the community, rather than making a profit.
• Community-owned grocery store: Composed of member-owned cooperatives, but can also be owned by a community or a nonprofit. Decision-making powers are shared by members, workers and stakeholders. Profits generated by a community-owned grocery store are reinvested to keep the prices low and benefit the community in the long run.

Top cooperative grocery benefits include having access to local organic produce, competitive prices and valuable support for the local economy through job creation and economic sustainability.

How Does a Food Co-Op Work?

At a grocery co-op, the customers are the owners. One gains a food co-op membership after purchasing shares in the co-op. Member-owners can then participate in decision-making and share the store’s profits. Yet everyone is welcome to shop at co-ops for local, sustainable products, even without becoming a member.

Co-Op vs. Supermarket

Co-ops primarily serve their local communities. Unlike traditional supermarkets that are for-profit, food co-ops are designed to give more money back to the local economy. Grocery cooperatives do business with farmers in the area, stocking up on fresh produce and specialty items you can’t find at a conventional store. Working with local food producers is an integral part of the business for most grocery co-ops.

A Brief History of Food Co-Ops

Member-owned food stores originated in the 1850s and have grown or declined in spurts. The 1960s and ’70s saw significant growth, partially due to skyrocketing inflation. As the economy recovered and then boomed during the 1990s, there was a substantial decline in their use and availability. Consumer demand began rising again in the mid-2000s as people searched for alternatives to the traditional supermarket.

There are numerous reasons behind this popularity ebb and flow. Interest peaks with cultural shifts, such as political or social unrest. Economic uncertainty and a desire for more control over food sourcing also drive increased demand. For example, many consumers have embraced a more plant-based diet or want cruelty-free and fair-trade-certified products. Membership in a food co-op allows them to have a voice in the store’s options through voting.

Today, members can join food and grocery co-ops in numerous countries worldwide. Modern food cooperative examples include:

• Alfalfa House in Sydney, Australia
• Dublin Food Co-Op in Dublin, Ireland
• Unicorn Grocery and The People’s Supermarket in the United Kingdom
• Muskoka North Good Food Co-Op in Huntsville, Ontario
• Co-Op Alentour in Sherbrooke, Quebec

In the United States, there are currently hundreds of independent food co-ops serving more than 1 million members and spanning 38 states.

THE IMPORTANCE OF FOOD CO-OPS

Food co-ops do more for their local communities than provide favorable prices and diverse selections. They create jobs and foster high-quality service by promoting competition.

Historically, food co-ops have been instrumental in boosting consumer protection as well. They were advocates for product labeling regulations and truth-in-advertising laws. These organizations also provide valuable consumer education for better product decision-making.

KEY FACTS ABOUT FOOD AND GROCERY CO-OPS

Grocery and food co-ops exercise social responsibility to benefit local communities and economies. Below are key statistics on grocery cooperatives:

• Every year, U.S. food co-ops exceed $2.4 billion in combined sales
• 38% of a grocery co-op’s revenue is spent locally, including 19% on local benefits and wages
• National Co+op Grocers, a business service cooperative for retail food co-ops in the U.S., represents 218 food co-op locations serving 1.3 million consumer-members.
• With more than 56,000 members, PCC Natural Markets in Seattle is the largest food co-op in the country

BENEFITS OF FOOD AND GROCERY COOPERATIVES

Food co-op members take part in a vibrant community resource while enjoying several benefits. One of the seven cooperative principles is that every member has a vote. Member-owners, not external stakeholders, determine how the co-op operates and spends its money.

Active members share in the co-op’s profits by receiving a refund based on their purchases. Each co-op offers unique benefits. For example, members of the PCC Natural Market in Seattle receive monthly 10% discounts.

As customer-owned stores, grocery co-ops stay in tune with their community’s needs. These groups reshape local economies through job creation and profit distribution.

Co-Op Associations in the Food and Grocery Sector

Regional, national and global associations offer many resources and opportunities for grocery cooperatives to deepen their impact. Below are some of the most widely recognized co-op associations in the food and grocery sector.

National Grocers Association

The National Grocers Association is a national trade organization representing independent grocers, wholesalers and suppliers in the U.S. The group advocates for fair competition to help independent grocers thrive in the industry while working to address critical issues such as supply chain disruptions and rising overhead costs.

National Co+op Grocers

National Co+op Grocers (NCG) is a business services cooperative representing over 160 food corporations in the U.S. They operate more than 240 stores nationwide and work to unify food co-ops to strengthen their purchasing power, provide marketing support and optimize operational resources for their members. NCG’s work enables local co-ops to offer better prices, a wider product selection and improved sustainability practices to customers.

Neighboring Food Co-Op Association

The Neighboring Food Co-op Association (NFCA) is a federation of more than 40 food cooperatives and startup businesses in New York and New England. Their work focuses on collaboration, shared purchasing, advocacy and building a sustainable regional food system. NFCA supports local farmers and promotes food justice and sustainability.

International Cooperative Alliance

The International Cooperative Alliance (ICA) is the global umbrella organization for all types of cooperatives, including food and grocery co-ops. It represents over 1 billion members worldwide, advocates for their interests at the international level and provides a platform for global collaboration.

Cooperatives for a Better World

Cooperatives for a Better World (CBW) is an international initiative that promotes the cooperative business model and its positive impact. CBW creates promotional campaigns geared toward raising awareness of the social and economic benefits of cooperatives, attracting new members and building community support.

Alianza Nacional de Campesinas

While not exactly a food and grocery co-op, Alianza Nacional de Campesinas has food distribution efforts in California and Arizona, serving thousands of individuals suffering from food insecurity. Established by women farmworkers, it is recognized as the first national women farmworkers’ organization in the U.S. This grassroots organization also advocates for human rights, immigrant and migrant justice, health and safety for workers and the end to gender-based violence.

Advantages of Joining NCBA CLUSA

NCBA CLUSA is an internationally recognized trade association for U.S. cooperative businesses working to empower people to improve their economic opportunities. Being a part of our organization offers significant advantages to members, such as:

• Powerful advocacy: We represent the interests of our member co-ops, including food and grocery cooperatives, at the federal, state and local levels. We champion policies that support cooperatives, fair competition and food access, empowering them to better serve their members and communities.
• Access to resources and best practices: NCBA CLUSA members gain access to exclusive toolkits, research and educational materials tailored to their co-ops’ specific needs. We also conduct training, leadership programs, and workshops to equip staff and volunteers with valuable skills and help cooperatives stay up to date on industry trends, compliance and cooperative governance.
• Networking and collaboration: We leverage our wide network to connect members to a group of co-op leaders, experts and peers from all parts of the country. We create opportunities, such as webinars, conferences and regional events, allowing members to exchange knowledge and take part in collaborations.
• Grant and funding opportunities: NCBA CLUSA members get alerts about federal and state grants, funding programs and technical assistance that are essential for their cooperatives’ continuous and sustainable growth.
• Collective strength: We work as a unit, with a collective voice and buying power, to negotiate better terms for cooperatives and influence industry standards. NCBA CLUSA’s collective approach empowers member co-ops through increased bargaining power and enhanced community resilience.
• Credibility and leadership: NCBA CLUSA has over 100 years of experience building an inclusive economy. Backed by decades of leadership and expertise, we take pride in being among the most credible and highly respected cooperative associations in the industry and country.

NCBA CLUSA: A Century of Impact

Around the world, co-ops employ 280 million people and catalyze economic and social development. Cooperative business models create inclusive economies in areas where societal barriers have left many individuals behind. For more than 100 years, NCBA CLUSA has leveraged the shared resources of the cooperative movement to engage and empower people from all walks of life.

If you’re ready to join us in advancing, promoting and defending the cooperative enterprise, become a member today or contact us to learn more about our mission.