selling to your local food co-op (farmers & producers)

Tony%White %

Co#op %Food%Stores %of %New%Hampshire %& %Vermont %tony@%coopfoodstore .com%%

Erbin %Crowel l %

Neighbor ing %Food%Co#op %Assoc iat ion %erb [email protected]%

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%Al l iance% % / / % %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%Selling%to%Your%Local%Food%Co5op%

 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%Co5op%to%explore%models%for%future%

www.nfca.coop%

FARM%TO%FREEZER%


 Improving%access%to%healthy%and%local%food,%and%member5ownership%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%responsibil ity.%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%[email protected]%www.coopfoodstore.coop%

%

Erbin%Crowell%Neighboring%Food%Co#op%

Association%[email protected]%www.nfca.coop%


THANK%YOU!%

selling to your local food co-op (farmers & producers)

Retail

member5 ownership

co5 ops

vendor retailer