Association DEVELOPMENT COOPERATIVE: HELPING OURSELVES ACHIEVE
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1 National Cooperative Grocers Association DEVELOPMENT COOPERATIVE: HELPING OURSELVES ACHIEVE GROWTH
2 NCGA Overview Business services co-operative 55 employees Commercial and home offices 136 retail food co-ops in US U.S. 129 members, 7 associate co-ops 178 locations in 37 states $1.5+ billion annual retail sales 1.3 million consumer owners
3 NCGA Overview Mission: NCGA will provide the vision, leadership and systems to catapult a virtual chain of food co-ops to a position of prominence in the natural foods industry. How? Purchasing, marketing, training and other services that optimize resources and ultimately offer more value to natural food co- op owners and shoppers
4 NCGA s Early Years NCGA was formed out of several regional cooperative grocer associations 1996: Six CGAs across the country NCGA officially formed in late : 59 stores in 20 states, $270M in total sales NCGA operated under a federated system from 1999 to 2004, direct-membership model Direct-membership model since 2004 Preserving regionalism
5 NCGA in 2013 Program Areas Operational & Professional Development Advocacy, Outreach & Education Issues focused on organic standards, small farmer and local food systems Purchasing and Marketing Departments t Two largest departments
6 Honest Weight Albany, New York
7 Honest Weight Albany, New York
8 Honest Weight Albany, New York
9 Honest Weight Albany, New York
10 Honest Weight Albany, New York
11 Honest Weight Albany, New York
12 Honest Weight Albany, New York
13 Honest Weight Albany, New York
14 Honest Weight Albany, New York
15 Purchases Under Contract $1,000,000,000 $900,000,000 $800,000,000 $700,000,000 $600,000, $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000, $ Non COGS GOGS
16 Problem Statement Our members are operating in an increasingly competitive environment Replicating Success and Avoiding Failure Mixed record of success when opening additional i locations or relocating or expanding existing operations New services and departments require new skills Large community of consultants but no one to tie all the pieces together for success
17 NCGA s Solution NCGA Development Cooperative (DC) Wholly owned subsidiary of NCGA Cooperative structure with the options to add outside members in the future Internalizes the experience and expertise needed to achieve success Ultimate t goal is to increase market share
18 DC Operations Store expansions, relocations, opening new locations, business improvement projects and start-ups Project Management: coordinating financing, work with external consultants, and NCGA staff
19 Cost is Tied To Success The DC gets paid only if the project is successful DC staff stay engaged long after the project has been completed Pricing is based on: Long-term payment schedule Tied to revenue meeting predictions
20 Cooperative Subsidiary The DC is organized as a cooperative NCGA is currently the only member DC board is appointed from the NCGA board Initial funding indirectly through NCGA member increases in equity Provides legal and fiscal protection Profits from DC activity are shared Profits from DC activity are shared cooperatively through NCGA patronage
21 New Cooperative Conversion Opportunity NCGA is experimenting with converting an independent grocery store into a cooperative Consumer cooperative entity would be able to operate anywhere in the USA If successful, more stores could be purchased to expand the co-op op Growth to increase volume on all NCGA contracted services, as well as cooperative market share
22 Cooperative Conversion Opportunity NCGA to provide: Management and administrative services on contract Store design, marketing, merchandising and other services In-store branding with NCGA s consumer brand Stores will provide a venue for R & D for a variety of NCGA services and programs
23 NCGA DC Loan Fund Cooperative Capital NCGA Funds NCGA Member Stores Funds NCB Capital Impact Leveraging idle member cash to create a fund of $10-20M USD Funds to be deployed by the DC to support DC projects
24 The Cooperative Difference Food co-op impact study Initial Study: 2012 Updating in 2014 Quantifies the positive impacts of cooperatives vs. non-co-op grocers
25 The Cooperative Difference
26 The Cooperative Difference
27 The Cooperative Difference Gathering updated information from our members Offering incentives for participation Will provide basis for continuous improvement
28 The Co+op Forest Partner with Pur Project Reforestation projects promoting sustainable agroforestry First U.S. partner to plant trees Full circle supply chain remedy to offset
29 The Co+op Forest Alto Huayabamba Project Northern Peru along Huayabamba River Promotes sustainable agroforestry among small-scale scale cacao farmers associated with ACOPAGRO co-op op
30 Sustainable agroforestry Native trees inter-planted with cacao Trees provide shade, bark (medicinal uses) and berries Farmers sustainably harvest trees for income and health of forest
31 Farmer benefits Compensation for planting & maintaining native trees Income from harvested trees Fair trade premiums for cacao Guidance on Guidance on sustainable agroforestry techniques
32 Contact Info Robynn Shrader, CEO National Cooperative Grocers Assoc. (NCGA) 14 S. Linn St. Iowa City, IA USA , ext (or)
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