Members Make a Difference

food co-ops bring together individuals with common goals that make for better business

When food co-ops emerged during the counterculture movement of the 1960s, they were the only provider of organic and natural foods. But as consumer demand increased, chain groceries like Wal-Mart and Whole Foods began offering the products. Last year, organic food sales totaled about $17 billion in the United States, a 22 percent increase from 2005.

And despite the presence of more big players in the marketplace, many co-ops say they are flourishing.

Co-ops are owned by their members, who use the products, vote on important decisions, elect board members and receive a share of the yearly profits proportional to spending, says Robert King, head of the University of Minnesota’s Department of Applied Economics.

Minnesota boasts a nation-leading 1,000 co-ops, serving about 2.5 million Minnesotans, says Amy Fredregill, vice president of the Minnesota Association of Cooperatives. The metro area has 12 food co-ops, including The Wedge and the Seward Co-op.

King attributes co-ops’ strength to their consumer focus and ability to build relationships with customers.

“The relationships co-ops have with their membership are a really unique thing,” he says. “And it’s something other stores can’t duplicate.”

Nora Hoeft, 28, has shopped at St. Paul’s Mississippi Market since she was hired three years ago as a health and body care manager. She says she feels more welcome at a co-op than at a chain.

“Going into Rainbow is a bit overwhelming,” Hoeft says. “I like coming here where people know my name.”

Mississippi Market opened in 1979, and between its two locations, the co-op has about 7,500 member-owners. General Manager Gail Graham says the co-op did about $13 million in sales last year.

To keep membership and sales high at Mississippi Market, Graham says they simply try to stay ahead of the curve, monitoring the type of products customers want, like items from local farmers.

And despite more product availability, members aren’t flocking to the chains, Graham says. “Sure you can get organics everywhere, but you can’t get the values behind the food everywhere,” she says. “That still sets us apart.”

Sara Schweid