In Business, Creating Sustainable Enterprises & Communities

NATURAL FOODS CO-OP EXPANDS ON GREEN PRINCIPLES

In Business, July-August, 2004, Vol. 26, No. 4, p. 22

Dedicated to the local community and farm economy, Sacramento Co-op keeps growing on sound methods and customer demand.

IN THE PAST 30 YEARS, the Sacramento (California) Natural Foods Co-op (SNFC) has steadily grown to become the second largest natural food cooperative in the United States. It has earned a reputation as a trusted regional resource for natural and organic foods, products and information. Annual sales top $18 million with over 8,000 current owners.
Following intensive discussions with members about growth, SNFC is taking a large step forward and has signed a lease for a second landmark store in the city of Elk Grove, California which will increase its total retail space by 25 percent. The growth will allow expansion of key departments including produce, organic meat and poultry as well as sustainable fish. The 20,000 sq ft new location will also feature a 5,000 sq ft mezzanine to accommodate classroom, meeting and office space similar to the popular Community Learning Center in Sacramento - a source of pride for the Co-op as its contribution to social, educational and healthy lifestyles.
With a continued awareness of protecting the environment, the second Co-op store will boast many new, state-of-the-art and green design features. Currently, the Sacramento Natural Foods Co-op is the largest Sacramento business user of the SMUD (Sacramento Municipal Utility District) Greenergy Program-paying a premium to purchase 100 percent of its electrical power from renewable resources.
Green design features currently under consideration include day-lighting, rainwater retention, solar energy, a dining area composed of straw bale construction, recycled building materials, energy efficient refrigeration, low volatility paints and an exterior landscaped area for community gatherings. The store's interior will be designed as a natural, comfortable and relaxed gathering place that is both clean and efficient. The new location is scheduled for completion in Winter 2004.
A lease for a third store by the Sacramento Natural Foods Co-op is planned in the Granite Bay Village. Situated in a neighborhood center, the new store will occupy 15,000 sq ft and is projected to open in August 2005 with about 50 employees.
2,400 CUSTOMERS PER DAY
From its current location in the heart of Sacramento, SNFC greets over 2,400 customers per day with weekly sales reaching $350,000. The Co-op is also recognized as one of Sacramento's largest employers - offering its employees a living wage since 2001.
The Co-op has introduced a number of quality programs over the years that directly benefit the community it serves. They include:
o Community Discount Program: 10 percent discount to qualified limited income individuals/families receiving assistance from Food Stamp Program, Cal Works, WIOC, Medi-Cal, EAPR (SMUD), CARE (PG&E);
o Food Share Program: Shoppers' donations received at the store's cash registers are distributed equally among four local nonprofit food programs: Loaves & Fishes, Sacramento Food Bank, The Salvation Army and Sharing God's Bounty (In 2002, the Co-op donated over $8,000 to these programs.);
o Local Exchange Program: Discounts offered at participating locally owned business including a selection of restaurants, massage therapists among others;
o Make Every Day Earth Day Donation Program: Established to help reduce paper consumption while supporting local environmental organizations, The Co-op donates 5 cents toward shopper's choice of one of four local environmental groups when they use/reuse their own bag or do not use a bag. Benefiting organizations include: Community Alliance With Family Farmers (CAFF), Ecological Farming Association, Sacramento Tree Foundation, Wildlife Care Association;
o Senior Discount Program: Adults 60 years of age and older receive a 10 percent discount on all purchases the third Wednesday of each month. The Co-op also provides in-store food tastings and sampling opportunities that encourage education about the benefits of natural foods and healthy lifestyles.
The Co-op is committed to supporting organic local family farms and small producers of high quality foods. All the fresh produce sold at the co-op is organically grown.
The general manager of SNFC is Paul Cultrera, who has 25 years of experience working with natural food. Recognized as an industry pioneer, Cultrera was recently given the National Cooperative Business Association Service Award. He has an excellent attitude that encourages innovations for sustainable practices. For example, the Co-op's agreement to use all green energy for the past four years has helped the Sacramento Municipal Utility District to turn methane from the city's landfill into electricity. Cost to the Co-op is an extra $9,000/year - an investment in renewable energy well worth it to Cultrera and Co-op members. In related projects, the new parking lots will use a special soil mix to capture stormwater, have “cool roofs” over its ceilings, and special recycled rubber tire flooring as well as insulation material that uses old blue jeans. Overall the Co-op has greatly influenced the organic food buying demand in the region - especially after it stopped stocking conventional vegetables and fruits.
“It's very rewarding to take a large step forward in our vision to model sustainable environmental practices in our community by incorporating ecologically-sound design principles into our facilities,” explains Cultrera. SNFC also has created an “Adopt-an-Organic Farm” program to assist local urban and rural growers to remain successful by funding them to become certified. Once farms are certified, the Co-op provides a marketplace to sell their produce. Funds come from varied sources including Bioneers Community Discussion Series, bumper sticker sales, etc. The goal is to “build a bridge of mutual benefit between local organic farmers and consumers - making healthier food choices while sustaining local agriculture.”

DEFINING A CONSUMER COOPERATIVE BUSINESS

COOPERATIVES are member-owned, member-governed businesses that operate for the benefit of their members according to common principles agreed upon by the international cooperative community. In co-ops, members pool resources to bring about economic results that are unobtainable by one person alone. Most simply put, a cooperative is a business 1) voluntarily owned by the people who use it, and 2) operated for the benefit of its members. Regardless of the goods and services provided, co-ops aim to meet their members needs.
Most food co-ops are consumer cooperatives, which means that all retail co-ops are owned by the people who shop at the stores. Members exercise their ownership by patronizing the store and voting in elections. The members elect a board of directors to hire, guide and evaluate the general manager who runs day to day operations.
All co-ops contain the following
elements: co-ops are owned and governed by their primary users (the member-owners); co-ops are democratically governed (one-member, one-vote); co-ops are businesses, not clubs or associations; and co-ops adhere to internationally recognized principles.
According to data provide by Cooperative Grocer, cooperative businesses seek to “provide goods and services in a way that keeps community resources in the community.”