SlideShare a Scribd company logo
Real Pickles: The Story of a
Co-operative Conversion
Kristin Howard NOFA Summer Conference 2016
Real Pickles
kristin@realpickles.com
MISSION
We are committed to promoting
human and ecological health
by providing people with
delicious, nourishing food and
by working toward a regional,
organic food system.
We aim to produce the highest
quality, traditional pickled
foods available, using
natural fermentation.
We buy our vegetables only
from Northeast family farms
and sell our products only
within the Northeast.
Our ingredients are 100% organic.
	
  
	
  
EARLY	
  DAYS	
  
Hain
Celestial
#82
ShariAnn's
M&M
Mars
#10
Mondelez
(spinoff from
#4 Kraft in
2012)
Coca-Cola
#11
General
Mills
#8
Cargill
#15
Dean
#7
ConAgra
#14
Kellogg
#12
Walnut
Acres
Millina's
Finest
Frutti di
Bosco
Muir Glen
Celestial
Seasonings
Imagine/Rice
Dream/Soy
Dream
Little Bear
Arrowhead
Mills
Bearitos
Spectrum
Organics
Lightlife
The Organic
Cow of
Vermont
Breadshop
Alta Dena
Westbrae
Mountain
Sun
DeBole's
Earth's Best
Nile Spice
Health Valley
Westsoy
Cascadian
Farm
Garden of
Eatin'
Casbah
Horizon
Odwalla
White
Wave/Silk
Organic Industry
Structure:
Acquisitions & Alliances,
Top 100 Food Processors in
North America
October
2001
$181 M
July 1998
13% Equity;
January 2004
100% Equity
$216 M
Morningstar
Farms/Natural
Touch
November 1999
$307 M
Organic
Brand
Acquisitions
# Numbers refer to
rank in North American
food & beverage sales
according to
Food Processing,
August 2012
October
1997
$23.5 M
June
2003
October 2001
June 2001
September 1999
From Heinz
March 2000
$390 M December
2002
April 1999
$80 M
April 1998
$80 M
December 1998
Back to
Nature
Boca
Foods
French
Meadow
Seeds of
Change
1997 July
2000
December
1999
March
1998
May 2002
$189 M
May 2013
Spinoff, 0% Equity
May 1999
April 1999
June
2000
September 2003
100% Equity;
August 2012
majority stake sold
to Brynwood
Partners
Kashi
August
2005
$33 M
August 2003, alliance to develop
nutritionally enhanced ingredients
February 2000
Food
Processors
#
Hershey
Foods
#20
Dagoba
October
2006
TofuTown
June 2007
From Dean
May 2002, alliance to develop
nutritionally enhanced ingredients
Naked
Juice
Pepsi
#1
November 2006
Green &
Black's
January 2010
Alexia
Foods
July 2007
Wholesome
& Hearty
Bear
Naked
November
2007
$122 M
July
2006
Nestle
#3
Tribe
Mediterranean
Foods
September 2008
$57M
via Israeli subsidiary
Osem Group
(50.1% Equity)
LaraBar
Honest
Tea
May 2013
February 2008
40% Equity
$43 M;
March 2011
100% Equity
June 2008
MaraNatha SunSpire
March
2008
Rich
Products
Corp.
#42 Post
Foods
(spinoff from #25
Ralcorp in 2012)
Golden
Temple
Peace
Cereal
Willamette
Valley
Granola
Food Should
Taste GoodFebruary 2012
Campbell
Soup Co.
#30
Bolthouse
Farms
July 2012
$1.55 B
Phil Howard, Associate Professor
Michigan State University
Hillshire
Brands
(formerly #28
Sara Lee)
Aidell's
Sausage
May 2011
$87 M
Sweet
Leaf Tea
May
2011
Stonyfield
Brown
Cow
J.M.
Smucker
#23
R.W.
Knudsen
Santa Cruz
Organic
Snyder's-
Lance
#61
Late July
BluePrint
November
2012
May
2013
Ella's
Kitchen
Happy
Family
May 2013
92% Equity
AB InBev
#5
Goose
Island
March 2011
$38.8 M
Ralcorp
#25
(private label
organic foods)
Bloomfield
Bakers
Lovin
Oven
March 2007
$140 M
November
2012
$6.8 B
Millstone
November 2008
1984 1989
December 2007
minority stake
February
2003
October 2001
40% Equity;
January 2004
85% Equity
May 2013
$158 M
May 2010
$71 M
Miller-
Coors
#17
Crispin
February
2012
Fox
Barrel
January
2010
Maple
Leaf
Foods
#24 Olafson's
Baking Co.
90% Equity
July
2002
Perdue
Farms
#27
Coleman
Natural
May 2011
Hans
August 2003
August
2007
Draper
Valley Farms
Petaluma/
Rosie
January
2002
Tea Forte
January 2012
JAB/D.E.
Master
Blenders
(formerly #28
Sara Lee)
Wolfgang
Puck
July
2008
Foster
Farms
#46
Humboldt
Creamery
August 2009
$19.5 M
CROPP
(Organic
Valley)
#93
Canada
Bread Co.
#63
TreeHouse
Foods
#50 Sturm
Foods
December 2009
$660 M
Naturally
Fresh
March 2012
$25 M
Hearthside
Foods
(cereal
division)
#89
Meyer Natural
Foods
December
2010
Diamond
Foods
#88
Kettle
February 2010
$615 M
J&J Snack
Foods
#92
Kim &
Scott's
June 2012
$7.9 M
John B.
Sanfilippo
& Son
#98
Orchard
Valley
Harvest
May 2010
$29.5 M
June 2010; joint marketing
agreement
November 2009,
Stonyfield
brand licensed
to CROPP
for fluid milk
Danone
(Dannon)
#66
Dakota
Beef
Peet's
Coffee &
Tea
August 2012
$1 B
New
Morning
December 2012
Erewhon
Plum
Organics
May 2013
•  Business owned and democratically controlled by
members - the people who use the co-op’s services
or buy its goods.
•  Board is elected by the membership and may be
composed of members as well as non-member
representatives.
•  Return surplus revenues to members proportionate
to their use of the cooperative.
•  Exist not to maximize profit but to meet their
members’ needs, goals and aspirations.
WHAT IS A CO-OP?
NaturallyFermented&Raw
REAL PICKLES
•  Who is interested? Do staff want to own the business?
•  What do we want Real Pickles to look like in 10-20
years? Do we have a common vision?
•  Do Dan and Addie want to sell? Do they think a co-op
could run Real Pickles effectively?
•  Learning more about what a co-op could look like
•  Practice working together
“Transition” means create a new entity incorporated
under Mass co-op law and buy Real Pickles
August 2012 DECISION – YES, we want to own it! 5
potential co-op members sign memo of understanding
THE PROCESS - PART 1
•  Governance – Who would run it? How do we want to
be structured?
•  Writing by-laws – What is important to us?
•  Business valuation – What is Real Pickles worth and
how do you measure it?
•  How to pay for it?
THE PROCESS - PART 2
NaturallyFermented&Raw
REAL PICKLES
•  Each of the five members bought a $6,000 member
share for a total of $30,000
•  Co-op Fund of New England loan $69,000
•  Line of credit from our local bank $150,000
•  Community investments (DPO) $500,000
•  Family, friends, stores, food co-ops, allied
organizations
•  Minimum investment of $2500
•  Limited return - target dividend of 4%
•  Non-voting
HOW TO PAY FOR IT
NaturallyFermented&Raw
REAL PICKLES
•  Successful transition
•  Owners stayed on as members
•  More worker became members
•  Shared mission and vision
•  Continued staff education
•  Continued business success
THREE YEARS LATER	
  
NaturallyFermented&Raw
REAL PICKLES
•  Maintain strong social mission
•  Meaningful jobs
•  Keep local businesses local
•  Preserve economic infrastructure
•  Support community minded owners
•  Ensure long-term viability beyond founders
WHY CO-OP SUCCESSION?
NaturallyFermented&Raw
REAL PICKLES
•  Started with a thriving business
•  Supportive founders committed to long-term success
•  Critical mass of engaged and skilled staff willing to
commit and do the work
•  It was the right moment
•  Governance clarity
•  Staff education and training
•  Had a communication plan, especially for capital
campaign
•  Engaged outside expertise
•  Strong network
WHY IT WORKED
(IN OUR OPINION)	
  
NaturallyFermented&Raw
REAL PICKLES
 
MAY	
  9,	
  2013	
  CO-­‐OP!	
  
•  Communities Involved in Sustaining Agriculture
(CISA) - Case Study of Real Pickles DPO
•  Co-op Fund of New England (CFNE)
•  Valley Alliance of Worker Co-ops (VAWC)
•  Project Equity - Case Study of Real Pickles
Conversion and Case Study of Real Pickles
Financing
•  Cutting Edge Capital
RESOURCES
NaturallyFermented&Raw
REAL PICKLES

More Related Content

What's hot

From the Year of Co ops to the Co-operative Decade, UConn 10.19.12
From the Year of Co ops to the Co-operative Decade, UConn 10.19.12From the Year of Co ops to the Co-operative Decade, UConn 10.19.12
From the Year of Co ops to the Co-operative Decade, UConn 10.19.12
NFCACoops
 
Role of co-operative in agribusiness
Role of co-operative in agribusinessRole of co-operative in agribusiness
Role of co-operative in agribusiness
Patel Divyesh
 
Nofa conference Co-op presentation, August 2011
Nofa conference Co-op presentation, August  2011Nofa conference Co-op presentation, August  2011
Nofa conference Co-op presentation, August 2011
monadnockcoop
 

What's hot (20)

Economic Democracy: Building Co-operative Power
Economic Democracy: Building Co-operative PowerEconomic Democracy: Building Co-operative Power
Economic Democracy: Building Co-operative Power
 
Co-ops and Their Role in the Collaborative Economy and Growing a Conscious Bu...
Co-ops and Their Role in the Collaborative Economy and Growing a Conscious Bu...Co-ops and Their Role in the Collaborative Economy and Growing a Conscious Bu...
Co-ops and Their Role in the Collaborative Economy and Growing a Conscious Bu...
 
Co-ops & Economic Democracy: Why Go Co-op?
Co-ops & Economic Democracy: Why Go Co-op?Co-ops & Economic Democracy: Why Go Co-op?
Co-ops & Economic Democracy: Why Go Co-op?
 
What is a Co-op? Our Co-op and the Wider Co-operative Movement
What is a Co-op? Our Co-op and the Wider Co-operative MovementWhat is a Co-op? Our Co-op and the Wider Co-operative Movement
What is a Co-op? Our Co-op and the Wider Co-operative Movement
 
From the Year of Co ops to the Co-operative Decade, UConn 10.19.12
From the Year of Co ops to the Co-operative Decade, UConn 10.19.12From the Year of Co ops to the Co-operative Decade, UConn 10.19.12
From the Year of Co ops to the Co-operative Decade, UConn 10.19.12
 
Exploring the Potential of Regional Sourcing
Exploring the Potential of Regional SourcingExploring the Potential of Regional Sourcing
Exploring the Potential of Regional Sourcing
 
The NFCA Story : Regional Collaboration for Shared Success
The NFCA Story : Regional Collaboration for Shared SuccessThe NFCA Story : Regional Collaboration for Shared Success
The NFCA Story : Regional Collaboration for Shared Success
 
Help Make the Vision a Reality
Help Make the Vision a RealityHelp Make the Vision a Reality
Help Make the Vision a Reality
 
Co-ops in the Food System: Conversions, Start-ups and Supply Chains
Co-ops in the Food System: Conversions, Start-ups and Supply ChainsCo-ops in the Food System: Conversions, Start-ups and Supply Chains
Co-ops in the Food System: Conversions, Start-ups and Supply Chains
 
Building Food Systems of Solidarity
Building Food Systems of Solidarity Building Food Systems of Solidarity
Building Food Systems of Solidarity
 
Dorchester Community Food Co-op: Building a Multi-Stakeholder Co-op
Dorchester Community Food Co-op: Building a Multi-Stakeholder Co-opDorchester Community Food Co-op: Building a Multi-Stakeholder Co-op
Dorchester Community Food Co-op: Building a Multi-Stakeholder Co-op
 
Start a Worker Co-op or Convert an Existing Business, NOFA SC, 8.8.13
Start a Worker Co-op or Convert an Existing Business, NOFA SC, 8.8.13Start a Worker Co-op or Convert an Existing Business, NOFA SC, 8.8.13
Start a Worker Co-op or Convert an Existing Business, NOFA SC, 8.8.13
 
Humanizing the Economy with John Restakis, 5.31.12
Humanizing the Economy with John Restakis, 5.31.12Humanizing the Economy with John Restakis, 5.31.12
Humanizing the Economy with John Restakis, 5.31.12
 
Multistakeholder Cooperation
Multistakeholder Cooperation Multistakeholder Cooperation
Multistakeholder Cooperation
 
Food Industry Conference Presentation
Food Industry Conference PresentationFood Industry Conference Presentation
Food Industry Conference Presentation
 
Growing the Co-operative Food System
Growing the Co-operative Food SystemGrowing the Co-operative Food System
Growing the Co-operative Food System
 
The Co-operative Difference in Challenging Times: Why Co-operatives Matter
The Co-operative Difference in Challenging Times: Why Co-operatives MatterThe Co-operative Difference in Challenging Times: Why Co-operatives Matter
The Co-operative Difference in Challenging Times: Why Co-operatives Matter
 
Role of co-operative in agribusiness
Role of co-operative in agribusinessRole of co-operative in agribusiness
Role of co-operative in agribusiness
 
Nofa conference Co-op presentation, August 2011
Nofa conference Co-op presentation, August  2011Nofa conference Co-op presentation, August  2011
Nofa conference Co-op presentation, August 2011
 
Co-operatives: Resiliency in Action, NOFA NH Winter Conference 2013
Co-operatives: Resiliency in Action, NOFA NH Winter Conference 2013Co-operatives: Resiliency in Action, NOFA NH Winter Conference 2013
Co-operatives: Resiliency in Action, NOFA NH Winter Conference 2013
 

Viewers also liked

A internet no ambiente escolar (3)
A internet no ambiente escolar (3)A internet no ambiente escolar (3)
A internet no ambiente escolar (3)
Renan Torres
 
ApresentacaoECOLOPAVI
ApresentacaoECOLOPAVIApresentacaoECOLOPAVI
ApresentacaoECOLOPAVI
Jary Maciel
 
Diversidade de Plantas Apícolas em Santa Catarina
Diversidade de Plantas Apícolas em Santa CatarinaDiversidade de Plantas Apícolas em Santa Catarina
Diversidade de Plantas Apícolas em Santa Catarina
Label-ha
 
Graficos diario del_eurodolar_para_el_30_01_2012
Graficos diario del_eurodolar_para_el_30_01_2012Graficos diario del_eurodolar_para_el_30_01_2012
Graficos diario del_eurodolar_para_el_30_01_2012
Experiencia Trading
 
Gene for-gene hypothesis & its validty in the present scenario
Gene for-gene hypothesis & its validty in the present scenarioGene for-gene hypothesis & its validty in the present scenario
Gene for-gene hypothesis & its validty in the present scenario
Dr. Nimit Kumar
 
Nano robotica.pptx
Nano robotica.pptxNano robotica.pptx
Nano robotica.pptx
nicosantos93
 
Ejercicio análisis
Ejercicio análisis Ejercicio análisis
Ejercicio análisis
nicosantos93
 

Viewers also liked (15)

A internet no ambiente escolar (3)
A internet no ambiente escolar (3)A internet no ambiente escolar (3)
A internet no ambiente escolar (3)
 
Trabajo de investigacion u #3
Trabajo de investigacion u #3Trabajo de investigacion u #3
Trabajo de investigacion u #3
 
Dinámica demográfica de Montevideo en el contexto nacional en el período 1985...
Dinámica demográfica de Montevideo en el contexto nacional en el período 1985...Dinámica demográfica de Montevideo en el contexto nacional en el período 1985...
Dinámica demográfica de Montevideo en el contexto nacional en el período 1985...
 
Export
ExportExport
Export
 
ApresentacaoECOLOPAVI
ApresentacaoECOLOPAVIApresentacaoECOLOPAVI
ApresentacaoECOLOPAVI
 
Food logistic
Food logisticFood logistic
Food logistic
 
Diversidade de Plantas Apícolas em Santa Catarina
Diversidade de Plantas Apícolas em Santa CatarinaDiversidade de Plantas Apícolas em Santa Catarina
Diversidade de Plantas Apícolas em Santa Catarina
 
Systems Pharmacology 2: Drug re-positioning & Combination 2
Systems Pharmacology 2: Drug re-positioning & Combination 2Systems Pharmacology 2: Drug re-positioning & Combination 2
Systems Pharmacology 2: Drug re-positioning & Combination 2
 
Graficos diario del_eurodolar_para_el_30_01_2012
Graficos diario del_eurodolar_para_el_30_01_2012Graficos diario del_eurodolar_para_el_30_01_2012
Graficos diario del_eurodolar_para_el_30_01_2012
 
Caracterizacao fisica-e-classificacao-dos-solos
Caracterizacao fisica-e-classificacao-dos-solosCaracterizacao fisica-e-classificacao-dos-solos
Caracterizacao fisica-e-classificacao-dos-solos
 
Arduino - iniciação à linguagem C: LCD 1602
Arduino - iniciação à linguagem C: LCD 1602Arduino - iniciação à linguagem C: LCD 1602
Arduino - iniciação à linguagem C: LCD 1602
 
Gene for-gene hypothesis & its validty in the present scenario
Gene for-gene hypothesis & its validty in the present scenarioGene for-gene hypothesis & its validty in the present scenario
Gene for-gene hypothesis & its validty in the present scenario
 
1ºBACH Guía de estudio tema 0 Introducción Historia
1ºBACH Guía de estudio tema 0 Introducción Historia1ºBACH Guía de estudio tema 0 Introducción Historia
1ºBACH Guía de estudio tema 0 Introducción Historia
 
Nano robotica.pptx
Nano robotica.pptxNano robotica.pptx
Nano robotica.pptx
 
Ejercicio análisis
Ejercicio análisis Ejercicio análisis
Ejercicio análisis
 

Similar to Real Pickles: The Story of a Co-operative Conversion

BU On Campus presentation of Apr 19 2011
BU On Campus presentation of Apr 19 2011BU On Campus presentation of Apr 19 2011
BU On Campus presentation of Apr 19 2011
Jeff Allar
 
SOCAP10: Bion Bartning, Basis Foods
SOCAP10: Bion Bartning, Basis FoodsSOCAP10: Bion Bartning, Basis Foods
SOCAP10: Bion Bartning, Basis Foods
Melanie Cheng
 
CPO Overview Presentation
CPO Overview PresentationCPO Overview Presentation
CPO Overview Presentation
knisavic
 
2015 Mill Street Sustainability Report (12_1_2016)
2015 Mill Street Sustainability Report (12_1_2016)2015 Mill Street Sustainability Report (12_1_2016)
2015 Mill Street Sustainability Report (12_1_2016)
Steve Abrams
 
Nyr organic opportunity presentation 12.5.13
Nyr organic opportunity presentation  12.5.13Nyr organic opportunity presentation  12.5.13
Nyr organic opportunity presentation 12.5.13
Shawna McFetridge
 

Similar to Real Pickles: The Story of a Co-operative Conversion (20)

Flp
FlpFlp
Flp
 
NYR Organic USA Opportunity Presentation - powerpoint - PDF
NYR Organic USA Opportunity Presentation -  powerpoint - PDFNYR Organic USA Opportunity Presentation -  powerpoint - PDF
NYR Organic USA Opportunity Presentation - powerpoint - PDF
 
NYR Organic Opportunity Presentation
NYR Organic Opportunity PresentationNYR Organic Opportunity Presentation
NYR Organic Opportunity Presentation
 
Nyrorganicopportunitypresentationpowerpoint 141204174458-conversion-gate01
Nyrorganicopportunitypresentationpowerpoint 141204174458-conversion-gate01Nyrorganicopportunitypresentationpowerpoint 141204174458-conversion-gate01
Nyrorganicopportunitypresentationpowerpoint 141204174458-conversion-gate01
 
BU On Campus presentation of Apr 19 2011
BU On Campus presentation of Apr 19 2011BU On Campus presentation of Apr 19 2011
BU On Campus presentation of Apr 19 2011
 
Cascadian Farm Situation Analysis
Cascadian Farm Situation AnalysisCascadian Farm Situation Analysis
Cascadian Farm Situation Analysis
 
SOCAP10: Bion Bartning, Basis Foods
SOCAP10: Bion Bartning, Basis FoodsSOCAP10: Bion Bartning, Basis Foods
SOCAP10: Bion Bartning, Basis Foods
 
Jamba juice.pptx
Jamba juice.pptxJamba juice.pptx
Jamba juice.pptx
 
Aloe Vera Franchise Business
Aloe Vera Franchise BusinessAloe Vera Franchise Business
Aloe Vera Franchise Business
 
CPO Overview Presentation
CPO Overview PresentationCPO Overview Presentation
CPO Overview Presentation
 
One On One Opp
One On One OppOne On One Opp
One On One Opp
 
Flp business plan
Flp business planFlp business plan
Flp business plan
 
Tom Green GCC 2015
Tom Green GCC 2015Tom Green GCC 2015
Tom Green GCC 2015
 
2015 Mill Street Sustainability Report (12_1_2016)
2015 Mill Street Sustainability Report (12_1_2016)2015 Mill Street Sustainability Report (12_1_2016)
2015 Mill Street Sustainability Report (12_1_2016)
 
Engaging Community to Improve Healthy Neighborhood Food Options
Engaging Community to Improve Healthy Neighborhood Food OptionsEngaging Community to Improve Healthy Neighborhood Food Options
Engaging Community to Improve Healthy Neighborhood Food Options
 
Pepsi seminar
Pepsi seminarPepsi seminar
Pepsi seminar
 
Nyr organic opportunity presentation 12.5.13
Nyr organic opportunity presentation  12.5.13Nyr organic opportunity presentation  12.5.13
Nyr organic opportunity presentation 12.5.13
 
Riverbend Market Cooperative
Riverbend Market CooperativeRiverbend Market Cooperative
Riverbend Market Cooperative
 
Seminar
SeminarSeminar
Seminar
 
Searle Vitamin Water (Realization of New Category)
Searle Vitamin Water (Realization of New Category)Searle Vitamin Water (Realization of New Category)
Searle Vitamin Water (Realization of New Category)
 

More from NFCACoops

Breaking down walls and building participation
Breaking down walls and building participationBreaking down walls and building participation
Breaking down walls and building participation
NFCACoops
 
Measuring and Communicating Our Impact for Shared Success
Measuring and Communicating Our Impact for Shared SuccessMeasuring and Communicating Our Impact for Shared Success
Measuring and Communicating Our Impact for Shared Success
NFCACoops
 

More from NFCACoops (20)

The Future is Co-operative: NFCA Food Co-op Impact Presentation
The Future is Co-operative: NFCA Food Co-op Impact PresentationThe Future is Co-operative: NFCA Food Co-op Impact Presentation
The Future is Co-operative: NFCA Food Co-op Impact Presentation
 
Building Our Co-ops: Community Organizing
Building Our Co-ops: Community OrganizingBuilding Our Co-ops: Community Organizing
Building Our Co-ops: Community Organizing
 
The Startup Forecast...with Bonnie & Jacqueline
The Startup Forecast...with Bonnie & JacquelineThe Startup Forecast...with Bonnie & Jacqueline
The Startup Forecast...with Bonnie & Jacqueline
 
NFCA's 2019 Northeast Startup Co-op Day Intro
NFCA's 2019 Northeast Startup Co-op Day IntroNFCA's 2019 Northeast Startup Co-op Day Intro
NFCA's 2019 Northeast Startup Co-op Day Intro
 
Rocket Fuel: Building Your Startup’s Governance Power
Rocket Fuel: Building Your Startup’s Governance PowerRocket Fuel: Building Your Startup’s Governance Power
Rocket Fuel: Building Your Startup’s Governance Power
 
Membership Growth & Ongoing Engagement
Membership Growth & Ongoing EngagementMembership Growth & Ongoing Engagement
Membership Growth & Ongoing Engagement
 
Assessing & Demonstrating Your Start-up Co-op's Success
 Assessing & Demonstrating Your Start-up Co-op's Success  Assessing & Demonstrating Your Start-up Co-op's Success
Assessing & Demonstrating Your Start-up Co-op's Success
 
NFCA Afternoon & Addressing Climate Change Workshop, Annual Meeting 2019
NFCA Afternoon & Addressing Climate Change Workshop, Annual Meeting 2019NFCA Afternoon & Addressing Climate Change Workshop, Annual Meeting 2019
NFCA Afternoon & Addressing Climate Change Workshop, Annual Meeting 2019
 
NFCA Annual Meeting & Gathering Board and Staff Reports, 2019
NFCA Annual Meeting & Gathering Board and Staff Reports, 2019NFCA Annual Meeting & Gathering Board and Staff Reports, 2019
NFCA Annual Meeting & Gathering Board and Staff Reports, 2019
 
From Soil to Sovereignty—Good Food for All
From Soil to Sovereignty—Good Food for AllFrom Soil to Sovereignty—Good Food for All
From Soil to Sovereignty—Good Food for All
 
Integrating Impact Into Co-op Planning: The Balanced Score Card
Integrating Impact Into Co-op Planning: The Balanced Score CardIntegrating Impact Into Co-op Planning: The Balanced Score Card
Integrating Impact Into Co-op Planning: The Balanced Score Card
 
Why (Some) Startup Food Co-ops Fail
Why (Some) Startup Food Co-ops FailWhy (Some) Startup Food Co-ops Fail
Why (Some) Startup Food Co-ops Fail
 
Breaking down walls and building participation
Breaking down walls and building participationBreaking down walls and building participation
Breaking down walls and building participation
 
NFCA Board Director Peer Gathering Presentation
NFCA Board Director Peer Gathering Presentation NFCA Board Director Peer Gathering Presentation
NFCA Board Director Peer Gathering Presentation
 
A Legacy of Food Security: A History of Food Co-ops in the Northeast
A Legacy of Food Security: A History of  Food Co-ops in the NortheastA Legacy of Food Security: A History of  Food Co-ops in the Northeast
A Legacy of Food Security: A History of Food Co-ops in the Northeast
 
Measuring and Communicating Our Impact for Shared Success
Measuring and Communicating Our Impact for Shared SuccessMeasuring and Communicating Our Impact for Shared Success
Measuring and Communicating Our Impact for Shared Success
 
Rocking Your Capital Campaign
Rocking Your Capital CampaignRocking Your Capital Campaign
Rocking Your Capital Campaign
 
Recruiting Talent & Retaining Good Board Members
Recruiting Talent & Retaining Good Board MembersRecruiting Talent & Retaining Good Board Members
Recruiting Talent & Retaining Good Board Members
 
Using Annual Meetings to Showcase Co-op Impact
Using Annual Meetings to Showcase Co-op ImpactUsing Annual Meetings to Showcase Co-op Impact
Using Annual Meetings to Showcase Co-op Impact
 
Sharing Successes: Leading the Inclusive Economy.
Sharing Successes: Leading the Inclusive Economy.Sharing Successes: Leading the Inclusive Economy.
Sharing Successes: Leading the Inclusive Economy.
 

Recently uploaded

Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot ReportFuture of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Dubai Multi Commodity Centre
 
zidauu _business communication.pptx /pdf
zidauu _business  communication.pptx /pdfzidauu _business  communication.pptx /pdf
zidauu _business communication.pptx /pdf
zukhrafshabbir
 

Recently uploaded (20)

Potato Flakes Manufacturing Plant Project Report.pdf
Potato Flakes Manufacturing Plant Project Report.pdfPotato Flakes Manufacturing Plant Project Report.pdf
Potato Flakes Manufacturing Plant Project Report.pdf
 
PitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsPitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for Startups
 
LinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptxLinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptx
 
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot ReportFuture of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
 
Raising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE VenturesRaising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE Ventures
 
The Inspiring Personality To Watch In 2024.pdf
The Inspiring Personality To Watch In 2024.pdfThe Inspiring Personality To Watch In 2024.pdf
The Inspiring Personality To Watch In 2024.pdf
 
Innomantra Viewpoint - Building Moonshots : May-Jun 2024.pdf
Innomantra Viewpoint - Building Moonshots : May-Jun 2024.pdfInnomantra Viewpoint - Building Moonshots : May-Jun 2024.pdf
Innomantra Viewpoint - Building Moonshots : May-Jun 2024.pdf
 
zidauu _business communication.pptx /pdf
zidauu _business  communication.pptx /pdfzidauu _business  communication.pptx /pdf
zidauu _business communication.pptx /pdf
 
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf
12 Conversion Rate Optimization Strategies for Ecommerce Websites.pdf
 
Using Generative AI for Content Marketing
Using Generative AI for Content MarketingUsing Generative AI for Content Marketing
Using Generative AI for Content Marketing
 
FEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service LightningFEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service Lightning
 
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdf
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdfMatt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdf
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdf
 
Engagement Rings vs Promise Rings | Detailed Guide
Engagement Rings vs Promise Rings | Detailed GuideEngagement Rings vs Promise Rings | Detailed Guide
Engagement Rings vs Promise Rings | Detailed Guide
 
Global Interconnection Group Joint Venture[960] (1).pdf
Global Interconnection Group Joint Venture[960] (1).pdfGlobal Interconnection Group Joint Venture[960] (1).pdf
Global Interconnection Group Joint Venture[960] (1).pdf
 
Creative Ideas for Interactive Team Presentations
Creative Ideas for Interactive Team PresentationsCreative Ideas for Interactive Team Presentations
Creative Ideas for Interactive Team Presentations
 
Unleash Data Power with EnFuse Solutions' Comprehensive Data Management Servi...
Unleash Data Power with EnFuse Solutions' Comprehensive Data Management Servi...Unleash Data Power with EnFuse Solutions' Comprehensive Data Management Servi...
Unleash Data Power with EnFuse Solutions' Comprehensive Data Management Servi...
 
How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?
 
Understanding UAE Labour Law: Key Points for Employers and Employees
Understanding UAE Labour Law: Key Points for Employers and EmployeesUnderstanding UAE Labour Law: Key Points for Employers and Employees
Understanding UAE Labour Law: Key Points for Employers and Employees
 
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...
 
Unlock Your TikTok Potential: Free TikTok Likes with InstBlast
Unlock Your TikTok Potential: Free TikTok Likes with InstBlastUnlock Your TikTok Potential: Free TikTok Likes with InstBlast
Unlock Your TikTok Potential: Free TikTok Likes with InstBlast
 

Real Pickles: The Story of a Co-operative Conversion

  • 1. Real Pickles: The Story of a Co-operative Conversion Kristin Howard NOFA Summer Conference 2016 Real Pickles kristin@realpickles.com
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. MISSION We are committed to promoting human and ecological health by providing people with delicious, nourishing food and by working toward a regional, organic food system. We aim to produce the highest quality, traditional pickled foods available, using natural fermentation. We buy our vegetables only from Northeast family farms and sell our products only within the Northeast. Our ingredients are 100% organic.    
  • 10. Hain Celestial #82 ShariAnn's M&M Mars #10 Mondelez (spinoff from #4 Kraft in 2012) Coca-Cola #11 General Mills #8 Cargill #15 Dean #7 ConAgra #14 Kellogg #12 Walnut Acres Millina's Finest Frutti di Bosco Muir Glen Celestial Seasonings Imagine/Rice Dream/Soy Dream Little Bear Arrowhead Mills Bearitos Spectrum Organics Lightlife The Organic Cow of Vermont Breadshop Alta Dena Westbrae Mountain Sun DeBole's Earth's Best Nile Spice Health Valley Westsoy Cascadian Farm Garden of Eatin' Casbah Horizon Odwalla White Wave/Silk Organic Industry Structure: Acquisitions & Alliances, Top 100 Food Processors in North America October 2001 $181 M July 1998 13% Equity; January 2004 100% Equity $216 M Morningstar Farms/Natural Touch November 1999 $307 M Organic Brand Acquisitions # Numbers refer to rank in North American food & beverage sales according to Food Processing, August 2012 October 1997 $23.5 M June 2003 October 2001 June 2001 September 1999 From Heinz March 2000 $390 M December 2002 April 1999 $80 M April 1998 $80 M December 1998 Back to Nature Boca Foods French Meadow Seeds of Change 1997 July 2000 December 1999 March 1998 May 2002 $189 M May 2013 Spinoff, 0% Equity May 1999 April 1999 June 2000 September 2003 100% Equity; August 2012 majority stake sold to Brynwood Partners Kashi August 2005 $33 M August 2003, alliance to develop nutritionally enhanced ingredients February 2000 Food Processors # Hershey Foods #20 Dagoba October 2006 TofuTown June 2007 From Dean May 2002, alliance to develop nutritionally enhanced ingredients Naked Juice Pepsi #1 November 2006 Green & Black's January 2010 Alexia Foods July 2007 Wholesome & Hearty Bear Naked November 2007 $122 M July 2006 Nestle #3 Tribe Mediterranean Foods September 2008 $57M via Israeli subsidiary Osem Group (50.1% Equity) LaraBar Honest Tea May 2013 February 2008 40% Equity $43 M; March 2011 100% Equity June 2008 MaraNatha SunSpire March 2008 Rich Products Corp. #42 Post Foods (spinoff from #25 Ralcorp in 2012) Golden Temple Peace Cereal Willamette Valley Granola Food Should Taste GoodFebruary 2012 Campbell Soup Co. #30 Bolthouse Farms July 2012 $1.55 B Phil Howard, Associate Professor Michigan State University Hillshire Brands (formerly #28 Sara Lee) Aidell's Sausage May 2011 $87 M Sweet Leaf Tea May 2011 Stonyfield Brown Cow J.M. Smucker #23 R.W. Knudsen Santa Cruz Organic Snyder's- Lance #61 Late July BluePrint November 2012 May 2013 Ella's Kitchen Happy Family May 2013 92% Equity AB InBev #5 Goose Island March 2011 $38.8 M Ralcorp #25 (private label organic foods) Bloomfield Bakers Lovin Oven March 2007 $140 M November 2012 $6.8 B Millstone November 2008 1984 1989 December 2007 minority stake February 2003 October 2001 40% Equity; January 2004 85% Equity May 2013 $158 M May 2010 $71 M Miller- Coors #17 Crispin February 2012 Fox Barrel January 2010 Maple Leaf Foods #24 Olafson's Baking Co. 90% Equity July 2002 Perdue Farms #27 Coleman Natural May 2011 Hans August 2003 August 2007 Draper Valley Farms Petaluma/ Rosie January 2002 Tea Forte January 2012 JAB/D.E. Master Blenders (formerly #28 Sara Lee) Wolfgang Puck July 2008 Foster Farms #46 Humboldt Creamery August 2009 $19.5 M CROPP (Organic Valley) #93 Canada Bread Co. #63 TreeHouse Foods #50 Sturm Foods December 2009 $660 M Naturally Fresh March 2012 $25 M Hearthside Foods (cereal division) #89 Meyer Natural Foods December 2010 Diamond Foods #88 Kettle February 2010 $615 M J&J Snack Foods #92 Kim & Scott's June 2012 $7.9 M John B. Sanfilippo & Son #98 Orchard Valley Harvest May 2010 $29.5 M June 2010; joint marketing agreement November 2009, Stonyfield brand licensed to CROPP for fluid milk Danone (Dannon) #66 Dakota Beef Peet's Coffee & Tea August 2012 $1 B New Morning December 2012 Erewhon Plum Organics May 2013
  • 11. •  Business owned and democratically controlled by members - the people who use the co-op’s services or buy its goods. •  Board is elected by the membership and may be composed of members as well as non-member representatives. •  Return surplus revenues to members proportionate to their use of the cooperative. •  Exist not to maximize profit but to meet their members’ needs, goals and aspirations. WHAT IS A CO-OP? NaturallyFermented&Raw REAL PICKLES
  • 12. •  Who is interested? Do staff want to own the business? •  What do we want Real Pickles to look like in 10-20 years? Do we have a common vision? •  Do Dan and Addie want to sell? Do they think a co-op could run Real Pickles effectively? •  Learning more about what a co-op could look like •  Practice working together “Transition” means create a new entity incorporated under Mass co-op law and buy Real Pickles August 2012 DECISION – YES, we want to own it! 5 potential co-op members sign memo of understanding THE PROCESS - PART 1
  • 13. •  Governance – Who would run it? How do we want to be structured? •  Writing by-laws – What is important to us? •  Business valuation – What is Real Pickles worth and how do you measure it? •  How to pay for it? THE PROCESS - PART 2 NaturallyFermented&Raw REAL PICKLES
  • 14. •  Each of the five members bought a $6,000 member share for a total of $30,000 •  Co-op Fund of New England loan $69,000 •  Line of credit from our local bank $150,000 •  Community investments (DPO) $500,000 •  Family, friends, stores, food co-ops, allied organizations •  Minimum investment of $2500 •  Limited return - target dividend of 4% •  Non-voting HOW TO PAY FOR IT NaturallyFermented&Raw REAL PICKLES
  • 15.
  • 16.
  • 17. •  Successful transition •  Owners stayed on as members •  More worker became members •  Shared mission and vision •  Continued staff education •  Continued business success THREE YEARS LATER   NaturallyFermented&Raw REAL PICKLES
  • 18.
  • 19.
  • 20. •  Maintain strong social mission •  Meaningful jobs •  Keep local businesses local •  Preserve economic infrastructure •  Support community minded owners •  Ensure long-term viability beyond founders WHY CO-OP SUCCESSION? NaturallyFermented&Raw REAL PICKLES
  • 21. •  Started with a thriving business •  Supportive founders committed to long-term success •  Critical mass of engaged and skilled staff willing to commit and do the work •  It was the right moment •  Governance clarity •  Staff education and training •  Had a communication plan, especially for capital campaign •  Engaged outside expertise •  Strong network WHY IT WORKED (IN OUR OPINION)   NaturallyFermented&Raw REAL PICKLES
  • 22.   MAY  9,  2013  CO-­‐OP!  
  • 23. •  Communities Involved in Sustaining Agriculture (CISA) - Case Study of Real Pickles DPO •  Co-op Fund of New England (CFNE) •  Valley Alliance of Worker Co-ops (VAWC) •  Project Equity - Case Study of Real Pickles Conversion and Case Study of Real Pickles Financing •  Cutting Edge Capital RESOURCES NaturallyFermented&Raw REAL PICKLES