NEWS & OPINION :: MARCH 02, 2005

Reaching out vs. selling out

Co-op debates name change

By JOHN STEGMAIER

Shoppers at the East Lansing Food Co-op are used to getting free tastes of favorite recipes, but some who entered the store last week got a sample of grass-roots democracy. They were handed a petition to appeal the board of directors’ decision to change the co-op’s name to Grand Harvest Market.

Gathering 87 signatures from members and employees, David Finet presented the petition to the board to force a full co-op member vote on the proposed renaming. The 67 verified signatures exceeded the minimum of 50 needed to prompt a general vote. The board now has 30 days to schedule a voting date on the issue of the name change.

Co-op employee Allison Singer opposes the proposed name change to Grand Harvest Market.

For several years, the board has been trying to reverse a steadily declining profit margin. Among the measures already taken are the hiring of a new general manager, an extensive renovation to the store and the inclusion of specialty products not readily available in the area, such as Zingerman’s bakery products. Despite these changes, the board remained dissatisfied with the amount of increased revenue. It hopes a name change will overcome the perception among potential health food consumers that co-ops are exclusive.

“It was a painful experience hearing that people had a bad impression of what we were, that we were exclusive,” said ELFCO president Leslie Farris. “We are trying to bring people into the store because that is the board’s role. We do want people to know that we are a community grocery, but it is also a business. If that means dropping things that I’m attached to for the advancement of the store, then that is what will have to happen.”

Asked what the vote was, Farris said there was not one per se. She explained that for the board to act on an issue such as this, one “solidified voice” must be established.

The board’s decision to rename the store in the public forum was largely based on a study by the National Cooperative Grocers Association that found that only 14 percent of natural food consumers actively seek out a cooperative model health food store. The study further showed that roughly 55 percent may want to improve their community but have little or no understanding of the cooperative business model. Another 30 percent of natural foods consumers deliberately avoid shopping at co-ops. A key finding is that a substantial number of people from both groups are under the impression that non-members can’t shop at a co-op.

Since the arrival in greater Lansing of the Better Health Store and Foods For Living, ELFCO has encountered further difficulty in attracting new customers. The board hopes a name change will help draw the ill-informed 55 percent, and even some of the co-op-averse 30 percent. Once inside the store, the board hopes, new customers will realize the benefits of a cooperatively run business model and return to shop.

Farris hopes that newcomers will also embrace the guiding principles of the International Cooperative Alliance. “They arrive and get the feel that it’s a family we have here,” she explains. “Then we can educate them and show them that this is not a corporation seeking to benefit individual interests but about improving the community.”

Despite the intentions of Farris, some members and employees consider the renaming a bait-and-switch scenario that hides the co-op’s original principles in a futile attempt to compete with other health food stores. ELFCO employee Liz O’Brien said that with a smaller space and less product than other health food stores, the co-op cannot expect to compete in the same way. “We work to support community members who don’t have the financial means,” she explains. “We are the only store to accept EBT Bridge cards [the electronic transfer cards by which state food assistance is processed]. We need to work to build a true community with values supporting each other instead of competing with other stores.”

Farris countered that with the current financial status of the store, it is not possible to fully embrace co-op principles of giving to the community, such as providing grants to non-profit community organizations. Farris also added that the board would like to be able to decrease the amount of hours per week necessary for employees to qualify for benefits.

Allison Singer, who filled the vacant staff seat on the board of directors last week, says the renaming is unnecessary. She said that the co-op’s value statement calls for more communication through functions held at the store and that itself would bring in more business. A viable alternative to renaming, she maintains, would be to step up outreach and education programs that help people throughout the community understand what the co-op represents. She also suggested informational workshops and a general campaign to inform interested community members who may not be aware of the co-op’s presence in the area. “I believe we haven’t tapped the people who care about the co-op,” she says. “I have been talking with community members recently who had no previous knowledge of ELFCO and expressed interest.”

Singer added that the board is seeking to attract a new set of mainstream consumers who don’t know about co-op principles. She says a number of longtime members have voiced alienation by what they perceive as the co-op’s movement in a more corporate direction.

In a November 2004 newsletter detailing the board’s decision to rename the co-op, Farris said these measures have already been tried for “quite some time.” Judging by constant phone calls from potential customers who don’t know the market is open to the public, Farris concluded that previous advertising explaining co-op policies just haven’t drummed up the necessary business.

Finet said the rift between the board and the members arose from a general lack of communication and hopes his petition can help restore a sense of solidarity by creating an inclusive debate. “I think that everybody is involved now, members and the board, and that we want to try to find a pact,” he said. “My intention is to put this to a vote and get people talking about it so that it can be as democratic as possible.”

Multiple sources said the controversy is having some positive effects. Older and long-inactive members have resurfaced to voice their opinions on the subject, and interest has heightened among younger members too.

“The last few member meetings have shown a huge amount of excitement and dedication from the members,” O’Brien said. “This controversy has been very productive.” She also noted a marked increase in membership and a stronger customer presence since news of the controversy has spread.