MANCHESTER, NH – A crowd of about 150 people showed up for “the big reveal” on Monday night at the Waterworks Cafe. After three years of searching, the Manchester Food Co-op board was finally ready to announce the proposed bricks-and-mortar location for the city’s first member-owned food cooperative.
⇒RELATED STORY: Manchester Food Co-op to open at Bedford Harvest Market location
In a unique partnership with Associated Grocers of New England, the food co-op will take over the 19,464-square-foot Harvest Market on Route 101 in Bedford, by July, if they can raise the additional funds needed.
The fact that it’s an operational market with annual sales of $7.3 million means the co-op should be able to reach profitability in about 3½ years – twice as fast as if they were starting from scratch, said Sarah-Marie Cole, President of the co-op’s Board of Directors.
⇒What is a Food Co-op?
A total of $2 million is needed before the co-op can move in. Based on conservative estimates and projections, the Board sees July as an achievable target. Currently there are more than 1,000 co-op members who have each paid $100 per household to join. The board said doubling membership is the next goal.
During the Monday night presentation the board laid out the advantages to moving into a turn-key business, including an existing customer base, equipment, parking and accessibility and the financial feasibility – capital costs for any of the other potential sites would have been about $4 million.
It was also the best opportunity to fast-track profitability for members, said Cole.
The co-op board said as many as 15 site options in and around Manchester were explored, but based on availability and market data, the Bedford site was an opportunity they couldn’t ignore.
Since launching the idea for a food co-op in 2010 the marketplace has shifted considerably toward organic and local. While this is a plus for running a successful co-op, it also means in five years other competitors have started moving in to satisfy the demand for fresh and local foods – including Market Basket, Whole Foods, Trader Joe’s, Fresh Market.
Associated Grocers President and CEO Michael Bourgoine said as soon as he learned about the Manchester Co-op he saw the partnership as a win-win, for both the co-op and his small cooperative grocery distribution company.
Bourgoine said he informed all of his 100 full- and part-time employees on Monday of the plan to convert the market into a co-op.
“They were very acceptable of it. They needed to hear what we were going to do for the future with the store because they can see what’s going on in the community, and the marketplace,” Bourgoine said.
Although the arrival of Market Basket in Bedford has not hurt his business, he says Whole Foods likely would. However, the changeover to a community-owned co-op will be the true selling point –delivering locally sourced and produced items is exactly what consumers are demanding, and no chain market can deliver like a co-op, Bourgoine said.
He hopes that those who wanted a market within the city limits will see beyond the zipcode and grasp the potential for growth, as well as for community-building.
Part of the plans for the renovated market includes a bakery, cafe, and a space for community meetings, educational workshops and cooking classes.
“I’m sure there will be those who are disappointed in the location, but when you look at all the effort this board put in to try and find a Manchester location, and then to get our Bedford store for the kind of deal we’ve worked out just makes so much sense,” Bourgoine said.
“Another part I liked was that not only am I giving our employees an opportunity to continue to be employed, but also they have a chance to grow and prosper – also become member-owners if they want to be,” Bourgoine said.
Initially, AGNE was approached by the co-op as a supplier, but then Bourgoine presented the board with a plan for converting the existing Harvest Market into a community co-op. Months of meetings followed.
The board also has hired a General Manager for the market, New Hampshire native Patrick Neily, who recently resigned from his post as General Manager of Just Food Co-op in Minnesota. According to a post by the Just Food Board of Directors, Neily helped the Minnesota co-op grow from $5 million in sales in 2012 to $6.2 million in 2015.
⇒When will we get a Manchester store? and more FAQs.
Shannon Beaumont and Joanne Powers of Manchester attended the meeting, and said they were excited about the forward progress of the co-op.
Beaumont added that she had some reservations about the co-op not being in Manchester, and that it might be “a little hard to get to,” but Powers said they are supporters of the project, and will “make it work.”
“Four miles from Manchester – how can you go wrong?” Powers said.
Also “extremely excited” was Janine Woodworth of Manchester.
“That is a wonderful location, and I love the store as it is now, so it will be so much better as a co-op. It doesn’t really matter to me that it’s not going to be in Manchester. It’s the idea behind it that’s important,” Woodworth said.
Mariel Sinkov of Bedford said she does have concerns.
“Given the circumstances, I can see this was an offer that was too good to pass up, and so I see it as a good decision – things like that don’t just fall from the sky – you have to take it,” Sinkov said. “My concern is with the 400-plus Manchester-proper members, who were looking at this as a Manchester food co-op. I’m worried that from a loyalty standpoint, or from a public relations point of view, that needs to be addressed so that population doesn’t feel neglected.”
⇒Those interested in joining the co-op or members with questions should contact a board member at info@ManchesterFood.Coop or engage via Facebook.
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