For the last few months, the Board of Directors and the Collective
Management Team (CMT) have been reviewing a proposal to reorganize the
national system of retail grocery cooperatives. One object of the proposal
is to give coops greater clout in negotiating a supply agreement with our
primary supplier and to cooperate in business services to increase
awareness of coops nationally. How will this affect you? It will save you
money on many of your groceries, but it may increase the liability of the
Coop and it might affect who we are and how we fulfill our mission.
Currently HWFC belongs to Cooperative Grocers Association North East
(CGANE), a regional association of 21 coops, which is primarily an
association of general managers. CGANE and eight other regional coops
belong in turn to the National Cooperative Grocers Association (NCGA).
NCGA runs the CAP program of monthly sales, publishes the Cooperative
Grocer magazine, and maintains a listserv for local coop management.
The NCGA board is now proposing a reorganization that would dissolve
the regional associations and give direct membership in the national
organization to 94 local coops. The proposal was written by Cooperative
Development Services. In January, Cindee Lolik, operations and
administrative coordinator for the CMT, and Lynne Lekakis, Board
president, attended a CGANE meeting to discuss the proposal, and Cindee
flew to California in February to attend the national meeting.
Reaction to the proposal by the Board and the CMT is mixed. HWFC has
benefited significantly from the CGANE supply agreement with UNFI and
would have to participate with NCGA in the national purchasing program to
keep those price savings on national brands. There are however, some
questions. The proposal does not include a business plan so it is not
clear what our liabilities would be in the purchasing program nor what
will happen to our equity in CGANE or in NCGA.