The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The Co-operative Food Group Ltd
& It’s Future
Local Choice Wholesale and Retail Alternative
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The Vision
• Sustainable wholesale supplier for members
Goals
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Alternative buying opportunity
Local choices
Bridge national suppliers
Reduce cost of doing business
Co-op to co-op business
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
Formation
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30th January 2013
Newcastle
6 members
Board
• Peter Trappel ,Mark Garner, John Mannering and
Richard O’Leary
• Management team
• Damien Bussey
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The Plan
• Share capital of $1000.00 per member
• Member to be food retail store owner
• Store can be owned or leased or a
co-operative
• Loyalty contribution of $100.00 per week per
store, indexed
• Loyalty rebates and dividends
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
First twelve months of trading
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40 members - 20 members pending
56 stores - 39 stores pending
Grocery and produce supplies
Local & Metcash accounts for supply
In excess of 100 suppliers
$3.1million, turnover,$295000.profit
Planned 5% rebate
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The Operations
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Located at the Newcastle Markets, Sandgate
Local, regional and city produce suppliers
Regional and national grocery suppliers
Major Co-operative suppliers for produce in
particular
• Long term leases and supply agreements
negotiated
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
Staffing
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General Manager
Produce Buyer
Administration Manager
Support staff for
Grocery and Produce
• All up 3 full time, 5 part time
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
NOW:
• 45 Members
• 60 Stores
• In Excess of 110 suppliers
• 5% Rebate
• 3% Dividend
• Revenue - $9,340,753.61
• Net Profit - $113,388.08
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The Operations
• Produce Warehouse - Newcastle Markets,
Sandgate & Sydney Markets, Sydney.
• Retail – Kempsey Supa IGA
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
Staffing
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Buying Manager
Produce Buyer
Retail Manger
Administration Officer
Support staff for
Grocery and Produce
• All up 8 full time, 6 part time
& 26 Casual
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The future
• Over half the stores supplied have co-op supplied
produce.
• Being a major account with suppliers, including
Metcash gives better outcomes for members.
• More retail opportunities come before the board
each month, including co-op store ownership and
market trends in overseas established cooperative markets, lets look at Co-operative
Group UK as a case study
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
THE UK, IRELAND & FRANCE EXPERIENCE
Both recent UK, Ireland and France trips have
been around the marketing and growth of Cooperatives – a marketing edge. The “Cooperative Brand” developing rapidly in the UK
gives me confidence to state emphatically that it
is ‘time’. We are at the edge – to go forward. We
will need to defend our core values and the seven
basic principles of our Co-operatives. These
values and principles can be applied to all
organisations. The way is clear - united we stand
and survive – divided we fall and fail. Our small
community Co-operatives based in regional
Australia need strong leadership with a common
binding theme – co-operation can be that theme.
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
Whether it be our valley community needs,
regional based agricultural needs, customer
choice based on a strong independent
locally owned retail stores, low cost
housing, affordable education at all levels in
close proximity to regional centres, good
transport and distribution to hubs, other
social, economic and cultural needs. We
need values based on an ethical stance
these include • Honesty
• Openness
• Social responsibilities
• Caring for others
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
How are the independent businesses
surviving, competing and growing in the
UK and does this have any relevance to
our regional businesses and their local
regional and global markets. The two
major industries that I studied while
overseas were agriculture and food retail,
this included supply issues and inputs
such as utility costs.
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
Agriculture and Food Retail
The UK, Ireland and France have small farms
but they are very productive, due to their
selected markets, government subsidies and
low farm gate price manipulation. This is in
contrast to the Australian scene. Four major
UK supermarkets, 80% of market food sales
compared to Australia’s 2 majors with same
percentage share. Our supermarket giants
also have substantial fuel, liquor and gambling
incomes.
Most fresh produce sales on a local, regional
or domestic base are supply cost set by this
market. The international market has other
complications such as transport subsides and
government including EU market, control
industry free trade etc.
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
Organic fresh needs to develop the competitive edge –
just the same as other retail products. Display, lighting,
labelling, customer education, accountability,
guarantee of message and truth in shelf talk. To deliver
high quality products consistent with promise needs to
cover volume, price and adequate return to supplier, in
a nutshell, safety, quality and reliability. This outcome
will only happen with teamwork, cooperation,
knowledge, strong market awareness and potential.
As a group we need to maximise volumes into
particular markets to grow, best priced and consistent
supply. This in turn gives confidence to the buyers and
their retailers that they can rely on this producer or
retailers organisation to supply for the contract or
throughout the year.
Transportation, storage and other logistical supply
outgoings will also follow if producers act as one and
don’t compete with each other for the same market or
valuable service resources.
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The brand is important as mentioned ‘The
Co-operative Brand’ or other such brands
as organic…Macleay…Coffs….Barrington
Beef, etc, gives buyers the same
confidence and quality in supply – truth in
traceability etc. Overseas the big players
get bigger, the small players get
organised. Area and location trading is
important – I saw many examples –
Australian wine, Irish lamb, New Zealand
lamb, Capilano Australian Honey, British
beef, Wexford strawberries, etc. Food
mile is raising its head in the EU countries
as well, this does not go well for
Australian exports, however gives us an
advantage in our local, regional and
domestic market.
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The Co-operative Group that owns the Co-operative brand works
on the same principles as our Co-operatives in particular the 6th
Principle.
6th Principle
Co-operation among Co-operatives :
World wide need to strengthen Co-operative values and principles,
it is the responsibility of every Co-operative to support and add
value to the movement.
The message “The Co-operative good for everyone. Why looking
good is everyone’s business”.
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The Brand Components
Rewarding
Community
Constant quality
Championing
Trustworthy
The Brand Proposition
Successful business with integrity
The Brand Personality
Open
Decent
Ambitions
Co-operative
Friendly
Healthy
Brand Essence
Changing business for good
Can colour be emotional?
The whole delivery is to a
colour response and its
emotional attachment.
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
If we unite as one, be consistent in
supply and quality, have truth in labelling
and guarantee our shelf talk, we will be
able to hold our own and grow in this
consumer driven market. There is no
place for poor marketed products or
services in this market place.
The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
• A great opportunity taken
• A real need for food wholesale alternative
• Includes grocery, general merchandise,
produce, fish and services such as display,
marketing and local production partnership
formations
• Building NSW now, however a national future
• Co-operatives have a place in commerce
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
But the principles, values and ethics are vital
for Co-operatives.
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
CO-OPERATIVE VALUES AND PRINCIPLES
Principles
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Voluntary & open membership
Democratic member control
Member economic
participation
Autonomy and independence
Education, training &
information
Co-operation among cooperatives
Concern for the community
Values
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Self help
Self responsibility
Democracy
Equality
Equity
Solidarity
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
CO-OPERATIVE VALUES AND PRINCIPLES
Principles
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Values:
Voluntary & openEthical
membership
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Democratic member control
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Member economic
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• Openness
participation
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Autonomy and independence
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• Honesty
Education, training &
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• Social Responsibilty
information
Co-operation among
co• Caring
for Others
operatives
Concern for the community
Values
Self help
Self responsibility
Democracy
Equality
Equity
Solidarity
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The Co-operative Food Group Ltd
A MARKETING EDGE – THE CO-OPERATIVE WAY
The Co-operative Food Group Ltd
& It’s Future
Local Choice Wholesale and Retail Alternative
25