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AUGUST 2018

The August edition of Co-op News looks at how the co-operative movement can grow - but also thrive. Plus case studies from the US worker co-op movement, and how co-ops are embracing spoken word to tell the co-op story.

The August edition of Co-op News looks at how the co-operative movement can grow - but also thrive. Plus case studies from the US worker co-op movement, and how co-ops are embracing spoken word to tell the co-op story.

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<strong>AUGUST</strong> <strong>2018</strong><br />

GOING FOR<br />

GROWTH<br />

How to help the<br />

movement thrive<br />

Plus ... 150 years of<br />

Radstock ... Using spoken<br />

word to tell the co-op<br />

story ... Lessons from US<br />

worker co-ops<br />

ISSN 0009-9821<br />

9 770009 982010<br />

01<br />

£4.20<br />

www.thenews.coop


The <strong>2018</strong> Co-operative Press<br />

Annual General Meeting<br />

Saturday 1 September <strong>2018</strong><br />

Saturday 1st September <strong>2018</strong>, 4.30pm Room 7332, Stoddart Building,<br />

Sheffield Hallam University Business School (To coincide with the <strong>2018</strong><br />

UKSCS conference)<br />

In accordance with Rule 20 of the Co-operative Press Rules, any member<br />

may submit a proposal to the Annual Meeting of members in writing to<br />

the Secretary. The timetable is as follows:<br />

Monday 6 August <strong>2018</strong>:<br />

Closing Date for Receipt of Proposals<br />

Monday 20th August <strong>2018</strong><br />

Agenda and Proposals sent out to members<br />

Monday 27th August<br />

Closing date for receipt of amendments<br />

With regard to amendments to any proposals (as stated in Rule 21),<br />

any member may send to the directors any amendment to any proposal<br />

appearing on the agenda or any amendment to any matter forming part<br />

of the business of the meeting, and provided such amendment be<br />

received by the secretary prior to the Annual Meeting, it shall be circulated<br />

to members as soon as is practicable as an additional business paper for<br />

consideration at the meeting.<br />

Please note that by submitting a proposal, members are committing<br />

themselves to attend the Annual Meeting if their proposal is accepted<br />

onto the Agenda.<br />

The Secretary<br />

Co-operative Press Ltd, Holyoake House,<br />

Hanover Street, Manchester, M60 0AS


news<br />

Going for growth: How to help our<br />

co-operative movement thrive<br />

CONNECTING, CHAMPIONING AND<br />

CHALLENGING THE GLOBAL CO-OP<br />

MOVEMENT SINCE 1871<br />

Holyoake House, Hanover Street,<br />

Manchester M60 0AS<br />

(00) 44 161 214 0870<br />

www.thenews.coop<br />

editorial@thenews.coop<br />

EXECUTIVE EDITOR<br />

Rebecca Harvey<br />

rebecca@thenews.coop<br />

INTERNATIONAL EDITOR<br />

Anca Voinea | anca@thenews.coop<br />

DIGITAL EDITOR<br />

Miles Hadfield | miles@thenews.coop<br />

DESIGN:<br />

Keir Mucklestone-Barnett<br />

DIRECTORS<br />

Elaine Dean (chair), David Paterson<br />

(vice-chair), Sofygil Crew, Gavin<br />

Ewing, Tim Hartley, Beverley Perkins<br />

and Barbara Rainford. Secretary:<br />

Richard Bickle<br />

Established in 1871, Co-operative<br />

News is published by Co-operative<br />

Press Ltd, a registered society under<br />

the Co-operative and Community<br />

Benefit Society Act 2014. It is printed<br />

every month by Buxton Press, Palace<br />

Road, Buxton, Derbyshire SK17 6AE.<br />

Membership of Co-operative Press is<br />

open to individual readers as well as<br />

to other co-operatives, corporate bodies<br />

and unincorporated organisations.<br />

The Co-operative News mission statement<br />

is to connect, champion and challenge<br />

the global co-operative movement,<br />

through fair and objective journalism<br />

and open and honest comment and<br />

debate. Co-op News is, on occasion,<br />

supported by co-operatives, but<br />

final editorial control remains with<br />

Co-operative News unless specifically<br />

labelled ‘advertorial’. The information<br />

and views set out in opinion articles<br />

and letters do not necessarily reflect<br />

the opinion of Co-operative News.<br />

@coopnews<br />

cooperativenews<br />

How did you find out about co-operatives? Who told you?<br />

For some, it’s a family affair, with generations of involvement in local<br />

societies. For others, it’s work-related. For others still, lessons in co-operation<br />

are learned form a young age, through involvement in the Woodcraft Folk – or,<br />

for a lucky few, through education.<br />

But co-ops aren’t yet part of the mainstream national consciousness – and at<br />

a time when the political, social and economic landscape is ripe to embrace<br />

a co-operative philosophy, this is a rather large problem. So what can we do<br />

about it?<br />

A report from the New Economics Foundation sets out a series of practical<br />

ways a Labour government could double the co-operative economy, while<br />

Platform 6, an online initiative, is looking to consolidate knowledge and<br />

expertise around co-operative development (p36-37).<br />

That’s a start. But students at the Co-operative Academy in Leeds go further<br />

and suggest an ‘induction day’ for the whole population, where people can<br />

learn about co-operation and how it has the potential to impact lives (p41).<br />

They say that current marketing doesn’t reach them: “All the adverts for co-ops<br />

are for food and funeralcare”– and are on TV, which they never watch anyway.<br />

What about new ways of telling the co-operative story, then? Co-operatives<br />

UK and Nationwide have both recently embraced spoken word storytelling,<br />

working with poets such as Jo Bell and Isaiah Hull to create a new kind<br />

of narrative (p44-45). This issue we have also spoken to some co-op<br />

communicators from around the movement who give their storytelling tips<br />

(p42-43), and hear from Wendy Carter, who has joined Co-operatives UK as<br />

the sector body’s head of communications and marketing (p22-23).<br />

There are lessons to be learned from America, too, where the population of<br />

worker co-operatives has increased from 350 to nearly 600 in just over 10<br />

years (p38-40). In this case, “it was a right timing / perfect storm kind of<br />

thing,” says Esteban Kelly, executive director of the US Federation of Worker<br />

co-ops. “There was an alignment of enough weird things that sparked at a<br />

certain point.”<br />

So let’s create our own spark and change the way we tell our stories. As<br />

Esteban says: “we need [a] nimbleness to help people expand the frame of<br />

what people actually think of as co-operatives.”<br />

REBECCA HARVEY - EXECUTIVE EDITOR<br />

Co-operative News is printed using vegetable oil-based<br />

inks on 80% recycled paper (with 60% from post-consumer<br />

waste) with the remaining 20% produced from FSC or PEFC<br />

certified sources. It is made in a totally chlorine free process.<br />

<strong>AUGUST</strong> <strong>2018</strong> | 3


Chief Executive<br />

Central England Co-operative is proud of its heritage as a successful,<br />

member-owned, member-controlled co-operative business which is committed<br />

to co-operative values and principles.<br />

Central England Society, based in Lichfield is one of the largest and most successful independent co-operative<br />

businesses in the UK - with a turnover approaching £1bn, employing over 8,500 colleagues and operating<br />

a diverse trading portfolio ranging from food retailing, petrol stations and funeral services to travel shops<br />

and property investment.<br />

After nine years in post, the current Chief Executive, Martyn Cheatle, has announced his intention to<br />

retire. During his tenure, Central England has gone through significant expansion and change whilst maintaining<br />

a consistent track record of both financial and non-financial achievements against the backdrop of a rapidly<br />

changing and intensely competitive landscape.<br />

The new Chief Executive will be responsible for developing the strategy and championing our co-operative ethics<br />

enabling the Society to make a positive difference for its members, for the communities in which it trades and<br />

ensuring the continuation of our purpose beyond profit.<br />

This highly visible role calls for background and experience in running a multi-site consumer facing business,<br />

coupled with a strong commercial track record and demonstrable success in developing strategies for growth<br />

and change programmes. Candidates will need to present credentials as a CEO/MD or in a senior COO,<br />

CFO or commercial role within a complex business of scale.<br />

The remuneration for this position will be commensurate with the roles and responsibilities.<br />

The Society aims to represent the geographical, gender, cultural and ethnic diversity<br />

of the communities it serves.<br />

For further information please contact Nicola Kenyon, Warren Partners on 0845 261 0600.<br />

To apply for the role, please submit a short covering letter demonstrating how you meet the requirements<br />

of this role along with your CV and current salary details quoting reference number:<br />

JSWC5860 to jw@warrenpartners.co.uk<br />

The closing date for applications is<br />

Friday 24th August <strong>2018</strong><br />

Warren Partners has been chosen as our professional search advisers throughout this process.


Radstock ... Using spoken<br />

word to tell the co-op<br />

story ... Lessons from US<br />

worker co-ops<br />

ISSN 0009-9821<br />

01<br />

9 770009 982010<br />

THIS ISSUE<br />

CLOCKWISE FROM FAR LEFT<br />

Emma Bridge, CEO of Community Energy<br />

England, at the <strong>2018</strong> Community Energy<br />

Conference (p26-27); Radstock Co-operative<br />

celebrates its 150th anniversary (p30-31);<br />

Isaiah Hull is one of the poets working with<br />

co-ops to create new narratives (p44-45);<br />

and Opportunity Threads is one of a growing<br />

number of US worker co-ops (p38-40).<br />

news Issue #7298 <strong>AUGUST</strong> <strong>2018</strong><br />

Connecting, championing, challenging<br />

<strong>AUGUST</strong> <strong>2018</strong><br />

GOING FOR<br />

GROWTH<br />

How to help the<br />

movement thrive<br />

Plus ... 150 years of<br />

£4.20<br />

www.thenews.coop<br />

22-23 MEET... WENDY CARTER<br />

Co-operatives UK’s new head of<br />

communications and marketing on<br />

the need to tell co-op stories and the<br />

potential for growth in the movement<br />

25 GREENBELT<br />

David Alcock of Anthony Collins Solicitors<br />

on co-operation at Greenbelt <strong>2018</strong><br />

26-27 COMMUNITY ENERGY<br />

CONFERENCE <strong>2018</strong><br />

This year’s event covered issues such as<br />

technology, inclusion, heat-sharing<br />

and regulations<br />

28-29 CONGRESS<br />

Meet the winners of the <strong>2018</strong><br />

Co-operatives of the Year Awards<br />

30-31 RADSTOCK AT 150<br />

A celebration of the co-op formed in<br />

1868 to serve the Somerset town’s mining<br />

community<br />

36-37 PLATFORM 6<br />

Growing co-ops: Helping the movement<br />

seize its moment<br />

38-40 US WORKER CO-OPS<br />

What has caused the number of US worker<br />

co-ops to nearly double? Interview with<br />

USFWC’s Esteban Kelly<br />

41 BACK TO THE CHALK BOARD<br />

How co-ops are engaging with schools –<br />

Plus thoughts from students at Leeds Co-op<br />

Academy<br />

42-43 MARKETING CO-OPERATION<br />

Tips from co-op communication specialists<br />

on how to tell your story<br />

44-45 NEW WAYS OF STORYTELLING<br />

The rise of spoken word narrative<br />

46-47 MARKETING SHARE OFFERS<br />

Tips from sustainable banking specialist<br />

Triodos<br />

COVER: Jo Bell is part of<br />

a wave of poets working<br />

with co-ops and mutuals<br />

to present a new kind of<br />

narrative. (Image: Lee Allen)<br />

Read more: p44-45<br />

33-47 GROWING THE CO-OPERATIVE<br />

MOVEMENT<br />

34-35 DOUBLING THE CO-OP ECONOMY<br />

The News Economics Foundation on<br />

how a Labour government could meet<br />

its manifesto commitment<br />

REGULARS<br />

6-16 UK updates<br />

17-21 Global updates<br />

24 Letters<br />

48 Reviews<br />

<strong>AUGUST</strong> <strong>2018</strong> | 5


NEWS<br />

BREXIT<br />

Co-op movement voices concern over Brexit uncertainty<br />

p Arla warns an end to frictionless trade could mean delays for dairy shipments<br />

Dairy co-op Arla Foods UK says<br />

consumers could face less choice and<br />

higher prices if Brexit brings an end to<br />

frictionless trade with the EU.<br />

It made the warning at a London<br />

School of Economics (LSE) event in July,<br />

arguing that non-tariff barriers to trade<br />

and restricted access to labour would<br />

reduce the availability of butter, yoghurts<br />

and cheese.<br />

The government’s White Paper on<br />

Brexit sets out proposals to facilitate<br />

future trade with Europe. But it has<br />

already been amended by hardline<br />

Conservative backbenchers, and has yet<br />

to be agreed with the EU.<br />

A report from the LSE, The impact<br />

of Brexit on the UK dairy sector, warns<br />

that any friction or limitations on access<br />

to key skills will mean UK consumers face<br />

less choice, higher prices, and potentially<br />

lower food standards.<br />

Arla Foods UK, part of a pan-European<br />

co-op owned by 11,200 dairy farmers,<br />

around 2,400 of whom are British, said<br />

it could become much more difficult<br />

to import dairy products from Europe,<br />

leading to a shortage of dairy staples and,<br />

in particular, speciality cheeses.<br />

It also fears escalating pressure on<br />

costs, and ultimately increased consumer<br />

prices for dairy goods. And if ways are<br />

found somehow to ramp up production<br />

and cut farm prices, Arla says this would<br />

be at the cost of undermined standards.<br />

It adds that there will also be impacts<br />

throughout the supply chain, which<br />

could be exacerbated by a shortage<br />

of vets, lorry drivers and farm workers,<br />

and increased times for customs<br />

inspections at UK ports.<br />

Arla’s UK managing director Ash<br />

Amirahmad said: “Any disruption means<br />

that if we don’t get the practicalities of<br />

Brexit right we will face a choice between<br />

shortages, extra costs that will inevitably<br />

have to be passed on to the consumer or<br />

undermining the world-class standards<br />

we have worked so hard to achieve.<br />

“Our dependence on imported dairy<br />

products means that disruption to the<br />

supply chain will have a big impact. Most<br />

likely we would see shortages of products<br />

and a sharp rise in prices, turning every<br />

day staples, like butter, yoghurts, cheese<br />

and infant formula, into occasional<br />

luxuries. Speciality cheeses, where<br />

there are currently limited options for<br />

production, may become very scarce.<br />

“Brexit might bring opportunities to<br />

the UK industry in the long term, but in<br />

the short and medium term we cannot<br />

just switch milk production on and off.”<br />

Arla’s warning follows comments last<br />

month from Sir Charlie Mayfield, chair of<br />

the John Lewis Partnership.<br />

The employee-owned retailer warned<br />

its second-half profits would be “close to<br />

zero” and announced the closure of five<br />

of its Waitrose stores. Four of these have<br />

been taken over by the Co-op Group and<br />

the fifth by Aldi.<br />

The profits warning was put down<br />

to extra investments on IT and other<br />

projects, but financial news service<br />

Bloomberg said the announcement<br />

“continues a run of bad news from UK<br />

store chains. Brexit is squeezing their<br />

costs and prompting consumers to keep<br />

closer tabs on budgets”.<br />

Sir Charlie told reporters: “A no-deal<br />

Brexit is, in my view, a pretty much<br />

unthinkable scenario”, and warned that<br />

retail is suffering “a major shift”.<br />

However, there is optimism in the<br />

movement that a no-deal scenario will<br />

be avoided. Alison Graham, European<br />

affairs executive at the Irish Co-operative<br />

Organisation Society (ICOS), said: “We’re<br />

still hopeful that a no-deal won’t happen.<br />

While there is a need to prepare for a<br />

no-deal scenario this shouldn’t be seen<br />

as an inevitable outcome. If that does<br />

happen we’ll be calling for an extension<br />

of Article 50 because a no-deal situation<br />

would lead to utter chaos.”<br />

Uncertainty over the future of the Irish<br />

border has sparked concerns for business<br />

supply chains across the island but Ms<br />

Graham said ICOS had been holding<br />

meetings with the European Commission<br />

over Brexit.<br />

Meanwhile, a report by the Wales<br />

Co-operative Centre calls for more support<br />

for the country’s agri-co-op sector after<br />

Brexit. It warns the Welsh sector has<br />

only 22 agri-co-ops, while Scotland and<br />

Ireland each have more than 60.<br />

Derek Walker, chief executive of the<br />

Wales Co-operative Centre, said: “We<br />

have some well-established co-operatives<br />

in Wales but we need to work harder with<br />

organisations who are engaged with<br />

the agri-food sector and help develop<br />

programmes where co-operation and<br />

collaboration are key features.<br />

“With more and more uncertainty over<br />

future funding for the industry after the<br />

UK leaves the EU, could farmers look<br />

at cutting costs by collaborating with<br />

one another in vital business areas like<br />

purchasing, processing and marketing?”<br />

The research, funded by the Welsh<br />

government and the European Regional<br />

Development Fund, involved interviews<br />

with agriculture stakeholders and<br />

co-op businesses.<br />

6 | <strong>AUGUST</strong> <strong>2018</strong>


ENERGY<br />

Bond issue for community solar<br />

The <strong>2018</strong> Co-operative Press<br />

Annual General Meeting<br />

Saturday 1 September <strong>2018</strong><br />

4.30pm<br />

Room 7332, Stoddart Building, Sheffield<br />

Hallam University Business School<br />

(Running alongside the <strong>2018</strong> UKSCS conference)<br />

Burnham and Weston Energy, a Somerset community interest<br />

company that owns and operates one of the largest community<br />

solar farms in the UK, is raising £4m in investment funds through<br />

a bond issue.<br />

The investment, launched on Triodos Bank’s crowdfunding<br />

platform, will allow the company to return around £3m in<br />

surplus profits to the local community over the remaining 23-year<br />

lifespan of the project, a 9.3MW community solar farm.<br />

Half the surplus will be used to support the Sunshine Fund,<br />

a new grant fund for local projects to be managed by the local<br />

charitable trust Somerset Community Foundation. The other half<br />

will help households struggling to pay their energy bills through<br />

the Centre for Sustainable Energy (CSE).<br />

The bonds will pay an initial interest rate of 5% a year, which<br />

will rise every year with inflation. The initial investment will<br />

be repaid in instalments over 18 years. As with all investments,<br />

interest payments are not guaranteed and capital is at risk. The<br />

bonds are eligible to be held in a Triodos Innovative Finance ISA.<br />

The minimum investment in the scheme is £200; investors will<br />

also become owners of Burnham and Weston Energy.<br />

More information at www.triodoscrowdfunding.co.uk<br />

See Triodos interview, pages 46-47<br />

Energy co-op snaps up private assets<br />

Community Power Cornwall (CPC) has bought private firm West<br />

Country Renewables for approximately £1.34m.<br />

The community-owned energy co-op hailed the move as “a<br />

significant step for community ownership of energy generation<br />

in Cornwall”. It says the transfer of assets from private to<br />

community ownership is becoming a more viable method for<br />

expanding community energy in the UK.<br />

The sale brings into community ownership five solar arrays<br />

located at Mount Hawke Skate Park, St Agnes Railway Yard, St<br />

Agnes Presingoll Farm and Scarne Industrial Estate, totalling<br />

500kW; and three 11kW wind turbines across the south west.<br />

CPC estimates that this transfer will retain £2.5m in the Cornish<br />

economy before any multiplier effect.<br />

Clayton Elliott of CPC said: “It is great to have kept WCR in local<br />

community ownership as it would have been a great shame if the<br />

money flows that WCR derives from Cornish natural resources<br />

had been lost from the local economy.”<br />

Community Energy Conference report – pages 26-27<br />

In accordance with Rule 20 of the<br />

Co-operative Press Rules, any member<br />

may submit a proposal to the Annual<br />

Meeting of members in writing to the<br />

Secretary. The timetable is as follows:<br />

Monday 6 August <strong>2018</strong>:<br />

Closing Date for Receipt of Proposals<br />

Monday 20th August <strong>2018</strong><br />

Agenda and Proposals sent out to members<br />

Monday 27th August<br />

Closing date for receipt of amendments<br />

With regard to amendments to any proposals<br />

(as stated in Rule 21), any member may send<br />

to the directors any amendment to any<br />

proposal appearing on the agenda or any<br />

amendment to any matter forming part of<br />

the business of the meeting, and provided<br />

such amendment be received by the<br />

secretary before the Annual Meeting, it<br />

shall be circulated to members as soon as is<br />

practicable as an additional business paper for<br />

consideration at the meeting.<br />

Please note that by submitting a proposal,<br />

members are committing themselves to<br />

attend the Annual Meeting if their proposal<br />

is accepted onto the Agenda.<br />

Secretary<br />

Co-operative Press Ltd, Holyoake House,<br />

Hanover Street, Manchester, M60 0AS<br />

<strong>AUGUST</strong> <strong>2018</strong> | 7


WORKER CO-OPS<br />

Life at 40: Food co-op<br />

weaves its values into<br />

the fabric of community<br />

Honeysuckle, a wholefoods co-op store<br />

in Oswestry, Shropshire, is celebrating its<br />

40th anniversary.<br />

The store, which sells ethical, healthy<br />

foods including fresh fruit and veg, herbs,<br />

dried, packet and tinned foods, is holding<br />

a week of celebrations, with bunting,<br />

cake, special chocolate from Forever<br />

Cacao and photos of its story.<br />

Honeysuckle’s Gemma Syrett-Judd says<br />

the original group, who set the store up in<br />

July 1978, chose the worker co-op model<br />

“because of their political motivation –<br />

they didn’t want to be in a conventional<br />

business, they wanted to be a co-op.<br />

Also, they were young with families and it<br />

fitted in with that, it allowed them to have<br />

flexible hours.”<br />

The worker co-op model is a crucial<br />

factor in the shop’s longevity, thinks<br />

Gemma. “It was set up with the basic<br />

principles of the worker co-op and looking<br />

back, that has allowed the shop to survive.<br />

We feel that it wouldn’t be here if it was<br />

a conventional business partnership – it<br />

would probably have been bought out.<br />

“And because we’re a worker co-op<br />

we have a wide spread of expertise in<br />

the organisation – one person joins and<br />

they’re good at accounts, someone else is<br />

good at stocktaking, and so on.”<br />

p Honeysuckle’s team celebrate the store’s milestone<br />

Honeysuckle has recently undergone<br />

changes of membership after years of<br />

stability, as some of the original members<br />

reached retirement. Currently, it has three<br />

members and is looking to recruit a fourth.<br />

“That’s good,” said Gemma, “because<br />

it means we can bring in younger people<br />

– they are enthusiastic and more aware of<br />

new trends. The replacement of members<br />

over time naturally brings in new blood,<br />

new energy, new ideas.<br />

“We know our customers – some have<br />

been with us for 40 years and it makes<br />

you realise how impressive it is that we’ve<br />

been here that long. People who have<br />

always supported us have told us what<br />

Honeysuckle means to them. When the<br />

shop started, wholefoods stores were rare<br />

so for people with those diets and ideals,<br />

we were very good.<br />

“Now those ideas are mainstream it<br />

brings challenges because you realise<br />

what you sell is available everywhere –<br />

but our knowledge and customer service<br />

is not everywhere. And we have more<br />

flexibility than big stores over stock.”<br />

Because Honeysuckle has last so long in<br />

the same place, it has become a fixture in<br />

its community. “A lot of our customers are<br />

at a certain age now,” said Gemma, “and if<br />

they stop coming in, you miss them, so we<br />

check up on them, and check if they need<br />

anything. It’s part of our ethos, of caring<br />

for people in our community.”<br />

RETAIL<br />

Co-ops join forces with celebrity chef<br />

to celebrate the flavours of Scotland<br />

The Co-op Group and Scotmid<br />

Co-op have joined celebrity chef Nick<br />

Nairn to reward the country’s suppliers.<br />

The retailers – which between them<br />

stock more than 1,800 Scottish lines –<br />

are launching the first ever Co-op<br />

Scottish Supplier Awards to recognise<br />

outstanding suppliers.<br />

The awards will also recognise suppliers<br />

who contribute to local life or demonstrate<br />

sustainability in food production.<br />

The youngest Scottish chef to win a<br />

Michelin star in the 1990s, Mr Nairn will<br />

head the judging panel for the awards,<br />

which will be handed out in Glasgow on<br />

12 September.<br />

“I was raised on delicious home grown<br />

Scottish food,” he said, “and I’m thrilled<br />

that my fellow Scots are just as passionate<br />

about buying, cooking and eating Scottish<br />

food as I am. It’s great to see two of our<br />

largest convenience retailers really putting<br />

our national food names in the spotlight.”<br />

The 10 categories are:<br />

Bakery of the Year<br />

Beers, Wines and Spirit Product of<br />

the Year<br />

Best Agricultural Initiative<br />

Fresh Product of the Year<br />

Grocery Product of the Year<br />

Investor in Scottish Communities<br />

Most Sustainable Supplier<br />

New Product of the Year<br />

Own-label Supplier of the Year<br />

Supplier of the Year (Judges’ Choice)<br />

CJ Antal Smith, the Co-op Group’s<br />

trading director, said: “Food provenance<br />

means everything to our customers and<br />

members here in Scotland – they’re<br />

passionate about buying great quality,<br />

delicious home-grown fare.”<br />

Stephen Brown, local sourcing manager<br />

at Scotmid, said: “The awards provide<br />

us with a great opportunity to shine the<br />

spotlight and recognise excellent local<br />

produce; ranging from globally recognised<br />

brands to small family businesses.”<br />

8 | <strong>AUGUST</strong> <strong>2018</strong>


EMPLOYEE OWNERSHIP<br />

Can worker-owners<br />

plot a new course for<br />

the UK economy? New<br />

report on £30bn sector<br />

An independent inquiry overseen by a<br />

group of leading business organisations<br />

has found that employee ownership<br />

can help address the “fundamental<br />

challenges” facing the UK economy.<br />

The Ownership Effect Inquiry was led<br />

by the Employee Ownership Association<br />

(EOA) and supported by the eaga Trust<br />

and the John Lewis Partnership with the<br />

academic support of Cass and Manchester<br />

Alliance Business Schools.<br />

The panel took evidence from more<br />

than 100 employee-owned businesses<br />

and concluded an expansion of the<br />

model would boost the economy in three<br />

NSORS AND ways: SUPPORTERS improving productivity; creating<br />

resilient regional economies; and<br />

improving worker engagement.<br />

Organisations overseeing the report<br />

include the Institute of Directors, the<br />

Institute of Chartered Accountants in<br />

England and Wales, the Federation of<br />

Small Businesses and the Chartered<br />

Management Institute.<br />

It found that the EO sector has a<br />

combined turnover of more than £30bn,<br />

which is growing by 10% each year.<br />

And – in a point also made in the<br />

recent New Economics Foundation report<br />

Co-operatives Unleashed – it calls for<br />

better succession planning for the £519bn<br />

family business sector, where 85,000<br />

firms are sold every year, often with poor<br />

deals. An easier transition to employee<br />

ownership would lead to more secure<br />

futures for workers and communities,<br />

it says.<br />

The report also echoes calls from the<br />

co-operative movement for more coverage<br />

of employee ownership models in<br />

business education.<br />

Baroness Bowles of Berkhamstead,<br />

who chaired the inquiry, said in her<br />

introduction: “The report could hardly<br />

be more topical or relevant at a time<br />

when UK productivity continues to<br />

underperform; the government is<br />

concerned about standards of corporate<br />

governance, low worker influence and<br />

p The report wants a national strategy to boost the sector<br />

engagement, and defaulting public<br />

service conglomerates; and regional<br />

government and business leaders are<br />

concerned about business succession,<br />

resilience and economic growth.<br />

“This report evidences a thriving<br />

and fertile employee ownership sector<br />

that offers positive responses to these<br />

challenges.<br />

“That is not to say employee ownership<br />

is the ‘ideal’ business model, or that its<br />

impact is automatically and universally<br />

transformative. Employee ownership will<br />

be right for some firms, but not others –<br />

and although its benefits can be dramatic,<br />

they must be worked for.”<br />

Recommendations in the report include:<br />

Direct investment by Westminster, with<br />

a capacity-building initiative to create new<br />

EO firms, as has been done in Scotland<br />

and Wales<br />

Pilot projects from the devolved<br />

authorities to support transitions to EO<br />

THE<br />

OWNERSHIP<br />

DIVIDEND<br />

THE ECONOMIC CASE FOR EMPLOYEE OWNERSHIP<br />

A national strategy to foster the growth<br />

of the sector<br />

Extra funding for the government’s<br />

Mutuals Support Programme 2, a scheme<br />

to support public service mutuals<br />

National trade bodies should work with<br />

the EOA to develop training packages and<br />

other support<br />

A more conducive tax environment for<br />

EO businesses<br />

A dedicated minister with clear<br />

responsibility for EO and mutually owned<br />

business models<br />

Regular data collection on the state<br />

of the sector<br />

A more proactive awareness-raising<br />

approach from financial and educational<br />

institutions.<br />

You can download the report at<br />

theownershipeffect.co.uk/<br />

Launch of the NEF’s Co-operatives<br />

Unleashed report – p34-35<br />

<strong>AUGUST</strong> <strong>2018</strong> | 9


CO-OP GROUP<br />

Manchester Co-op<br />

Academy doubles in size<br />

with £18m extension<br />

The Co-operative Academy in Manchester<br />

has doubled in size after the official<br />

opening of a new £18m extension, with a<br />

300-seat theatre, climbing wall, sports pitch<br />

and fitness suite.<br />

The Co-op Group took over Plant Hill<br />

Arts College in 2009, which was then at<br />

the bottom of the national league table<br />

for truancy with a persistent absence<br />

figure of nearly 29%. Under the Group’s<br />

sponsorship, the old school was replaced<br />

with a new purpose-built academy.<br />

This year, Ofsted rated the academy as<br />

“good”, with many features, including<br />

leadership and management, rated<br />

outstanding. Before the Group took over,<br />

pupils were 10 times more likely to skip<br />

school, but attendance figures are now<br />

well above the national average.<br />

Principal Steve Brice said: “The official<br />

opening of the extension marks a very<br />

proud day for the academy.<br />

“Staff and governors are committed to<br />

providing truly outstanding experiences<br />

and outcomes for all students and we<br />

are driven to improve the life chances<br />

p Students at the Manchester Co-operative Academy<br />

of students and add value to the<br />

local community.”<br />

“The academy has gone from strength to<br />

strength in recent years. We are extremely<br />

proud of what we do at the academy and<br />

are delighted that the local authority<br />

approached us to extend the reach of this<br />

to even more young people in the city.<br />

The new building not only gives us much<br />

needed space to develop our offer, but<br />

also allows much larger intakes to benefit<br />

from what we do.”<br />

The Co-op Academies Trust is a charity<br />

controlled by trustees appointed by the<br />

Co-op Group, which gets its day-to-day<br />

funding from the Department for Education<br />

(DfE). It operates 12 academies across<br />

Greater Manchester, Stoke-on-Trent and<br />

West Yorkshire. In April, the Co-op Group<br />

announced it aimed to treble the number<br />

of academies it sponsored to 40 over<br />

the next three years.<br />

The retailer recently allocated £3.6m to<br />

the trust to kick-start the next growth<br />

phase. Pupils can also benefit from work<br />

placements and apprenticeships at the<br />

Co-op Group; it is estimated that 250-<br />

300 candidates from Group-sponsored<br />

academies will join the retailer by 2022.<br />

Frank Norris, director of the trust, said:<br />

“We understand the effect of having a<br />

good school that was previously failing<br />

or weak is immense in regenerating<br />

communities.<br />

“It is testament to all the students,<br />

teachers, support staff and governors that<br />

the DfE had the confidence to support this<br />

major expansion.”<br />

Sounding a sad<br />

note for Co-op<br />

brass band<br />

The Co-op Group is<br />

withdrawing its sponsorship<br />

from the Co-operative<br />

Funeralcare Band and has asked it vacate its current rehearsal<br />

facility in Newhouse in North Lanarkshire.<br />

The band, which has been the Champion Band of Great Britain<br />

twice, and is Scotland’s most successful contesting outfit,<br />

celebrates its 100th anniversary this year.<br />

Former Band chair, Ronnie Tennant, told brass band website<br />

4BarsRest: “Significant changes have occurred within [the<br />

Group’s] business and with the running of the band.”<br />

He said it was “of vital importance that we try to maintain a<br />

link that has given the band a worldwide identity and helped<br />

provide the Co-op with such a positive link to the community.<br />

The Group’s chief executive, Steve Murrells, told the band that<br />

he appreciated their success and did not uphold the decision<br />

lightly. But he said the Group was re-assessing its entire expense<br />

base “from bottom up” to ensure its sustainability.<br />

Welsh membership jumps by 40%<br />

The number of active members of the Co-op Group in Wales has<br />

jumped by 40%, to more than 300,000, since it re-launched its<br />

membership scheme and rebranded in 2016.<br />

Over the same period, the retailer has supported 749 local Welsh<br />

causes through its membership scheme, handing out almost<br />

£1.2m. It says it is also investing in its stores, with plans to recruit<br />

250 new colleagues before the end of the year. The Llandovery<br />

store relaunched last week following a £1m makeover, and the<br />

rest of <strong>2018</strong> will see investments in Ammanford, Pontycymmer;<br />

Wrexham, Llandudno<br />

Junction, Denbigh, Machen,<br />

Llangollen and Hirwaun.<br />

Tina Mitchell, the Group’s<br />

managing director for Wales,<br />

said: “We want our stores<br />

to be at the heart of local<br />

life. Our investment in our<br />

communities is transforming<br />

our stores – ensuring the<br />

Co-op is agile, efficient,<br />

p Tina Mitchell<br />

innovative and relevant.”<br />

10 | <strong>AUGUST</strong> <strong>2018</strong>


Charity drive at Southern Co-op smashes its target<br />

Rolling out the Co-op<br />

brand to Costcutter<br />

The Co-op Group is supplying its ownbrand<br />

goods for sale in Costcutter stores.<br />

The Group made a deal with the<br />

convenience retail group last year which<br />

sees it become its exclusive wholesale<br />

supplier. This fills the gap left by the<br />

collapse of Costcutter’s previous supplier,<br />

wholesale giant Palmer and Harvey.<br />

The rollout, which began on 18 July,<br />

will see 800 own-brand products appear<br />

on shelves over the next few months,<br />

followed by another 1,200 early next year.<br />

There is also the opportunity for<br />

Costcutter members to become Co-op<br />

franchise stores. This concept is being<br />

piloted in a company-owned store in<br />

Yorkshire and will be tested further in<br />

additional stores over the coming months.<br />

Meanwhile, it has been reported in the<br />

press that the Co-op Group had a £15m<br />

takeover bid for Costcutter rejected by its<br />

owner, Costcutter Supermarkets Group.<br />

Both the Co-op Group and Costcutter<br />

declined to comment on the reports.<br />

Tech guru gets on board<br />

Technologist and entrepreneur Rahul<br />

Powar has been appointed independent<br />

non-executive director at the Co-op Group.<br />

Mr Powar is founder and chief executive<br />

of Red Sift, a base service product<br />

specialising in cyber-security. Previously<br />

he held key roles at tech companies<br />

Shazam Entertainment and Method, and<br />

founded two other companies – mobile<br />

data platform Apsmart in 2009; and radio<br />

discovery app MPme in 2012.<br />

Group chair Allan Leighton said:<br />

“Digital technology will play a key role in<br />

driving our commercial ambition, while<br />

helping us to connect more with the<br />

communities where we operate. Rahul<br />

brings with him a wealth of experience<br />

and will be hugely valuable as we progress<br />

and execute our plans.”<br />

Epic abseils, sweltering marathon runs<br />

and cake sales have all helped to raise<br />

£20,000 for hospice care for children and<br />

young people. Colleagues at Southern<br />

Co-op’s head office in Portsmouth set<br />

themselves a target to raise £10,000 in<br />

a year for Naomi House & Jacksplace<br />

– their chosen charity – as part of the<br />

retail society’s community engagement<br />

programme Love Your Neighbourhood.<br />

Lincolnshire raises £143,400 for prostate cancer<br />

Lincolnshire Co-operative’s fundraising<br />

campaign for Prostate Cancer UK has<br />

attracted £143,400. A total of 157,000<br />

members contributed to the amount by<br />

shopping in the society’s stores or using<br />

their dividend cards. The proceeds from<br />

the carrier bag levy were also added to<br />

the pot. One in eight men are diagnosed<br />

with prostate cancer in the UK.<br />

Cracking crime over a cup of tea from Scotmid<br />

Crimestoppers Scotland has partnered<br />

with Scotmid Co-op on a series of<br />

CommuniTea events, where people can<br />

speak up about crime anonymously.<br />

Scotmid will supply hampers of food and<br />

refreshments. Jim McFedries, head of<br />

security at the society, said: “Helping to<br />

ensure our stores are safe and welcoming<br />

fits perfectly with Crimestoppers’ ethos.”<br />

East of England apprentice scheme goes up for awards<br />

The East of England Co-operative’s<br />

apprenticeships scheme is being<br />

considered for the Training Journal<br />

Awards. It is shortlisted for Best Talent<br />

Development Programme and Best<br />

Apprenticeship Programme. The scheme<br />

was created to attract, develop and retain<br />

talented local people.<br />

SAOS body appoints new chair and vice chair<br />

The Scottish Agricultural Organisation<br />

Society has appointed a new chair and<br />

vice chair at its AGM. Mark Clark (left)<br />

takes over from George Lawrie as chair<br />

of the organisation, which supports<br />

co-operatives and collaboration in<br />

Scottish farming. The new vice chair is<br />

John Hutcheson.<br />

<strong>AUGUST</strong> <strong>2018</strong> | 11


CREDIT UNIONS<br />

Campaign to take the money worries out of the working week<br />

A new campaign, Work Not Worry,<br />

is encouraging employers to form<br />

partnerships with credit unions to help<br />

staff save and get affordable credit.<br />

The Association of British Credit Unions<br />

(Abcul), which is leading the campaign,<br />

says employers across the UK are already<br />

using credit unions to enable workers<br />

to access savings and affordable credit<br />

facilities with payments deducted from<br />

pay. They include Admiral Insurance,<br />

Royal Mail, British Airways and the NHS.<br />

According to Abcul research funded<br />

by Citi Foundation, 70% of employees<br />

who take advantage of credit union<br />

partnerships feel more financially capable<br />

and better supported. Another study by<br />

Money Advice Service found that 59%<br />

of employees with financial worries<br />

say money concerns prevent them from<br />

performing their best at work. And a<br />

report by the Fairbanking Foundation<br />

concluded that while only 26% of credit<br />

union borrowers saved regularly before<br />

joining their credit union, 71% intend to<br />

save regularly after repaying their loan.<br />

p Abcul wants employers and credit unions to work together to promote financial health<br />

Matt Bland, head of policy and<br />

communications at Abcul, said: “In our<br />

conversations with employers, it is clear<br />

that many are not aware of the financial<br />

difficulties facing their staff. Those that do<br />

have sadly seen it became a serious issue<br />

in the workplace before they had chance<br />

to respond. We regularly hear horror<br />

stories of people falling into a cycle of<br />

escalating payday loans.<br />

“Credit unions have a proven track<br />

record of turning borrowers into savers.<br />

The Save As You Borrow report shows<br />

that credit unions turn 71% of borrowers<br />

into savers and that 96% of employees<br />

that are encouraged to use payroll<br />

deduction through the credit union have<br />

found it helpful.<br />

“All employers have to do once a<br />

partnership is set up is spend a couple<br />

of minutes making the deductions each<br />

pay day – one file transfer, one payment.<br />

All employees have to do is agree to a<br />

deduction of their choice per month – and<br />

it comes directly from their salary, making<br />

life easy for everyone”.<br />

HOUSING<br />

Government to allocate<br />

£163m to Community<br />

Housing Fund<br />

The UK government has allocated £163m<br />

to the community-led housing sector to<br />

help provide affordable homes at local<br />

income levels.<br />

Since its launch in 2016, the<br />

Community Housing Fund has awarded<br />

p The fund will help build community housing<br />

£60m in grants to 148 local authorities to<br />

support community-led projects.<br />

For the latest round of funding, Homes<br />

England will manage applications from<br />

outside London across two phases, with<br />

a separate programme to be delivered by<br />

the Greater London Authority.<br />

Homes England chief executive, Nick<br />

Walkley, said: “We’re determined to<br />

increase the supply of homes across all<br />

tenures and increase capacity in the<br />

housing sector. This is a really important<br />

fund, which will offer lasting impact and<br />

we look forward to receiving bids from<br />

community groups across England.”<br />

Tom Chance, director of the National<br />

Community Land Trust Network, said:<br />

“We’re delighted the government has<br />

recognised the vital role community-led<br />

housing can play in delivering muchneeded<br />

affordable housing.<br />

“It’s the fastest growing new form of<br />

housing in the country.”<br />

Blase Lambert, chief officer of the<br />

Confederation of Co-operative Housing<br />

(CCH), said: “The Community Housing<br />

Fund represents a once-in-a-generation<br />

investment from government in our sector.<br />

It is an opportunity for the co-operative<br />

and community housing sector to develop<br />

new homes and help communities meet<br />

their housing needs in England.”<br />

The fund is available to community-led<br />

groups across England to support delivery<br />

of new affordable homes up to 31 March<br />

2020. These can be local authorities or<br />

Registered Providers of social housing,<br />

including housing co-operatives.<br />

Under phase one, community groups<br />

can apply for support with the costs<br />

involved in the pre-development stage of<br />

community-led housing projects.<br />

Local authorities can also bid for<br />

funding to support capacity-building<br />

activities for community-led groups, as<br />

well as capital funding for small-scale<br />

infrastructure projects to unlock sites that<br />

the community can develop for housing.<br />

The second phase will invite bids for<br />

capital funding to develop community-led<br />

affordable housing schemes.<br />

Bidding for phase one is now open at<br />

s.coop/29jfg.<br />

12 | <strong>AUGUST</strong> <strong>2018</strong>


MODERN SLAVERY<br />

Co-op movement steps up its efforts to stop the scourge of forced labour<br />

The Co-op Group has become the first business outside the<br />

building sector to adhere to the Gangmasters and Labour Abuse<br />

Authority’s (GLAA) protocol to help eliminate modern slavery<br />

from the construction industry.<br />

Signatories agree to work in partnership to protect vulnerable<br />

workers, share information to help stop or prevent the exploitation<br />

of workers, work together to manage information sensitively and<br />

confidentially, and raise awareness within the supply chain.<br />

Andrew Lofty, director of construction at the Co-op Group, said:<br />

“I would urge all companies to join us and sign this important<br />

protocol which looks to eliminate modern slavery and labour<br />

exploitation from supply chains.<br />

“Our estates group engages with businesses building and<br />

maintaining our stores and the facilities management team<br />

interface with a variety of companies while our insurance<br />

business works with home repair contractors.<br />

“Many of these involve sub-contracted labour and often<br />

multiple sub contracts – all with the potential to hide the worst<br />

excesses of labour exploitation.”<br />

The Group is already offering jobs to victims of modern slavery<br />

through Bright Future, an employment scheme developed in<br />

partnership with charity City Hearts.<br />

The programme has attracted 10 more businesses who signed<br />

up to the scheme earlier this month. These include retailer John<br />

Lewis and independent co-operative societies Midcounties and<br />

East of England.<br />

The scheme is now attracting a new business every week.<br />

It offers victims a four-week paid work placement leading to<br />

a non-competitive interview. If successful, the candidate is<br />

offered a permanent job at the host business. So far, 50<br />

survivors have been given a chance to rebuild their lives through<br />

the scheme, with the Group estimating that 300 will secure<br />

placements by 2020.<br />

Another campaign, supported by the Co-operative Academy of<br />

Leeds, is aimed students who could be victims of forced marriage,<br />

a recognised form of modern slavery.<br />

Working with UK human rights charity Karma Nirvana, the<br />

academy is advising teenagers who are being taken abroad<br />

against their will to hide a spoon in their clothing. This will<br />

trigger airport metal detectors, which will lead to security taking<br />

the individual away for a search, when they can alert authorities<br />

safely and in private.<br />

Anup Manota, operations manager at Karma Nirvana, said:<br />

“The summer holiday is the ideal time for parents who want to<br />

take their child abroad because the school won’t be looking for<br />

them. This is a simple measure that can prevent serious abuse.”<br />

Karma Nirvana says it receives 22 reports every week from<br />

young people concerned about a forced marriage. The charity<br />

launched a national helpline in 2008, which has answered<br />

60,000 enquiries.<br />

<strong>AUGUST</strong> <strong>2018</strong> | 13


pThorncombe Village Shop in Dorset is one of many community stores supported by Plunkett<br />

DEVELOPMENT<br />

Plunkett announces its<br />

five-year strategy<br />

for supporting<br />

community business<br />

Plunkett Foundation, which supports<br />

rural community businesses, has released<br />

a five-year strategy to “be more focused<br />

and target our resources and efforts more<br />

clearly and effectively”.<br />

It said there would be no major shift in<br />

its goals, and the <strong>2018</strong>-2002 plan would<br />

continue to focus on growing the rural<br />

community business sector; encourage<br />

its development more widely; and spread<br />

understanding a of its role supporting the<br />

wellbeing of rural communities.<br />

This includes a widening of the concept<br />

of ‘community businesses’ to reflect the<br />

broadening use of community ownership,<br />

so that it can support a greater range<br />

of community ownership solutions.<br />

And it has set out five key objectives:<br />

Growing the sector: Helping more<br />

rural communities to open community<br />

businesses and ensuring those already<br />

trading have the support they need<br />

Extending its relevance and reach:<br />

Ensuring the community business model<br />

and the support available are relevant and<br />

accessible in all parts of the UK.<br />

Increasing social impact: Helping<br />

community businesses to focus on the<br />

social impact they will have on all those<br />

living and working in their communities<br />

Creating an enabling environment:<br />

Advocating rural community businesses<br />

and championing their cause<br />

Rural co-ops eligible for ownership awards<br />

Plunkett is welcoming applications<br />

for this year’s Rural Community<br />

Ownership Awards, with co-ops and<br />

community benefit societies among<br />

those eligible.<br />

The categories are: community story<br />

of the year; investing in local people:<br />

the little things – for tackling loneliness<br />

and isolation; diversifying to make<br />

a difference; and people’s choice,<br />

for an individual who has made a<br />

difference in their community. Finally,<br />

the Horace Plunkett Better Business<br />

Improving Plunkett’s own<br />

sustainability: Ensuring the long-term<br />

survival of the service and that of the wider<br />

rural community business movement.<br />

The strategy will offer a practical<br />

support service for community businesses,<br />

which will be the “go-to place for rural<br />

communities looking to set up or run all<br />

manner of community businesses”.<br />

There will also be a range of activities led<br />

by Plunkett’s engagement team, who have<br />

responsibility for communications and<br />

awareness-raising activities, consultation<br />

and lobbying, and developing good<br />

working relationships with stakeholders.<br />

In the longer term, Plunkett wants to<br />

establish an information and innovation<br />

hub to gather and share intelligence<br />

and expertise on the rural community<br />

business sector – although this depends<br />

on the resources coming available<br />

Finally, it aims to make its operation<br />

more efficient “through attracting high<br />

Award will go to a community business<br />

with the longevity and a track record<br />

that demonstrates innovation.<br />

Nominations for the awards,<br />

which are supported by Esmée<br />

Fairbairn Foundation and Hastoe<br />

Housing Association, are open until<br />

14 September. Each category winner<br />

will receive £250 as well as the support<br />

and materials to host a celebration for<br />

their community.<br />

To apply, visit plunkett.co.uk/aboutthe-awards/<br />

quality people, and through effective<br />

governance, efficient operations and<br />

financial management”.<br />

The introduction to the strategy says:<br />

“Plunkett is proud of its roots ... For<br />

almost 100 years, it has supported rural<br />

communities to thrive through community<br />

business and to improve the quality of life.<br />

“Today, it represents the interests of<br />

over 500 rural community businesses that<br />

it has helped to establish and a further<br />

400 in the process of setting up, as well as<br />

those who are just starting on the path.”<br />

It adds: “For the last few years, we<br />

have focused on growing the rural<br />

community business sector, specifically<br />

through piloting new community<br />

business models and targeting those<br />

areas, geographic and sectoral, where<br />

the model was less developed. We have<br />

pioneered community ownership among<br />

a wider range of sectors, including pubs,<br />

woodlands and health.”<br />

14 | <strong>AUGUST</strong> <strong>2018</strong>


OBITUARY<br />

Movement loses leading co-operator,<br />

Lord Thomas of Macclesfield<br />

A pioneer of ethical finance, Terence James Thomas – Lord<br />

Thomas of Macclesfield – passed away on 1 July at the age of 80.<br />

A former managing director of the Co-operative Bank, he<br />

established a new approach to finance, placing ethical and<br />

environmental concerns at the heart of the business.<br />

He started working for the Bank in 1973, as the first marketing<br />

manager of any UK bank. After being appointed managing<br />

director in 1988, he commissioned a statue of Victorian social<br />

reformer Robert Owen, which was placed outside the Bank’s<br />

premises on Balloon Street, Manchester.<br />

Owen’s take on management influenced Lord Thomas’s<br />

own. He committed the Bank to a customer-led ethical and<br />

environmental policy in 1992, which the organisation continued<br />

to develop following his retirement. He also introduced free<br />

banking to UK consumers.<br />

He spent 25 years at the Bank before retiring and joining the<br />

House of Lords as a Labour peer in 1997, although his hopes for<br />

a new career in public service was shortened by illness.<br />

He also served as president of the International Co-operative<br />

Banking Association between 1988 and 1996. He was visiting<br />

professor of Stirling University and chief examiner of the<br />

Chartered Institute of Bankers. He chaired the East Manchester<br />

Partnership between 1990 and 1996.<br />

Paul Monaghan, chief executive of the Fair Tax Mark and<br />

former head of sustainability at the Co-op Group, said: “Terry<br />

brought me into the Co-op Bank in 1994 to add some science and<br />

steel to the Bank’s environmental programmes – he wanted to<br />

create nothing less than the world’s first ecological bank.<br />

“He was an inspiration to work with and I would suggest<br />

that he is arguably the most important co-operator of modern<br />

times. He turned the Co-operative Bank into a world-renowned<br />

champion of ethical business conduct.<br />

“Before TJT, the UK’s co-op movement was shrinking into<br />

irrelevance and obscurity, but he demonstrated what co-op<br />

values and principles looked like in a modern context – and<br />

forced the movement to radically up its game.”<br />

Mr Monaghan added: “I’ve never seen a business leader so<br />

loved by employees as Terry was: he left his last management<br />

conference to floods of tears akin to a retiring pop star.<br />

“He and the Body Shop’s Anita Roddick raised the bar<br />

on corporate responsibility more than anyone in that era.<br />

He took on issues well ahead of the curve – from climate change<br />

to landmines – and shook up everyone from the Bank of England<br />

to the Chemicals Industries Association.<br />

“We met regularly following his retirement and I’m sad to<br />

say that it pained him that he was never accorded the credit<br />

he deserved by much of the co-op movement – but then again,<br />

when he ran for the Co-op Group CEO position he did pledge a<br />

radical ethical renaissance and an end to the sale of tobacco<br />

products! The world really is the poorer for his passing.”<br />

Frank Nelson, a member of the Group’s National Members’<br />

Council who worked with Lord Thomas at the Bank, said: “He<br />

was responsible in large measure for the Co-operative Bank<br />

p Lord Thomas helped set new standards for ethical banking<br />

becoming the most popular bank in the country and, under<br />

his leadership, the Bank was embedded with our Co-operative<br />

Values and Principles. He was, in my 40-year Co-op career<br />

– including a spell as a marketing manager at the Bank – the<br />

best co-op leader I have ever met. I’ll remember him for that.”<br />

Malcolm Hurlston, who worked with Lord Thomas throughout<br />

his career and introduced him to employee share ownership in<br />

the US, said: “Lord Thomas was the leading personal banker<br />

of his generation and probably of the 20th century.<br />

“He came to prominence when he joined the Co-operative<br />

Bank. Then he became the first managing director of Unity<br />

Trust, co-owned by the Co-op and the trade unions, where he<br />

brought employee share ownership to Britain.<br />

“The Co-op Bank became the most popular bank in the<br />

country under his leadership, re-infusing it with co-operative<br />

principles and working closely with the Labour Party.”<br />

Passionate commitment<br />

He added: “As the first chair of the East Manchester<br />

Partnership he played a major role in the regeneration<br />

of east Manchester and was instrumental in bringing the 2002<br />

Commonwealth Games to the city. He also became the first<br />

chairman of the North West Regional Development Agency.<br />

“He was personal, committed and engaging: few could resist<br />

his conviction, charm, hywl and passionate commitment to<br />

good causes. TJT, as he was affectionately known, was greatly<br />

respected and admired by all his colleagues. He was the<br />

popular personal banker whose memory lives on in an era when<br />

corporate bankers have never been so scorned.”<br />

Ed Mayo, secretary general of Co-operatives UK, said: “The<br />

death of Lord Thomas has stripped us of the most imaginative<br />

and far-sighted co-operative entrepreneur of his day. He was the<br />

great reinventor of co-operative values.”<br />

The Co-op Group’s member nominated director Hazel Blears<br />

added: “Terry Thomas was a giant of our co-op movement and<br />

helped us to ensure our future. I learned so much from him.<br />

He always had time to listen and to guide and support. He was<br />

a modest man of great talent and achievements.”<br />

<strong>AUGUST</strong> <strong>2018</strong> | 15


OBITUARY<br />

Burt Cross, 1920–<strong>2018</strong><br />

Bill Shannon, David Seaman, Tony<br />

and Gillian Luscombe, former colleagues of<br />

Burt Cross, remember his lifelong service to<br />

the co-op movement.<br />

Burt Cross, a major figure in the<br />

modernisation and transformation of the<br />

Co-op which began in the 1960s, died on<br />

15 May <strong>2018</strong>, at the age of 97.<br />

Born in Manchester in 1920, he joined<br />

CWS in 1937, first in the postal department,<br />

then in the publicity department, but on<br />

the outbreak of the Second World War he<br />

was called up to the Territorial Army, and<br />

spent the next seven years in the services.<br />

On his return to the CWS, he began to<br />

study for an external economics degree<br />

at London University, via a scholarship<br />

to the Co-operative College, and thus<br />

became one of the very first graduates<br />

employed by the CWS. As an innovative<br />

organisation, the CWS was one of the first<br />

businesses in the country to have a market<br />

research department. Burt served there<br />

for a spell before a period as national<br />

sales manager, Bakery Division, but then<br />

returned to market research, becoming<br />

manager when his predecessor, Fred<br />

Lambert, left in 1966 to set up the CWS<br />

regional distribution centres.<br />

This was a pivotal moment for the CWS,<br />

and Burt found himself and his team in<br />

the thick of the transformation initiated<br />

by Philip Thomas, which included<br />

the introduction in 1967 of the Co-op<br />

cloverleaf logo designed by the US brand<br />

strategy company Lippincott & Margulies.<br />

He was closely involved in the roll-out of<br />

that logo and fascia to the stores of the 500<br />

or so independent societies that made up<br />

the movement, under Operation Facelift.<br />

At the same time the products of the<br />

CWS factories, then marketed under a wide<br />

range of ‘house-brands’, were relaunched<br />

under the Co-op brand – each of which<br />

was rigorously tested by the testing panels<br />

of Burt’s market research department, to<br />

ensure they were of equivalent quality<br />

to the branded product. Soon after,<br />

national television advertising began, and<br />

Burt became general manager – marketing<br />

services, taking on responsibility for<br />

advertising, public relations, design,<br />

p Burt Cross’s career in the movement began in 1937<br />

display and photographic departments,<br />

well as market research, to which was<br />

added the newly created dividend stamps<br />

department, set up in 1969 to manage<br />

the stamps scheme, and to encourage all<br />

societies, the majority of which had by<br />

then ceased to pay dividend, to join the<br />

scheme. This allowed the movement in<br />

1974 to unite behind a new advertising<br />

strap-line, ‘Your Caring, Sharing<br />

Co-op’ which for the first time in its<br />

history positioned the Co-op in line with<br />

its values as both a member-owned,<br />

profit-sharing organisation, but also as<br />

the ethical, responsible, retailer.<br />

Burt retired in 1985, but continued<br />

to maintain a strong interest in, indeed<br />

passion for, the Co-op. For many years<br />

he was a regular letter writer to the<br />

Co-op News, especially when he thought<br />

the Co-op brand, and the values legacy,<br />

were under threat. In 2010, he encouraged<br />

retail guru Mary Portas, who happened<br />

to be his grandson’s partner, to write<br />

about the Co-op in the Daily Telegraph (21<br />

January 2010), in which she criticised The<br />

Co-op Group for failing to make enough of<br />

its credentials. This led to her appearance<br />

with Burt – then aged 90 – at the<br />

Co-operative Congress in Birmingham<br />

in 2011, at which she urged delegates<br />

‘to trumpet its brand values in a more<br />

aggressive manner’ (Co-op News, 27 June<br />

2011). In his final years, Burt was pleased<br />

to see the return of something like ‘his’<br />

Co-op logo, and a return to the brand<br />

values he had espoused all his life.<br />

As well as his achievements for the<br />

Co-op, those who worked with Burt will<br />

remember a warm and witty man who,<br />

despite an occasional brusque manner,<br />

inspired and cared for them all.<br />

16 | <strong>AUGUST</strong> <strong>2018</strong>


GLOBAL UPDATES<br />

CYPRUS<br />

Investigation<br />

ordered into the<br />

downfall of the Cyprus<br />

Co-operative Bank<br />

p President Nicos Anastasiades defended his<br />

government’s handling of the crisis (Photo:<br />

European People’s Party)<br />

Cyprus’s attorney general has appointed<br />

a three-member panel to investigate the<br />

crisis at the country’s Co-operative Bank.<br />

The team is headed by Giorgos Arestis<br />

– a former Supreme Court and EU court<br />

judge, alongside economist Giorgos<br />

Charalambous, a former Bank of Cyprus<br />

executive, former board member of the<br />

development bank and former head of<br />

the securities and exchange commission,<br />

and Giorgos Georgiou, a former executive<br />

at Alpha Bank and former chair of the<br />

bank association.<br />

They will look at issues such as staff<br />

appointments, administration and<br />

corporate governance, including the<br />

structure, power and authority of the<br />

members of key management bodies.<br />

Also under scrutiny will be loan<br />

procedures and the management of bad<br />

debts. There has been much comment<br />

in Cyprus’ national press about the ease<br />

with which loans were granted, including<br />

allegations of easy loans to friends and<br />

relatives of staff.<br />

The bank, which has been sold to<br />

Hellenic Bank as part of the Cypriot<br />

government’s plans to eliminate bad debt<br />

in the national banking system, had to be<br />

bailed out in 2013.<br />

There has been widespread anger in<br />

Cyprus over the crisis at the bank, with<br />

calls from opposition parties for the<br />

resignation of finance minister Harris<br />

Georgiades. Critics blame him for the<br />

bank’s problems and accuse him of<br />

selling it on unfavourable conditions for<br />

the state, including the issue of a €2.5bn<br />

(£2.2bn) bond in favour of the purchaser<br />

and guarantees against unforeseen losses.<br />

But Cypriot president Nicos Anastasiades<br />

said: “The bank’s problems were neither<br />

created nor the result of political decisions<br />

by the finance minister.”<br />

Fears that the bank might be liquidated<br />

have sparked long ATM queues as people<br />

withdraw their money, and it has been<br />

reported that more than €70m has been<br />

taken out.<br />

Attempting to quell concerns, a<br />

spokesman for Cyprus’s central bank<br />

said the liquidation of the Co-operative<br />

Bank was only a “remote, theoretical<br />

probability” which had only been<br />

highlighted “to stress the most extreme<br />

negative consequences if the transfer of<br />

the Cyprus Cooperative Bank to Hellenic<br />

Bank is not completed”.<br />

Meanwhile a protest group, the<br />

Movement Against Foreclosures, held<br />

street rallies protesting against tougher<br />

measures on bad mortgage debt.<br />

The Citizen’s Alliance party said the<br />

government had “catastrophically brought<br />

things, yet again, to a tragic impasse”.<br />

USA<br />

Farmer-owned<br />

data co-op offers new<br />

insights on crop yields<br />

The only farmer-run data co-op in the<br />

USA has unveiled a new suite of ag tech<br />

offerings, which it says will help growers<br />

improve operations at all levels.<br />

The Grower Information Services<br />

Cooperative (GiSC) offers a secure platform<br />

for member farmers to capture, store and<br />

optimise their operational and yield data.<br />

Its repository of anonymous member<br />

data from across the country is continually<br />

refreshed, aggregated and analysed to<br />

produce relevant insights for growers.<br />

The co-op also works with IBM and<br />

Main Street Data to give members<br />

access to advanced weather and data<br />

analytic capabilities, and data tools for<br />

benchmarking and operational insights.<br />

GiSC chief executive Billy Tiller said:<br />

“Our goal is to provide for growers the<br />

obvious benefits of ag technology in a way<br />

that protects their interests. Our platform<br />

gives them security and control over their<br />

intellectual property – farm operation<br />

data – while also allowing them to realise<br />

the value of operational benchmarks<br />

and insights, and the latest in ag data<br />

analytics.”<br />

A new series of data tools from Main<br />

Street Data includes the Validator, which<br />

allows GiSC members to make sure their<br />

farming practice decisions meet their<br />

production goals. It allows them to see,<br />

at subfield-level, any gaps between yield<br />

potential and actual yields, and provides<br />

performance comparison to others<br />

farming under similar conditions.<br />

This tool is operational in corn and<br />

soybeans, with other crops available for<br />

benchmarking in the near future.<br />

“The Validator is the first in the<br />

set of grower-centric tools we plan to<br />

deliver,” said Ron LeMay, chief executive<br />

of Main Street Data. “Our goal in this<br />

collaboration is to serve as the farmers’<br />

advocate, an independent resource<br />

of data and data science solutions to<br />

address the issues they face and allow<br />

them to leverage opportunities to improve<br />

their productivity, profitability and<br />

sustainability.”<br />

<strong>AUGUST</strong> <strong>2018</strong> | 17


EUROPEAN UNION<br />

Legislators vote to put a label on<br />

the social and solidarity economy<br />

Social and solidarity economy products<br />

could be given their own European label.<br />

On 5 July the European Parliament<br />

approved a motion with recommendations<br />

to the Commission on a statute for<br />

social and solidarity-based enterprises.<br />

The Commission now has a year to<br />

implement the proposals or explain why it<br />

rejects them.<br />

One suggestion in the report is the<br />

establishment of a European label for<br />

products from social and solidarity<br />

enterprises, which include co-operatives.<br />

Sven Giegold, economic and financial<br />

spokesman for the Greens/EFA Group<br />

and co-president of the Social Economy<br />

group in the European Parliament, said:<br />

“A European label for products from social<br />

and solidarity enterprises would be an<br />

enormous boost for new companies with<br />

an orientation to the common good. To<br />

this end, we need a European definition<br />

of what we mean by social and solidarity<br />

enterprises. This would provide the basis<br />

for systematically promoting companies<br />

of general interest, for example in public<br />

procurement.”<br />

The parliament defines a social and<br />

solidarity economy enterprise as an<br />

organisation focused on the general<br />

interest or public utility, which conducts<br />

a socially useful and solidarity-based<br />

activity and reinvests a large part of the<br />

profit made, or uses this to achieve its<br />

social mission. Furthermore, the enterprise<br />

should be governed in accordance with<br />

democratic governance models involving<br />

its employees, customers and stakeholders<br />

affected by its activities.<br />

The report calls for a legal definition<br />

for social and solidarity enterprises.<br />

It highlights the particular challenges<br />

faced by social co-operatives and workintegration<br />

social enterprises (WISEs)<br />

p The Parliament approved the move on 5 July<br />

when carrying out their mission of helping<br />

those most commonly excluded from the<br />

labour market, and stresses the need for<br />

such organisations to be included under<br />

the new label.<br />

The label would be optional, upon<br />

request from social enterprises, and would<br />

be awarded to those which comply with<br />

a set criteria, regardless of the legal form<br />

they decide to adopt in accordance with<br />

national legislation.<br />

SPAIN<br />

Camper van makeovers get a green<br />

twist from Catalonian worker co-op<br />

p Travellers can seize the day in a Camper Diem van<br />

A co-op in Catalonia is designing prototype<br />

interiors for camper vans, tailoring its<br />

services to the specific needs of its clients.<br />

The Camper Diem co-op designs<br />

the interiors, implements the changes<br />

and provides support with repairing, if<br />

necessary. Its customers include families,<br />

couples or freelancers who need to work<br />

while camping.<br />

In October, the co-op will be presenting<br />

a solar-energy powered vehicle at the<br />

Caravanning Exhibition in Barcelona,<br />

and has obtained financial support for the<br />

project from the government.<br />

Founded in 2015, Camper Diem is a<br />

worker co-op set up by a group of workers<br />

using their redundancy payments. It<br />

currently has seven full members and<br />

three workers that have not acquired full<br />

membership yet.<br />

“We wanted everyone to be equal<br />

and we chose the co-op model for this,”<br />

says Albert Boada, one of the founding<br />

members of the co-operative.<br />

The co-op took its name from the Latin<br />

expression ‘carpe diem’ – meaning ‘seize<br />

the day’ – because the team aims for the<br />

freedom gained by living every day to<br />

its fullest. Every month members hold<br />

an assembly where they take decisions<br />

regarding the business.<br />

Mr Boada says the camper van sector<br />

is dominated by players without licences.<br />

18 | <strong>AUGUST</strong> <strong>2018</strong>


COSTA RICA<br />

Costa Rican coffee co-op drives carbon-neutral approach in the industry<br />

A coffee co-op is helping Costa Rica’s<br />

national drive to become climateneutral<br />

by 2021.<br />

Coffee is crucial to the economy – over<br />

90% of Costa Rica’s coffee is exported,<br />

making up 11% of the country’s export<br />

earnings – but the industry accounts for<br />

10% of the country’s carbon emissions.<br />

This makes it a key issue in the<br />

climate change strategy adopted by<br />

the government in 2007. One plank of<br />

this is the promotion of carbon-neutral<br />

certification schemes for businesses.<br />

At the forefront of these efforts is<br />

Coopedota, a coffee co-op in the mountain<br />

town of Santa María de Dota, about 45<br />

miles southwest of San José. Formed in<br />

1960 by a group of 96 farmers,it produces<br />

8,400 tons of coffee a year.<br />

It started reducing its greenhouse gas<br />

emissions in 1998, and was certified by<br />

the British Standards Institution as the<br />

world’s first carbon-neutral coffee in 2011.<br />

“Our certification covers all aspects of<br />

production, from farming to distribution<br />

and packaging,” said commercial director<br />

Monserrat Hernandez. “The certification<br />

is related to the co-op’s concern for the<br />

environment. Consumers appreciate this<br />

certification, which gives the product an<br />

added value.”<br />

The co-op has replaced wood-burning<br />

ovens with ones that burn coffee-plant<br />

waste, reducing emissions by 90%. It also<br />

uses coffee bean by-products to produce<br />

its own energy. Energy use has fallen from<br />

7.5 kW/h per 55.5 litres processed in 2004<br />

to 3.3 kW/h at present, while water usage<br />

has dropped 80% since 2001.<br />

And in 2005, Coopedota developed<br />

a recycling centre for the local community,<br />

in collaboration with the municipality<br />

of Dota.<br />

Climate change is an urgent issue for<br />

the industry because it affects coffee<br />

production across Costa Rica. “Tropical<br />

storms and the change in seasons within<br />

the region affect production, which<br />

requires one very dry season and one<br />

rainy season,” said Mr Hernandez.<br />

Costa Rica now has three zero-emission<br />

coffee companies and some carbonneutral<br />

banana, pineapple and cattle<br />

producers.<br />

“Now there is a move to produce zero<br />

emissions coffee in line with a national<br />

policy but we were the first to develop<br />

zero emissions certified coffee – and the<br />

only coffee co-operative to do so,” added<br />

Mr Hernandez.<br />

As a legal entity, Camper Diem can offer<br />

guarantees to clients and its workers,<br />

paying tax and providing social services.<br />

Environmental sustainability is another<br />

concern, said Mr Boada.<br />

“Our purpose is to innovate and have<br />

efficient and sustainable products. We<br />

work with electric companies providing<br />

solar energy, to offer these products. We<br />

aim to look at new hybrid vehicles and<br />

explore changes within the industry,”<br />

he added.<br />

During the production process, Camper<br />

Diem collaborates with other worker<br />

co-ops producing automotive<br />

components, as well as a cleaning and<br />

maintenance co-op, credit co-ops and<br />

energy provider Som Energia.<br />

Asked how the co-op was different from<br />

other providers, Mr Boada said: “We offer<br />

a personalised product and individualised<br />

options for each client.<br />

“We are a provider with social values<br />

that aims to foster environmental<br />

sustainability and co-operation. Thus,<br />

we have values that other companies do<br />

not have.”<br />

p The interior of a Camper Diem van<br />

<strong>AUGUST</strong> <strong>2018</strong> | 19


SINGAPORE<br />

Singapore welcomes <strong>2018</strong> World Credit Union Conference<br />

p WOCCU chair, Brian McCrory addressing delegates (Photos: WOCCU)<br />

The World Credit Union Conference<br />

brought 1,400 delegates from 58 countries<br />

to Singapore from 15-18 July.<br />

Hosted by the World Council of Credit<br />

Unions (WOCCU) in collaboration with<br />

the Singapore National Co-operative<br />

Federation (SNCF), the event saw 50<br />

industry experts discuss advocacy,<br />

blockchain technology, cybersecurity,<br />

diversity and inclusion, fintech,<br />

leadership and emerging trends.<br />

Following a long-standing tradition,<br />

delegates took part in the international<br />

flag parade, which was followed by a<br />

performance from dancers in costumes<br />

p A dancer performs at the opening ceremony<br />

featuring Singapore’s ethnic groups –<br />

Chinese, Malay, Indian and Eurasian – in<br />

traditional and modern dance.<br />

WOCCU chair Brian McCrory told<br />

the opening ceremony: “We must<br />

be innovators, social entrepreneurs,<br />

and skilled business leaders with the<br />

ability to run efficient businesses while<br />

deeply rooted in the philosophy of the<br />

co-operative spirit. We exist to provide our<br />

members with a not-for-profit service that<br />

empowers and enables them and through<br />

this, we generate sufficient surplus to<br />

reward our members, fund our operations<br />

and create additional social dividends.”<br />

Brian Branch, WOCCU president<br />

and chief executive, talked about food<br />

security, employment, climate change,<br />

the future of the internet and financial<br />

inclusion. He said these global challenges<br />

were becoming community challenges<br />

and, as community-based institutions,<br />

credit unions had to respond.<br />

“Today’s challenge is about<br />

interconnectivity and linkage and<br />

responding to these global challenges,” he<br />

said. “We were the disruptors more than<br />

100 years ago. Now we have to learn from<br />

today’s disruptors to be able to respond to<br />

today’s challenges.”<br />

The guest of honour at the opening<br />

ceremony, Singapore’s senior minister of<br />

state for defence, Heng Chee How, told<br />

credit unions to embrace technological<br />

innovation and digital transformation to<br />

“effectively compete with other financial<br />

institutions and fintech firms to meet the<br />

demands of a new generation”.<br />

The importance of new technology was<br />

also stressed by fintech expert and writer<br />

Chris Skinner in his keynote speech.<br />

“For credit unions, helping people<br />

with technology equates to building the<br />

business around customer engagement,<br />

but digitally delivered,” he said. “Today,<br />

we are about product, platform and<br />

experience and we have to build digital<br />

20 | <strong>AUGUST</strong> <strong>2018</strong>


Migros pilots digital-only promotional campaign<br />

Swiss retailer Migros is running an<br />

entirely digital promotional campaign for<br />

customers who use its app. The federation<br />

of co-op societies – the country’s largest<br />

retailer – began a digital journey in 2016,<br />

relaunching its website and optimising<br />

user experience on all devices. Since<br />

launching its first app in 2014, the retailer<br />

has continued to add new functions.<br />

p Keynote speaker Shivvy Jervis<br />

institutions with digital change. Teenagers<br />

are reinventing money by writing<br />

code. Knowing how to leverage that is<br />

the secret sauce.”<br />

He said the digital age brings<br />

challenges for credit unions – including<br />

the responsibility for members’ data.<br />

“The real battle of the future is in the<br />

back office where all the data sits and<br />

credit unions should be questioning how<br />

fit their back office is,” he added.<br />

Meanwhile, digital tech is becoming<br />

more human, innovation strategist Shivvy<br />

Jervis said in her keynote speech.<br />

“We should think about technology as<br />

a catalyst, a connector and a culture –<br />

something that just doesn’t simply spark<br />

change but remains sustainable and<br />

makes a lasting impact,” she said.<br />

Ms Jervis suggested measures that credit<br />

unions could take, such as increasing<br />

digital IQ, formalising a culture of<br />

innovation and seeing technology as<br />

diffusion across all business lines, rather<br />

than as an IT challenge. She expects a<br />

move from first to second generation<br />

biometrics, with new forms of security<br />

that will use people’s biology to help keep<br />

them and their organisations safe online.<br />

“Talent is key. You need to bring in<br />

the visionaries, radical thinkers and<br />

mavericks to take your digital strategy<br />

forward,” she said.<br />

In terms of creating more value for<br />

customers, delegates heard from Ron<br />

Kaufman, author, leading educator and<br />

motivator. “Organisations need to take<br />

fundamental service principles and put<br />

them to work. The focus isn’t on what<br />

we do, but how it is appreciated by the<br />

person we serve. It’s about curating the<br />

experience, no matter the industry or type<br />

of organisation,” he said.<br />

Eroski launches project to recycle coffee capsules<br />

Coffee capsules are hard to recycle<br />

because they are made from a mix of<br />

aluminium and plastic and include<br />

additional organic waste from coffee. But<br />

Eroski’s scheme will recyle 100% of the<br />

material. Coffee companies producing<br />

capsules have so far set up around 800<br />

recycling points across Spain, but Eroski<br />

is the first major supermarket in Spain to<br />

adopt the measure.<br />

Paraguayan Senate approves co-op exemption from VAT<br />

Co-operatives in Paraguay will no<br />

longer have to pay VAT when trading<br />

with their members. The country’s<br />

Senate approved an amendment to<br />

the Co-operative Law, which proposes<br />

eliminating VAT on activities performed<br />

by co-op members, such as taking loans<br />

from the co-op, or activities between<br />

various co-operatives.<br />

Argentinian recycling co-op wages war on plastic waste<br />

A waste recycling co-op in Corrientes, a<br />

city on Argentina’s northern border, is<br />

playing a key role in efforts to eliminate<br />

plastic pollution from the streets. The<br />

waste is put into a press which compacts<br />

400kg of plastic every 40 minutes, and<br />

the bales are collected– with the profit<br />

generating income for the co-op.<br />

High security prison inmates form worker co-op<br />

Inmates at a maximum-security prison in<br />

Guayama, Puerto Rico, are now members<br />

of a worker co-op. Announcing the launch<br />

on 17 July, Puerto Rico’s governor Ricardo<br />

Rosselló Nevares said the business would<br />

enable inmates to work. They will offer<br />

a range of services, including T-shirt<br />

printing, sewing and cabinet making.<br />

<strong>AUGUST</strong> <strong>2018</strong> | 21


MEET...<br />

... Wendy Carter,<br />

Head of communications and<br />

marketing, Co-operatives UK<br />

Wendy Carter has just moved to Co-operatives UK, the apex body for the UK<br />

co-op sector, to lead its communications and marketing activities. She<br />

previously worked as head of development at the recently renovated Piece Hall<br />

venue and leisure centre in Halifax, following a series of marketing roles in<br />

the charity sector. Here, she talks about digital content, the need to tell co-op<br />

stories and the potential for growth in the movement.<br />

CAN YOU DESCRIBE A TYPICAL DAY?<br />

As I am new to the role, I am writing a marketing<br />

strategy for Co-operatives UK and looking at our<br />

communications with a fresh pair of eyes, which is<br />

always useful when you join an organisation which<br />

has been running for nearly 150 years.<br />

We’ve just held Co-operatives Fortnight, our<br />

flagship marketing campaign, so recently we’ve<br />

been pulling together data for the Co-operative<br />

Economy Report, identifying new trends which<br />

might be of interest to the media – this year we<br />

led with the story that new co-ops are nearly<br />

twice as likely to survive their first five years<br />

as other businesses. We worked with Blake<br />

House Co-operative to create an inspirational<br />

film (see feature p44-45), which has had a reach<br />

of nearly 100,000 on social media to date.<br />

Compelling digital content plays a key role<br />

in any communications plan so we are always<br />

looking for great case studies of innovative<br />

co-ops, striking photography, fascinating facts<br />

and inspiring film footage. Luckily our member<br />

co-ops are a great source of content – and with such<br />

a wide range of sectors and businesses there is<br />

always something to talk about.<br />

WHAT ABOUT YOUR NEW ROLE EXCITES YOU MOST?<br />

As a marketer I am excited about the opportunity<br />

for growth. The UK’s co-operative sector comprises<br />

more than 7,000 independent businesses with a<br />

combined turnover of £36bn, but this is still only<br />

a fraction of the overall UK economy, and a far<br />

smaller percentage than other countries such as<br />

Italy, France and Canada.<br />

This presents an exciting opportunity to really<br />

grow the sector, with Co-operatives UK at the heart,<br />

as the organisation that unites the rich and varied<br />

range of co-op businesses together to speak with<br />

one voice.<br />

HAVE YOU BEEN INVOLVED IN CO-OPS BEFORE?<br />

I have spent the last 17 years working in the charity<br />

and non-profit sector, working to promote a range<br />

of causes from heart research to wildlife<br />

conservation, teaching children to cook and<br />

launching a world-class heritage and cultural<br />

destination, but I am new to the co-op sector. Or<br />

so I thought! At the start of my career I worked at<br />

Yorkshire County Cricket Club, which I have just<br />

learned is a co-op. Little did I know that 20 years<br />

after taking minutes at some very vocal AGMs, I<br />

would come full circle back into the co-op world.<br />

WHAT IS CO-OPERATIVES UK’S<br />

CO-OPERATIVE DIFFERENCE?<br />

We are in a unique position to act as a unifying<br />

force for the UK’s co-operative movement,<br />

as a whole and for individual sectors. When we<br />

EVERY CO-OP SHOULD HAVE AN ‘ELEVATOR PITCH’,<br />

USING EVERYDAY LANGUAGE TO EXPLAIN THE<br />

PURPOSE AND VALUES OF THEIR BUSINESS<br />

22 | <strong>AUGUST</strong> <strong>2018</strong>


ISSN 0009-9821<br />

9 770009 982010<br />

01<br />

work together we are at our strongest – proven<br />

by recent lobbying efforts alongside our farmer<br />

members which resulted in Defra announcing<br />

a £10m collaboration fund. As experts in<br />

co-operative advice we help members and nonmembers<br />

thrive by supporting with governance,<br />

HR, membership and financial advice.<br />

WHAT IS THE BIGGEST CHALLENGE FACING<br />

UK CO-OPERATIVES?<br />

From a marketing perspective, the biggest<br />

challenge is lack of awareness. We need to<br />

promote co-ops as a viable and ethical business<br />

model in schools, at universities and business<br />

schools. In one of my previous roles we taught<br />

children to cook as a way of encouraging<br />

lifelong healthy eating habits, and in the same<br />

vein we should be teaching young people<br />

and new entrepreneurs to develop businesses<br />

that give back to workers, communities<br />

and customers.<br />

HOW COULD CO-OPS TELL THEIR STORIES<br />

MORE EFFECTIVELY?<br />

There is a lot of jargon and I think we just need<br />

to keep things simple. Every co-op should have<br />

an ‘elevator pitch’, using everyday language<br />

to explain the purpose and values of their<br />

business. People are bombarded by information<br />

and if you really want to stand out, a clear brand<br />

and a few key facts (that really mean something!)<br />

can help to tell your story.<br />

WHERE DO YOU SEE THE UK CO-OP MOVEMENT IN<br />

FIVE YEARS’ TIME?<br />

We should be well on the way to achieving the<br />

aims of the National Co-op Development Strategy,<br />

with the Co-op Economy Report 2023 showing<br />

a larger market share for co-ops. I would love to<br />

see more cross-sector collaboration with co-ops<br />

supporting and procuring goods and services from<br />

other co-ops.<br />

WHICH ACHIEVEMENT ARE YOU PROUDEST OF?<br />

I have been lucky enough in my working life to do<br />

lots of interesting things, including setting up the<br />

UK’s largest network of cooking clubs and being<br />

part of the successful re-opening of Britain’s last<br />

surviving cloth hall. I am excited about the part I<br />

can play in the co-operative movement.<br />

More on co-op growth and marketing, pages 33-47<br />

news Issue #7294 APRIL <strong>2018</strong><br />

Connecting, championing, challenging<br />

APRIL <strong>2018</strong><br />

EDUCATION<br />

Co-op learning:<br />

principle five<br />

in action<br />

Plus ... 150 years<br />

of East of England ...<br />

and updates from the<br />

Co-op Retail and Abcul<br />

conferences<br />

£4.20<br />

www.thenews.coop<br />

<strong>AUGUST</strong> <strong>2018</strong> | 23


YOUR VIEWS<br />

Have your say<br />

Add your comments to our stories<br />

online at www.thenews.coop, get<br />

in touch via social media, or send<br />

us a letter. If sending a letter, please<br />

include your address and contact<br />

number. Letters may be edited<br />

and no longer than 350 words.<br />

Co-operative News, Holyoake<br />

House, Hanover Street,<br />

Manchester M60 0AS<br />

letters@thenews.coop<br />

@coopnews<br />

Co-operative News<br />

NATIONALISATION OR MUTUALISATION?<br />

DEBATE OVER RAIL AND WATER<br />

IN LABOUR AND CO-OPERATIVE PARTIES<br />

I am not convinced that “debate” was<br />

the best word to use in the article on rail<br />

and water in Labour and Co-operative<br />

Parties (July <strong>2018</strong>). The Co-operative Party<br />

is entitled to have its own policies for<br />

the future of these industries as is Luke<br />

Pollard, but it is Labour’s policies that will<br />

be the determining factor, and these are<br />

detailed in the article.<br />

However, what was missing from<br />

Labour’s manifesto was how best the<br />

railway industry can engage the public<br />

and the workforce in its strategy, and<br />

how it can generate a climate in which we<br />

genuinely feel that we own our railways.<br />

In the speeches that Jeremy Corbyn<br />

has made to a number of trade union<br />

conferences it is clear that he has this very<br />

much in mind. Top-down management is<br />

a thing of the past and no one wants BR<br />

mark II. The mistakes of the 1945 Labour<br />

government, where opponents of public<br />

ownership found their seats on boards<br />

of management but the workforce was<br />

ignored, will not be repeated.<br />

I do not want to see a number<br />

of co-operatives owning the railway<br />

industry as competition and fragmentation<br />

of the industry has got us to where we are<br />

today. What we need is a publicly owned,<br />

co-ordinated and integrated railway<br />

industry with as much engagement of<br />

the workforce and the public as possible.<br />

Co-operation has much to offer in<br />

engaging stakeholders.<br />

Malcolm Wallace<br />

Via email<br />

IS RETAILER JOHN LEWIS REALLY<br />

EMPLOYEE-OWNED?<br />

To be accurate John Lewis is NOT employee<br />

owned. JL is owned by the John Lewis<br />

Partnership Trust which acts for the benefit<br />

of the employees, the partners. This is<br />

more akin to 19th century paternalism than<br />

genuine employee ownership or worker<br />

co-operativism.<br />

Bob Cannell<br />

Via Facebook<br />

VOTING – A RIGHT AND A<br />

RESPONSIBILITY<br />

For many years we asked for the right to<br />

vote. Which begs the question of, from<br />

all the voting papers sent out by the<br />

Co-op Group, how many are returned<br />

completed? This is for voting for group<br />

member elections, but there are other<br />

elections as well.<br />

This also happens for council and<br />

voting for a MP and other important<br />

elections – people don’t vote and it’s a<br />

big thing. Then the voters moan about<br />

what the person who gets elected does or<br />

says. People can’t moan if they don’t vote –<br />

or can they?<br />

David Treacher<br />

Hull<br />

24 | <strong>AUGUST</strong> <strong>2018</strong>


Acts of the<br />

Imagination:<br />

Greenbelt <strong>2018</strong><br />

Following a successful premier at last year’s<br />

Greenbelt Festival, we will be making a comeback<br />

this August Bank holiday, with Midcounties,<br />

Co-operatives UK and New Internationalist helping<br />

us to fund our own venue again, the Exchange.<br />

If you’ve never been, Greenbelt is an arts, faith<br />

and justice festival that attracts about 10,000<br />

people of all ages, including large numbers<br />

of families, young people, community activists and<br />

a wide range of people across the public sector. But<br />

until last year – when the theme was The Common<br />

Good – the co-operative movement did not have<br />

a presence at the festival at all.<br />

However it’s a great place for co-operators to<br />

go, because many festival-goers are thoroughly<br />

dissatisfied with the status quo – and are looking<br />

for something different. Most of them know little<br />

about what co-operation has to offer, which<br />

means that they are a very interested, receptive,<br />

questioning and enthusiastic audience.<br />

Last year, together with Co-operative Energy<br />

and the Phone Co-op, we introduced people<br />

to student housing co-ops, worker co-ops and<br />

energy co-ops; we held drop-ins and workshops<br />

for people interested in finding out more; we had<br />

panel discussions and we featured some speakers<br />

(Pete Westall, Vivian Woodell, Ed Mayo) both in<br />

the Exchange and on the main festival programme.<br />

This year in the Exchange<br />

• David Bird, CEO of Co-operative Energy, will star<br />

on our opening night with Rob Norman from New<br />

Internationalist<br />

• Ed Mayo will interview Kate Raworth (author<br />

of Doughnut Economics)<br />

• we have two sessions with Eve Poole (author<br />

of Capitalism’s Toxic Assumptions and<br />

Leadersmithing – Revealing the Trade Secrets<br />

of Leadership)<br />

• following this year’s festival theme Acts of the<br />

Imagination, we have three events: re-imagining<br />

housing, re-imagining care and re-imagining<br />

work, featuring pioneering co-operative<br />

organisations breaking new ground (you’ll have<br />

to wait and see)<br />

• we have a series of panel discussions on<br />

re-imagining money, which will include Islamic<br />

finance, the impact we can have with our money,<br />

and the future of money<br />

• there will be a series of panel discussions run<br />

by HeartEdge, a Church of England project<br />

promoting commerce, culture, compassion and<br />

congregation, and<br />

• a daily dose of co-operative education from<br />

Co-operatives UK (What is a co-op?)<br />

As an added incentive to entice festival-goers<br />

into the Exchange in its new prime location in the<br />

centre of the site, Midcounties is providing wi-fi,<br />

the only space with internet access on the whole<br />

site. We expect some visitors.<br />

And of course there’s loads of other stuff going<br />

on at Greenbelt, including masses of music (Pussy<br />

Riot are headlining), comedy, poetry, dance,<br />

drama … There is a wide range of very enticing<br />

street food available, a decent wine bar, and<br />

excellent beer.<br />

Last year, apparently Ed burst into song<br />

(I missed it) when he was supposed to be speaking.<br />

He wanted to be able to boast that he had sung<br />

at Greenbelt. I suggest that this year, we crowd<br />

fund a campaign to STOP him singing again, with<br />

the proceeds to go to …<br />

It’s a great event, in glorious surroundings,<br />

which will leave you uplifted, challenged,<br />

exhilarated and exhausted. It would be great to<br />

see you there.<br />

GREENBELT<br />

DAVID ALCOCK<br />

PARTNER, ANTHONY<br />

COLLINS SOLICITORS<br />

<strong>AUGUST</strong> <strong>2018</strong> | 25


Community Energy Conference<br />

<strong>2018</strong>: New tech needs new rules<br />

ENERGY<br />

MILES HADFIELD<br />

The transition to a low-carbon economy, new technologies and the challenges of fuel poverty and rising<br />

demand are bringing opportunities for the community energy sector, which met in Manchester on 23<br />

June for its annual conference. But delegates at the event – organised by Community Energy England<br />

and Co-op Energy – stressed that a the sector needs a less hostile legislative and regulatory regime.<br />

q Emma Bridge<br />

from Community<br />

Energy England<br />

ONSHORE WIND<br />

Max Wakefield, lead campaigner at 10:10 Climate<br />

Action, said planning blocks in England and a<br />

lack of public financial support amounted to a “de<br />

facto ban” on onshore wind.<br />

“It’s clearly not acceptable for onshore wind to<br />

be hung out to dry in that way,” he told a break-out<br />

session at the conference. “It is the cheapest and<br />

the cleanest energy alternative – a key technology<br />

if we’re going to meet our climate targets at cost.”<br />

He said the national position was shifting on<br />

this, with a softening in the last Conservative<br />

manifesto, but “a small group of Tory MPs don’t<br />

want it in England”.<br />

With the government weakened by the loss of<br />

its overall majority, it is in no position to force the<br />

issue, he added, but the balance of power could<br />

shift, as “a new intake of Tory MPs are pushing the<br />

way forward” in favour of onshore wind.<br />

Paul Monaghan from Co-op Energy added: “All<br />

you need is 15-20 Tories on board ... This is a door<br />

and this is our time to push it.”<br />

TECHNOLOGY<br />

At the main morning session, Emma Bridge, chief<br />

executive of Community Energy England, said<br />

it was important for the sector to explore new<br />

avenues for growth – such as bringing existing<br />

assets into community ownership and improving<br />

the skills base through training. And there is scope<br />

to develop “more holistic approaches” thanks to<br />

new technology, such as battery storage.<br />

Hector Cruz, chief financial officer at Co-op<br />

Energy, also stressed the potential of battery<br />

storage, which has seen huge technical advances,<br />

allowing a 24-hour energy supply from intermittent<br />

sources like wind.<br />

But he said there needed to be a connections<br />

process. “Looking at the future – down the road<br />

20, 30 years – it won’t be the National Grid running<br />

everything, it will be local grids,” he said. “We<br />

need to get the investment in place but it’s easier<br />

said than done.”<br />

Again, regulation is an issue. Harrison Brook<br />

from Moixa, a battery company exhibiting at the<br />

conference, said advances in storage tech could<br />

help community schemes offer reduced bills and<br />

engagement in energy use. But at the moment, he<br />

told Co-op News, the VAT system is not conducive<br />

to the rollout of batteries. “Once these subsidies<br />

come we have every confidence this will be<br />

a mass-market solution,” he added.<br />

INCLUSION<br />

Carla Blockley, from Electricity North West – one<br />

of the UK’s 14 distribution network operators<br />

regulated by Ofgem – told the main morning<br />

session that the drivers for change were the<br />

switch to wind, solar, storage and nuclear, and the<br />

electrification of rail, metro and road transport.<br />

One feature of the changing energy landscape is<br />

the untapped potential of community projects. In<br />

a recent survey, 2% of respondents were involved<br />

in community energy schemes but 70% were<br />

interested in them.<br />

“Customers can help come up with and deliver<br />

solutions,” she said. “The system is much more<br />

complex now. We need new sets of skills and<br />

capabilities ... we need to work out how we will<br />

get those skills – but it also means there is more<br />

participation in the network. Not everybody will<br />

have new technology like heat pumps and we<br />

need to make sure no one is left behind.”<br />

26 | <strong>AUGUST</strong> <strong>2018</strong>


HEAT SHARING<br />

A separate session looked at the potential of heatsharing<br />

co-ops to offer energy alternatives for<br />

villages, housing associations, sheltered housing<br />

developments and similar communities.<br />

Mike Smyth, chair of Energy4All, said “Heat is<br />

about a third of UK emissions and there’s very<br />

little progress in reducing it.”<br />

The UK government wants emissions from the<br />

heating of buildings reduced to zero by 2050, he<br />

added, but “we don’t know how to do it.”<br />

There is government support in place for heat<br />

initiatives in the form of the Renewable Heat<br />

Incentive (RHI), a feed-in tariff for heat, he said,<br />

but other countries are faring rather better. In<br />

Denmark, “64% of households are served by<br />

district heating and the supply is dominated by heat<br />

co-ops ... The co-op movement has driven the<br />

commercial sector out of business.”<br />

Heat co-ops can be powered by biomass<br />

burning. Mr Smyth gave the example of Springbok<br />

Sustainable Wood Heat Co-op, which built a<br />

sustainable woodchip-burning system at a<br />

retirement hamlet in Surrey. This provides reliable<br />

shared heat for the community while saving<br />

between 275 and 300 tonnes of carbon a year.<br />

Another energy source is the ground heat pump.<br />

Jon Hallé, from Share Energy Co-op, said these<br />

use the soil “as a big solar panel” by running<br />

loops under the ground or digging boreholes to<br />

extract stored heat from the sun.<br />

“You might have a loop which is shared by<br />

multiple buildings,” said Mr Hallé. “Getting that<br />

large cost of setting up such a system and to some<br />

degree socialising it is one of those things that<br />

co-ops are good at.”<br />

There are still hurdles to overcome, he added,<br />

with investment returns “not quite there yet” and<br />

legal agreements difficult if the system involved<br />

running equipment through other people’s<br />

land. It is also hard to retrofit the system to<br />

old buildings. And government policy is again a<br />

problem. The RHI scheme only lasts two years,<br />

said Mr Hallé, compared to Denmark where “they<br />

know their horizon is a five-to-ten year one, with<br />

cross-party agreement”.<br />

REGULATION<br />

Patrick Allcorn, head of local energy at the<br />

Department of Business, Energy and Industrial<br />

Strategy, warned delegates in the main session<br />

that the sector needed to provide evidence to back<br />

up its demand for state support, for instance by<br />

proving the number of jobs it can create.<br />

They also need to work with local government<br />

to ensure better planning. “Local authorities who<br />

collect waste have a fuel source that they aren’t<br />

optimising,” he said. “They also plan demand but<br />

they do it in isolation from the networks they are<br />

planning for.”<br />

He gave the example of 200,000 new homes<br />

planned in Manchester. “How much have they<br />

consulted Electricity North West about where<br />

that power is coming from? The power is an<br />

afterthought.<br />

“And if we build those houses smart with<br />

efficient local energy, what about houses that<br />

haven’t been retrofitted? A new house on one side<br />

pays £500 a year for energy and across the road a<br />

house that’s 150 years old pays £1,500 for energy.<br />

How acceptable is that as a community?”<br />

He added that the regulator would take a tough<br />

line on energy communities which went off grid.<br />

“It would transfer costs of grid to those least able<br />

to afford it,” he warned. “If that happens you are<br />

dead in the water.”<br />

But he said there were huge possibilities for<br />

the sector, dealing with issues such as loneliness,<br />

by powering transport – and elderly care, by<br />

offering affordable heat so people could stay in<br />

their homes.<br />

“Energy is unlocking a social care problem,”<br />

he said. “It’s an opportunity for local community<br />

energy.” He added: “The UK in the last 10 years<br />

has grown more than any G7 country and has<br />

decarbonised more than any other G7 country.<br />

“This is the biggest economic opportunity<br />

for the country.”<br />

p Mike Smyth from<br />

Energy4All discussed<br />

woodchip-fuelled heat<br />

co-ops. Below: Ground<br />

source heat loops<br />

under installation<br />

<strong>AUGUST</strong> <strong>2018</strong> | 27


Meet the <strong>2018</strong> Co-operatives of the Year<br />

The winners of the <strong>2018</strong> Co-operative of the Year<br />

awards were announced in London on 23 June, as<br />

part of the sector’s annual Co-operative Congress.<br />

Organised by apex body Co-operatives UK<br />

and sponsored by the Co-operative Councils<br />

Innovation Network (CCIN), this year’s awards<br />

included categories for co-ops of different sizes<br />

and, for the first time, a category recognising the<br />

work of Co-operative Councils. Over 33,000 votes<br />

were cast in total.<br />

The Breakthrough Co-operative of the Year<br />

Award (for co-ops with a turnover of up to £1m) was<br />

won by The Service, a London-based production<br />

company that brings together like-minded<br />

production creatives with a love for social impact,<br />

the arts and creative collaboration. Their film,<br />

Amina’s Story, was nominated for a One World<br />

Media film award and the organisation has also<br />

been nominated for a Charity Film Award <strong>2018</strong> for<br />

its Miscarriage Association film.<br />

Louise Stevens, creative director of The Service<br />

said this was the first award they have won that<br />

“recognises our work as a co-op, as well as our<br />

creative approach to doing businesses”<br />

“We are totally thrilled by this and incredibly<br />

proud to be a part of the co-operative movement,”<br />

she added.<br />

Inspiring Co-operative of the Year (for co-ops<br />

with a turnover of between £1m and £30m) was<br />

awarded to the Foster Care Co-operative (FCC) –<br />

the only not-for-profit co-operative operating in<br />

foster care in the UK.<br />

FCC ploughs surplus income into more training<br />

and support for carers, and is participating in<br />

university-led research looking at what barriers<br />

potentially stop disabled people from becoming<br />

foster carers.<br />

FCC also publishes monthly e-safety articles<br />

to help keep young people safe online, and has<br />

developed an interactive section on their website<br />

where the young people they support can safely<br />

log on and take part in competitions, upload<br />

artwork, become a ‘guest reporter’ and contact a<br />

designated staff member (‘KidzRep’) should they<br />

need someone to talk to.<br />

FCC executive director, Ian Brazier, said.<br />

“We are delighted that the hard work, care and<br />

commitment from the foster carers, children and<br />

staff have been recognised through the award<br />

for most Inspiring Co-op. It is a testament to<br />

their dedication in ensuring better outcomes for<br />

children in need of care whilst keeping values<br />

based on Integrity, Ethics, Quality and Cooperation.”<br />

Midcounties Co-operative, the largest<br />

independent co-operative in the UK, received the<br />

Leading Co-operative of the Year award (for co-ops<br />

with a turnover above £30m).<br />

The society has a turnover of £1.5bn and<br />

employs over 8,400 staff working in Food Retail,<br />

Post Office, Travel, Energy, Healthcare, Flexible<br />

Benefits, Funerals and Childcare.<br />

To help build strong local communities<br />

Midcounties has created 20 Regional Communities<br />

which in 2017/18 provided 36,000 colleague<br />

volunteering hours and distributed £260,000<br />

to over 500 good causes. During the past year,<br />

it has also engaged with over 21,000 members,<br />

28 | <strong>AUGUST</strong> <strong>2018</strong>


aised over £150,000 for local charity partners<br />

and worked with over 9,000 young people at 50<br />

partner schools. In addition it has contributed<br />

over 73,000 products to Foodbanks, providing<br />

meals to over a 1,000 families in need.<br />

“As a member owned Society this award is<br />

particularly important to us because it was voted<br />

for by our members,” said Ben Reid, Midcounties<br />

Group CEO. “We have been previously voted Cooperative<br />

of the Year twice in 2012 and 2015, so<br />

I want to say a particularly big thank to everyone<br />

who helped us achieve the hat-trick in <strong>2018</strong>”.<br />

The new award for <strong>2018</strong>, Co-operative Council of<br />

the Year, was picked up by Cardiff Council, which<br />

has used co-operative approaches to inform and<br />

shape responses to challenges in Wales.<br />

The council works on the premise that “success<br />

requires a broad partnership”, allowing and<br />

encouraging everyone to contribute. This ethos<br />

has been applied to a range of delivery models<br />

to address city challenges, including education,<br />

local environmental and recycling initiatives,<br />

music and its own employee engagement. The<br />

Council won the Best Employee Engagement<br />

Initiative for ‘Employee Voice’ at the Wales People<br />

Management Awards and was named Living Wage<br />

for Wales Champion 2017-18.<br />

“I am delighted the Council has been recognised<br />

for the great co-operative work going on across the<br />

authority and in the city,” said Cllr Peter Bradbury,<br />

cabinet member for culture and leisure at Cardiff<br />

Council. We know that we don’t have a monopoly<br />

on good ideas so by working with partners –<br />

whether it’s residents or local businesses, and<br />

encouraging everyone to contribute, we can focus<br />

our joint energies and creativities on a particular<br />

issue.”<br />

Presenting the awards were Nick Matthews,<br />

chair of Co-operatives UK, and Cllr Sharon Taylor,<br />

chair of CCIN and leader of Stevenage Council.<br />

“These Awards highlight what can be achieved<br />

when people work together to build a better<br />

world and it is a privilege for CCIN to continue<br />

our association with Co-operatives UK in such an<br />

exciting way,” said Ms Taylor.<br />

She told delegates: “There is no major challenge<br />

to which there isn’t a co-operative solution. There<br />

is always a co-operative solution to whatever<br />

issues our councils are facing.”<br />

She described some of the work of CCIN member<br />

councils, such as community wealth building in<br />

Preston through the power of public spending, a<br />

co-operative neighbourhood management review<br />

taking place in York, and the work of her own<br />

council to tackle domestic abuse, “which is saving<br />

lives every day”.<br />

“The time for co-operatives is now,” she added.<br />

“We make the difference.”<br />

The right ingredients<br />

/sumawholefoods<br />

Perfected over 40 years of worker co-operation<br />

Find us in your nearest independent grocery store<br />

<strong>AUGUST</strong> <strong>2018</strong> | 29


Radstock Co-operative celebrates its<br />

anniversary<br />

q Radstock opens its<br />

new Bridgwater store;<br />

below right, its purposebuilt<br />

Fromefield site<br />

Radstock Co-operative Society – formed in 1868<br />

to serve the mining community in the Somerset<br />

town – has reached the 150-year milestone.<br />

The society traces its roots back to March<br />

1868, when there was a preliminary meeting at<br />

the town’s Workingman’s Hall to establish the<br />

Radstock Co-operative and Industrial Society.<br />

It began trading the following year from a<br />

purpose-built store at 3 Wells Road – still the<br />

location of the current head office.<br />

It now has 18 convenience stores, a large<br />

supermarket with a non-food offering, food hall<br />

and travel agency and a 1,000 acre dairy farm,<br />

and at the time of its latest annual report its<br />

membership stood at 14.429. Those results saw<br />

an increase in sales by over 10% to £42.4m. Some<br />

of this growth came from the opening of three<br />

new stores during the year, but like-for-like sales<br />

also showed a healthy increase of 4.1% on the<br />

previous year.<br />

Chief executive Don Morris said: “I am extremely<br />

proud of the society’s heritage and its service to<br />

our local communities over the past 150 years.<br />

The society’s longevity can be attributed to its<br />

commitment to co-operative principles and its<br />

resolve to remain independent.<br />

“Although the society has faced many<br />

challenges throughout its history, today we are a<br />

vibrant and expanding co-operative business.”<br />

As it turns 150, the society is continuing its<br />

growth, with a newly acquired convenience store<br />

opening this summer in Haywood Village, Westonsuper-Mare.<br />

And consultation is beginning on<br />

the redevelopment of the Radco site, which has<br />

played a pivotal role in the society’s history.<br />

Radstock is celebrating its milestone by<br />

commissioning a book telling its story – from the<br />

very first meeting where co-operators declared<br />

their intent to support the local community<br />

through the co-operative model. A book launch<br />

and signing was held at the Radstock Museum in<br />

May, attended by local dignitaries, many of the<br />

society’s key business partners and associates,<br />

directors and contributors to the book.<br />

And Radstock Museum is running an<br />

exhibition illustrating the co-op’s history in<br />

pictures, artefacts and documentary evidence,<br />

until August.<br />

All of the society’s stores are taking in local<br />

themed events, each representing a decade in the<br />

period from 1868 to <strong>2018</strong>, with displays reflecting<br />

chosen themes ranging from the Suffragettes to<br />

rock’n’roll.<br />

In May, there was a grand 150-year celebration<br />

evening at Bath Pavilion to recognise the society’s<br />

achievements over the years and pay tribute to<br />

individual colleagues and team. Guest of honour<br />

was the chair of Bath and North East Somerset<br />

Council, Karen Walker, alongside representatives<br />

from the East of England and Central England<br />

co-operatives.<br />

A spokesperson for Radstock said: “The society<br />

is proud of its mining heritage and humble roots<br />

and pays tribute to the foresight of the founding<br />

members who recognised by working together<br />

co-operatively reaps benefits for all.<br />

30 | <strong>AUGUST</strong> <strong>2018</strong>


“It is this spirit that the society continues to grow<br />

and prosper which helps to support sustainable<br />

communities within its trading areas. The society,<br />

while reflecting on the past in this 150 anniversary<br />

year, is also looking forward to the future with<br />

optimism, excitement and enthusiasm.”<br />

Timeline<br />

MARCH 1868<br />

Meeting at the Workingman’’s Hall, Radstock<br />

to establish the Radstock Co-operative and<br />

Industrial Society<br />

1997<br />

Cessation of the daily doorstep milk<br />

delivery round<br />

2008<br />

New local convenience store opened in<br />

Shepton mallet<br />

2009<br />

1877<br />

The society starts trading from a new purpose<br />

built store at 3 Wells Road, Radstock, which is the<br />

location of the current head office<br />

1908<br />

The society opens a store at Peasdown St John<br />

1959<br />

Opening of the society’s Radstock Superstore<br />

1924<br />

Opening of a store at Chew Magna<br />

RCS hold first annual gala awards and fundraising<br />

evening. New store in Coleford is opened.<br />

2012<br />

New store in Frome opened saving the Post Office<br />

from closure<br />

2014<br />

Another new store, former Little Chef,<br />

in Farrington Gurney<br />

2015<br />

Purpose-built store in Fromefield opens with<br />

exciting design features.<br />

2015<br />

Radstock gains the Fair Tax Mark<br />

2017<br />

1985<br />

Society expands into Wiltshire with new store in<br />

store in Hilperton village, near Trowbridge<br />

Re-opening of the redeveloped Radstock<br />

Superstore – renamed Radco – by radio DJ<br />

David Hamilton<br />

<strong>AUGUST</strong> <strong>2018</strong> | 31


#SBWConf18<br />

#SBWConf17<br />

Sarah Dickins<br />

Alan Mahon<br />

Dai Powell<br />

Jo Wolfe<br />

Guy Singh-Watson Ken Skates<br />

Ken Skates AM Derek Walker<br />

Keynote Host: speakers include:<br />

Alan Sarah Mahon, Dickins, Co-founder, BBC Cymru Brewgooder<br />

Wales Economic<br />

Jo Correspondent<br />

Wolfe, Managing Director, Reason Digital<br />

Ken Skates AM, Economy Secretary for Wales<br />

Keynote speakers:<br />

Derek Walker, Chief Executive, Wales Co-operative Centre<br />

Dai Powell, CEO, HCT Group<br />

Guy Singh-Watson, Founder, Riverford Organic Farmers<br />

Topics<br />

Ken Skates<br />

to<br />

AM,<br />

be<br />

Economy<br />

covered<br />

Secretary<br />

include:<br />

for Wales<br />

• Future of finance<br />

• Public sector procurement<br />

Topics be covered include:<br />

Digital transformation<br />

• Getting contracts into communities<br />

• Leadership Risk management and succession<br />

• Developing technology new products for growth<br />

• Agile Engaging project the management<br />

leaders of the future<br />

• Innovative fundraising<br />

•<br />

Power<br />

Measuring<br />

of PR<br />

social impact<br />

• Opportunities Using Welsh language for growth to generate commercial value<br />

Social Business Wales<br />

Conference 2017 <strong>2018</strong><br />

Supporting social businesses with aspirations<br />

to grow and be more sustainable<br />

Llangollen City Hall, Cardiff Pavilion, Denbighshire<br />

Thursday 5th 27th October, September, 9:30am 9.30am-4.30pm<br />

- 4.00pm<br />

This free national conference will provide an environment<br />

for knowledge exchange, sharing best practice and<br />

networking within the sector; encourage innovation;<br />

and provide opportunities to learn from and build<br />

partnerships with the private and public sector.<br />

To register for your free place, visit:<br />

bit.ly/sbwconference2017<br />

wales.coop/sbwconf<strong>2018</strong>


HOW CAN WE HELP THE<br />

CO-OP ECONOMY GROW?<br />

34-35 Doubling the<br />

co-op economy<br />

36-37 Platform 6<br />

38-40 US Worker<br />

co-ops<br />

41 Back to the chalk<br />

board<br />

42-43 Marketing<br />

Co-operation<br />

44-45 New ways of<br />

storytelling<br />

46-47 Marketing share<br />

offers<br />

<strong>AUGUST</strong> <strong>2018</strong> | 33


HOW DO WE DOUBLE<br />

THE SIZE OF THE UK’S<br />

CO-OPERATIVE ECONOMY?<br />

By Miles Hadfield<br />

Co-operative ownership models can provide an alternative to the<br />

UK’s “broken” neo-liberal economy, says a new report – but a “hostile”<br />

economic and legislative environment is holding this back.<br />

Co-operatives Unleashed – an independent report from the New<br />

Economics Foundation (NEF) – calls for a radical new framework to<br />

remedy the situation. This includes a Co-operative Economy Act,<br />

a co-op development agency for England and Northern Ireland, and<br />

a “John Lewis law” compelling larger private companies to transfer a<br />

proportion of profits into a worker- or wider stakeholder-owned trust.<br />

The report, commissioned by the Co-operative Party to look at how<br />

a Labour government could meet its manifesto commitment to double<br />

the size of the UK’s co-op sector, warns that since the economic crash<br />

of 2008, the UK has struggled with weak growth, stagnant wages and<br />

productivity, low investment and rising inequality.<br />

“The broken economy has lumbered on zombie-like, leading to<br />

greater inequality and a growing political tension between a relatively<br />

narrow, elite group of winners and those whose living standards have<br />

stagnated,” it says.<br />

Meanwhile, there are rising challenges brought by new technology,<br />

an ageing population, changing patterns of work and environmental<br />

problems. Co-ops offer solutions to this, the report says, because they<br />

are purpose-driven, democratic, accountable and have proven more<br />

resilient and productive than conventional businesses.<br />

Speaking at the launch of the report at Parliament on 3 July, Co-op<br />

Party general secretary Claire McCarthy said she hoped it would be a<br />

“real resource” for the movement and would “fire the starting gun” for a<br />

transformation of the economy.<br />

In the report, authors Mathew Lawrence, Andrew Pendleton and<br />

Sara Mahmoud call not just for a doubling of co-op turnover, but for a<br />

“profound transformation in business ownership”.<br />

Below: The report looks at ways to grow the co-op sector<br />

They warn that co-ops are being held back<br />

by “an absence of legislation and policy,<br />

institutional support, advice, incentive<br />

and promotion.<br />

“With an economy that does nothing to help<br />

co-ops thrive and everything to create a hostile<br />

environment for models of co-operation, it<br />

is unsurprising that the UK has one of the<br />

smallest sectors of any country,” they add.<br />

The report suggests five interlocking steps to<br />

remedy the situation:<br />

• A new legal<br />

framework for<br />

co-operatives<br />

• Finance that serves<br />

the co-operative<br />

agenda<br />

• Deepening co-op<br />

capabilities<br />

through a<br />

Co-operative<br />

Development<br />

Agency<br />

• Transforming<br />

business ownership<br />

• Accelerating<br />

community wealth<br />

building initiatives<br />

34 | <strong>AUGUST</strong> <strong>2018</strong>


Above: Shadow chancellor John McDonnell<br />

“Growth in co-operation and the<br />

democratisation of business will likely stall<br />

unless we transform the hostile economic<br />

environment into one that is conducive,” says<br />

the report. “To this end, we also recommend<br />

a ‘heartbeat’ policy we call an Inclusive<br />

Ownership Fund.”<br />

Under this proposal, “all shareholder- or<br />

larger privately owned businesses would<br />

transfer a small amount of profit each year<br />

in the form of equity into a worker or wider<br />

stakeholder-owned trust. Once there, these<br />

shares would not be available for further sale.<br />

“Partnership stakes carry with them<br />

democratic control rights over the<br />

management and direction of the business. In<br />

many respects, our proposal for an Inclusive<br />

Ownership Fund can be thought of as a John<br />

Lewis law.”<br />

Other recommendations include a<br />

Co-operative Economy Act which would<br />

include a right-to-own measure, supporting<br />

employee buy-outs in business transitions. At<br />

the launch, Mathew Lawrence said that, with<br />

a generation of baby-boomer business owners<br />

approaching retirement age, a “tsunami of<br />

business successions” was on the way, offering<br />

a vital way to grow the movement.<br />

The report also wants a national investment<br />

bank that includes a mandate for patient<br />

risk capital specific to the co-op, mutual<br />

and social enterprise sector; legislation<br />

similar to that existing in Europe for the<br />

creation of mutual guarantee societies;<br />

co-operative enterprise grants for the<br />

unemployed; and a stronger framework for the<br />

Preston model of local procurement.<br />

Mr Lawrence said the co-op model was<br />

powerful because it addresses one of the core<br />

problems of the UK economy, the imbalance of<br />

ownership.<br />

“It’s really no coincidence that in the last 70-80 years there were two<br />

deep transformations of economy, under Attlee and under Thatcher,”<br />

he said. Both were to do with ownership – through nationalisation and<br />

privatisation – and now, he said, the country is due a third “much-needed<br />

transformation”, this time to democratise ownership.<br />

Labour’s shadow chancellor John McDonnell echoed this<br />

view, adding that the pledge to double the co-op economy was<br />

“pretty timid as a commitment ... I think we can do much better<br />

than that”.<br />

He said the report would help a Labour government meet its commitment<br />

to democratising the economy. “This is a really exciting period where<br />

we’re developing the ideas and commissioning expert resources,” he said,<br />

adding that he wanted to put the ideas in the NEF report into Labour’s<br />

first Queen’s speech.<br />

“We’re taking the promises from the last manifesto and new ideas. Just<br />

in case this government does collapse, we’re trying to transfer policies<br />

into an implementation manual,” he said.<br />

Mr McDonnell believes the ideas in the report would help Labour take<br />

over the Conservatives’ mantle as the party of business, at a time when<br />

the government was falling out with business leaders over Brexit.<br />

He said he wanted to democratise the decision-making process, with<br />

opportunities for “a renaissance in local government” and scope to use<br />

ideas such as the commons and trust model to change land ownership.<br />

But – while some in the Co-op Party have argued for mutual models for<br />

transport and utilities – he said: “We will use the traditional mechanism<br />

that Attlee developed” of full nationalisation for rail, water, the<br />

Royal Mail and energy.<br />

Below: Sara Mahmoud and Mathew Lawrence from NEF at the report launch with<br />

Labour/Co-op MP Jim McMahon<br />

Read the New Economics<br />

Foundation report at<br />

s.coop/29e2t<br />

<strong>AUGUST</strong> <strong>2018</strong> | 35


PLATFORM 6:<br />

HELPING THE MOVEMENT<br />

SEIZE ITS MOMENT<br />

By Susan Press<br />

It is something of a paradox that at a time when<br />

the co-operative movement is in pole position<br />

to transform our economy, the number<br />

of co-op development agencies and<br />

bodies offering support to new start-ups<br />

has significantly fallen. But all that could<br />

change, thanks to an online initiative to<br />

consolidate knowledge and expertise using the<br />

latest technology.<br />

Platform 6 Co-operative is headed by Dr<br />

Mark Simmonds, who for the past six years has<br />

been helping people start and grow co-ops via<br />

Co-op Culture, a consortium of members and<br />

associates with wide experience of supporting<br />

co-operatives. It conducts research, and offers<br />

advice on everything from feasibility studies<br />

and finance to drafting community share<br />

offers, grant and loan finance, governance<br />

and structures, and delivering training and<br />

workshops. So far it has helped clients in fields<br />

including agriculture, energy,. housing and<br />

food co-ops.<br />

Dr Simmonds has a long association with<br />

Co-operatives UK and currently occupies<br />

the co-operative development seat on its<br />

board. He agrees that recent years have<br />

not been easy for traditional co-operative<br />

development agencies (CDAs) and co-op<br />

development bodies (CDBs) – but says their<br />

decline started much earlier.<br />

“The main problem is the lack of funding<br />

streams which are available for development,”<br />

he says. “CDAs were doing well until Margaret<br />

Thatcher pulled the funding plug from central<br />

government in the 1980s and over the years<br />

most of them have fallen by the wayside<br />

– although there are about half a dozen<br />

left in places like Coventry, Warwickshire<br />

and Lincolnshire.<br />

“The CDB Forum, hosted by Co-operatives<br />

UK, is still up and running and there are still<br />

about 25 CDBs but they have really struggled<br />

for a variety of reasons including overheads<br />

and the fact there is now more paid work with<br />

social enterprise rather than co-operatives.”<br />

He adds: “At Co-op Culture we realised we<br />

had a lot of expertise within co-ops we had<br />

supported over the years – and lots of them<br />

were already doing development work. But it wasn’t paid and it was under<br />

the radar. The only thing there purely for co-ops is the Hive, funded by the<br />

Co-operative Bank and run by Co-operatives UK. However this is limited<br />

and very competitive.<br />

“Power To Change has lots of Lottery money in trust but it is tied to<br />

community businesses and many co-ops are not eligible. We knew we<br />

could get lots of work supporting community stuff but not worker co-ops<br />

who are the people we want to work with. There is huge demand out there<br />

but it is under-resourced.<br />

“We thought could we create a fund for the whole co-op movement<br />

which would allow people to put money in. That’s where the idea for<br />

Platform 6 came from.”<br />

Platform 6 aims to grow the co-operative economy through the peerto-peer<br />

provision of high-quality expertise, services and funding using a<br />

co-operatively owned and controlled digital platform.<br />

It was incorporated as a co-operative just a month ago and its founder<br />

members are planning a comprehensive network of co-operative<br />

expertise and shared resources. They hope this will generate funds for<br />

co-operative development and broker relationships to deliver formal cooperative<br />

business support to new and existing co-operatives.<br />

If all goes to plan, the network will be developed by the members<br />

through Loomio, a platform which allows online discussion and<br />

structured decision-making by members supporting each other through<br />

peer-to-peer advice. The idea is that the platform will fund payment for<br />

co-operative development consultancy work as well as events training,<br />

workshops and pretty much anything else members want to fund.<br />

Above: Platform 6 has worked in areas including agriculture<br />

36 | <strong>AUGUST</strong> <strong>2018</strong>


Above: Mark Simmonds of Platform 6<br />

“Platform 6 was incorporated<br />

as a co-operative about a month<br />

ago,” says Dr Simmonds, “and there are now<br />

50 people in our working group which will<br />

explore the platform and how it operates. We<br />

are opening up membership so anyone can<br />

become a member who subscribes a minimum<br />

amount of £1 a week.<br />

“The other thing we want to do is improve<br />

knowledge of resources, which is currently<br />

quite poor. We are creating an online database<br />

of all UK co-operative development resources.<br />

It will be a bit like Wikipedia, anyone can go<br />

on and edit it and the co-op movement will<br />

have a shared resource. We are asking people<br />

to sign up, join our e-mail list and support<br />

us financially.”<br />

The development of Platform 6 follows a<br />

report released in January by Co-op Culture<br />

which identified lack of finance and startup<br />

support as the key issues affecting the<br />

ability of worker co-operatives to get off the<br />

ground. They supported the idea of Barefoot<br />

Co-operative Development Practitioners,<br />

working with Co-operatives UK to develop<br />

training courses to help new and developing<br />

co-ops. It is also hoped that retail co-operative<br />

societies will opt to put more money into<br />

co-operative development as Platform<br />

6 evolves.<br />

The initiative arrives on the heels<br />

of Co-operatives Unleashed – an independent<br />

report from the New Economics<br />

Foundation into how Labour could deliver<br />

its 2017 manifesto commitment to double the size of the co-op<br />

economy and build an alternative to austerity and neo-liberalism<br />

(see pages 34-35.)<br />

It calls for a radical new framework with many exciting proposals including a<br />

Co-operative Economy Act, a co-op development agency for England<br />

and Northern Ireland, and a “John Lewis law” compelling larger private<br />

companies to transfer a proportion of profits into a worker- or wider<br />

stakeholder-owned trust.<br />

Dr Simmonds agrees the potential for the co-operative movement to<br />

grow is enormous. ”If we are to double the size of the co-op movement<br />

then we need to double the size of co-op development,” he says. “There is<br />

a massive opportunity here.”<br />

Last week, founder members of Platform 6 took part in Open <strong>2018</strong>,<br />

a conference which drew more than 400 co-operators, academics and<br />

politicians to explore the potential of platform co-operatives to harness<br />

the latest technology and bring the movement together.<br />

“We are entering very interesting and exciting times with a lot<br />

of challenges around resources and energy constraints,” says Dr<br />

Simmonds. “The economy is going to have to change radically and co-ops<br />

are very well placed to help that.<br />

“Horizons will contract and we are going to have to relocalise trade<br />

because of things like fuel shortages. There is a new wave of co-operation<br />

coming from the new economics and a growing commitment to solidarity<br />

and equity via local problem-solving economies.”<br />

He adds: “The last time we had such a massive explosion of cooperatives<br />

was during the early expansion of capitalism into large urban<br />

centres. The Rochdale Pioneers led the first Transition Town. Every<br />

community can be a community of co-operative enterprise operating on<br />

a human scale.<br />

“The problem we are addressing is the underfunding of co-ops<br />

– so we are building lifeboats rather than ocean liners and making sure<br />

they are ready to float. We are looking forward to developing an active<br />

and engaged community of practice and opening up co-op development<br />

to everybody with a huge amount of expertise.”<br />

u More information at platform6.coop<br />

“If we are to double<br />

the size of the co-op<br />

movement then we need<br />

to double the size of<br />

co-op development.<br />

There is a massive<br />

opportunity here ...”<br />

<strong>AUGUST</strong> <strong>2018</strong> | 37


WHAT HAS CAUSED THE<br />

NUMBER OF U.S. WORKER<br />

CO-OPS TO NEARLY DOUBLE?<br />

By Rebecca Harvey<br />

Ten years ago, there were around 350 worker co-ops in the USA. Now there are nearly 600, largely thanks to a perfect storm<br />

of economic and social change. This has been witnessed by the United States Federation of Worker Cooperatives (USFWC), the<br />

national grassroots membership organisation for worker co-ops, whose mission is to ‘build a thriving co-operative movement<br />

of stable, empowering jobs through worker-ownership’.<br />

Executive director of the organisation<br />

is Esteban Kelly, who came to co-ops<br />

through student housing co-operatives<br />

in Berkeley, California, before organising<br />

co-ops across Canada and the US with the<br />

North American Students of Cooperation<br />

(NASCO). He has since served on numerous<br />

boards including the USFWC, the US<br />

Solidarity Economy Network, the National<br />

Cooperative Business Association (NCBA-<br />

CLUSA) and the Cooperative Development<br />

Foundation (CDF), and is a co-founder of the<br />

cross-sector Philadelphia Area Cooperative<br />

Alliance (PACA).<br />

“My work day-to-day is weird,” he says.<br />

“We’re national and it’s a big country! We’re<br />

at the beginning of this major growth curve<br />

of worker ownership and worker co-ops<br />

becoming much more mainstream. I’m doing<br />

my best to figure out what I need to do at any<br />

given moment to tap into the right interests,<br />

resources and energy.”<br />

USFWC has around 200 members – some<br />

are co-op developers or local networks, but<br />

most are individual businesses that are worker<br />

co-ops or democratic workplaces. “A few are<br />

start-ups, and we also have a new category<br />

for businesses that recently converted to<br />

becoming worker co-operatives. They have<br />

been operational in running their business for<br />

a while, but are really young and new to the<br />

idea of doing this in a co-operative way.”<br />

A PERFECT STORM<br />

Over the last decade or so, he has witnessed<br />

the number of worker co-ops in the USA grow<br />

exponentially. What has caused this?<br />

“It’s not easy to put my finger on, so here<br />

are some of my own hunches,” says Esteban.<br />

“I think it’s one of these right timing / perfect<br />

There are now 80 co-ops in New York, up from around 12<br />

38 | <strong>AUGUST</strong> <strong>2018</strong>


the very start. “Even at our founding conference, we were clear that our<br />

leadership was multiracial and that we were disproportionately supporting<br />

the leadership of people of colour, low income people, immigrants,<br />

women – and so we had this blended leadership at the beginning.<br />

“Our national conferences [which are now held every other year] have<br />

always had this very intentional, very aspirational, very forward looking<br />

sense. We got out of the mindset that the work we were doing was to<br />

just to serve who we currently are. That mattered a lot as it meant that<br />

we had this bigger promise – our mandate is helping to bring about the<br />

vision that we know is possible for everyone who is using this model,<br />

at the same time as supporting and grounding the leadership of the<br />

existing co-operatives.”<br />

Demographically, white worker owners are only the second-largest<br />

group within USFWC membership, at about 40%. “It’s 42-43% Latino<br />

and the other 20% or so is other people of colour, mostly black, and then<br />

maybe 5-6% Asian, including South Asia or Middle Eastern.”<br />

A DIFFERENT WAY TO DO THINGS<br />

Esteban Kelly, executive director, USFWC<br />

storm kind of things. There was an alignment<br />

of enough weird things that sparked at a<br />

certain point.”<br />

One of these things was a shift at USFWC<br />

itself. Founded in 2004, the organisation’s<br />

traditional power base was long-established<br />

worker co-ops which tended to be “more<br />

middle / upper middle class”, involving people<br />

who saw co-operatives “as an alternative,<br />

an opportunity to opt out of the traditional<br />

economy”.<br />

“Within a few years of USFWC being formed,<br />

we saw the power of the co-op model to<br />

address all of the social, racial and economic<br />

issues that were motivating the beliefs, values<br />

and politics of our own different communities<br />

– but everyone was doing that outside of the<br />

co-operative sector,” he says.<br />

“Then researchers who weren’t in co-ops<br />

but were part of our ecosystem, lenders who<br />

were starting their shift towards socially<br />

responsible impact investing, and community<br />

economic developers that were looking at<br />

different kinds of community, all started coming<br />

together with worker co-ops saying: ‘this<br />

[co-op model] seems to have served white people<br />

really well. What about bringing some of this<br />

wealth and success to communities of colour,<br />

to immigrant communities, black and brown<br />

workers?’ So at some point, our culture started<br />

evolving and shifting around that.”<br />

But diversity was at the core of USFWC from<br />

The 2008 financial crisis was a big catalyst, too, says Esteban.<br />

“When the collapse happened, there was suddenly a hunger for another<br />

way to do things. We started having people who were in thought<br />

leadership and positions of power saying ‘OK, let’s take a closer look at<br />

this co-op thing – and especially this worker co-op thing’.”<br />

Around the same time, filmmaker Michael Moore produced the<br />

documentary Capitalism: A Love Story (2009) which profiled worker co-ops,<br />

including some of USFWC’s members. And then in 2011 Occupy Wall Street<br />

happened. “People were literally in encampments all over the world saying<br />

‘Capitalism, that’s the problem. But what are the solutions?’ and sitting<br />

down, telling each other about co-operatives. And then the International<br />

year of Co-operatives happened in 2012. All of these things just built<br />

on each other.”<br />

Throughout all of this, USFWC had begun to build its co-operative<br />

development wing, a nonprofit called the Democracy at Work Institute,<br />

to ensure that worker co-operative development in economically and<br />

socially marginalised communities was adequately supported, effective,<br />

and strategically directed. “This was able to capture philanthropic grants,<br />

and plug this into the engine of expertise and networks,” he says. “We<br />

were able to use that to run training institutes, and to build up a field of<br />

co-operative development that we realised was missing in our ecosystem.<br />

We needed more experts, more co-operative lawyers, more community<br />

organisers to understand this model - more people embedded in nonprofits,<br />

to train them about the co-operative business model so they<br />

could become partners with us.”<br />

There was local growth, too. In 2014, Bill de Blasio was elected mayor<br />

of New York City under a mandate of left-wing populism. “Newly<br />

appointed staff, some of whom were friends of friends of friends of<br />

USFWC, were saying ‘I’m in a position of power, what can I do that would<br />

be helpful?’”<br />

That was a game changer as more funding avenues opened up, with<br />

dollars flowing into an ecosystem that supports, incubates, trains and<br />

further develops worker co-ops. “We’re getting $3.8m this financial year,”<br />

says Esteban. “Our local chapter in New York has a bigger budget than<br />

we do because they’re able to tap into that funding, so they’re able to<br />

do a lot of programming and also raise the profile of worker co-ops. Now<br />

we believe there are about 80 co-ops in NYC alone. When this all started<br />

there were about 12.”<br />

<strong>AUGUST</strong> <strong>2018</strong> | 39


TELLING STORIES<br />

So how can the stories of all these hugely diverse businesses be told?<br />

Esteban believes that any kind of marketing has to be organic “in the<br />

sense that we can’t mimic what other businesses do, who focus on just<br />

one thing. We’re multifaceted. We’re in every sector. We’re organised in<br />

different ways, whether that’s worker-owned, or farmer-owned, etc, so<br />

we can’t be lazy like that. I think it means we need to be much more<br />

adaptive to audiences.”<br />

He adds: “If you’re talking about worker co-ops and you’re targeting<br />

a millennial audience, maybe that story is about how co-operatives<br />

could be a better solution to the crisis of building a career, because of<br />

the dismantling of the traditional workplace. There’s a whole angle there<br />

of entrepreneurship and value alignment that speaks to the ‘millennial<br />

demographic’. So that’s one story – but it’s not the same story you’re<br />

going to tell to a baby boomer.<br />

“We’re dealing with a very diverse sector. We’ve got everyone from<br />

engineers that are making car parts for Tesla, to immigrant workers<br />

who are cleaning homes, or driving taxis or landscaping. And of course<br />

everything in between, it really runs the full gamut. So how do you tell that<br />

story? Well, the answer is that it’s not one story.<br />

“It’s about being able to find ways of being specific, highlighting people<br />

rather than the model, getting the stories of entrepreneurs or worker<br />

owners to build the empathetic hook.”<br />

He gives the example of a brew pub: “People are interested in beer –<br />

that’s the hook. It’s sexy, they’re excited. We can say: ‘Here’s a brew pub<br />

that everyone’s excited about’. And because they are already excited, then<br />

we can talk about it being worker-owned and about it being empowering.”<br />

It’s also about “sneaking co-operation into other places” instead of<br />

co-ops just telling their own stories, says Esteban. “We have started talking<br />

“Opportunity Threads is one of many worker-co-op success stories in the USA.<br />

It’s an immigrant-owned cut and sew textile factory in North Carolina, set up in a<br />

traditional textile region that has seen factories were dismantled and jobs shipped<br />

overseas. The co-op has around 60-80 worker-owners, almost all immigrants, who<br />

are connected to a whole value chain: they’ll source the cotton from an employeeowned<br />

cotton place, do the cut and sew and ship it to another worker co-op that<br />

does silk screening. Then they’ll sell the bags for a consumer co-op grocery store,<br />

or the USFWC conference T-shirts. We’ve helped them connect to markets and<br />

opportunities, and also helped connect these immigrant workers and their families<br />

to formal healthcare for the first time.” - Esteban Kelly<br />

about how do we get people in Hollywood who<br />

are writers on shows to include background<br />

characters or sub-plots where someone is<br />

involved in a co-operative, or somebody sells<br />

their business to the workers, or something. It’s<br />

in science fiction too – Kim Stanley Robinson<br />

writes about that stuff all the time, as did<br />

Ursula K Le Guin.”<br />

USFWC has also found some success and<br />

breakthroughs telling stories about what<br />

are traditionally thought of as conservative<br />

small business.<br />

“[There’s a] myth that co-operatives are all<br />

alternative, leftist and progressive – sure they<br />

might be, and many of them certainly are – but<br />

they’re also not exclusively that,” he says.<br />

“It’s important to also share the stories<br />

of co-ops which, for example, manage to<br />

stabilise rural communities that have fewer<br />

economic opportunities, like where some guy<br />

sells his hardware store to the workers and<br />

it becomes a worker co-op – now you have a<br />

rural co-operative in a conservative area where<br />

you have worker owners who feel empowered.<br />

They’re excited about it, so they tell the<br />

story themselves.”<br />

He highlights the importance of telling<br />

“stories which aren’t just ‘we’re all progressive’<br />

or ‘we’re all well-educated white radicals’ – but<br />

which also say ‘we’re black-run businesses’,<br />

and ‘we’re immigrant-run businesses’”.<br />

It’s also important to “be able to include a<br />

counter-narrative,” he says. “So when people<br />

say ‘oh, all you do is in the caring economy -<br />

childcare and homecare - we can say ‘no, no, no,<br />

we also actually do this other thing’. Or they say<br />

‘oh, you only do service-sector low-wage jobs’,<br />

we can say ‘actually we have high-end jobs too’.<br />

“I think we need that nimbleness<br />

to help people expand the frame<br />

of what they think of as co-operatives.”<br />

40 | <strong>AUGUST</strong> <strong>2018</strong>


BACK TO SCHOOL<br />

By Rebecca Harvey<br />

CO-OPERATIVES PROVIDE EDUCATION AND<br />

TRAINING FOR THEIR MEMBERS, ELECTED<br />

REPRESENTATIVES, MANAGERS AND<br />

EMPLOYEES SO THEY CAN CONTRIBUTE<br />

EFFECTIVELY TO THE DEVELOPMENT OF THEIR<br />

CO-OPERATIVE. THEY INFORM THE GENERAL<br />

PUBLIC, PARTICULARLY YOUNG PEOPLE AND<br />

OPINION LEADERS, ABOUT THE NATURE AND<br />

BENEFITS OF CO-OPERATION.<br />

~ The fifth co-operative principle, as published<br />

by the International Co-operative Alliance<br />

The co-op sector can only grow if people know<br />

about the business model in the first place.<br />

And at a time when syllabuses of business<br />

courses rarely mention co-ops, a connection<br />

with education institutions – in particular<br />

schools – is more important than ever.<br />

These connections come in different shapes<br />

and sizes, tailored to suit the capacity of the<br />

co-op and the needs of the school.<br />

Sometimes it takes the form of financial<br />

support. Heart of England Co-op recently<br />

awarded SS Peter & Paul Catholic Primary<br />

School £1,000 towards the purchase of 30<br />

musical instruments, while Tamworth Co-op<br />

has helped a local pre-school purchase pots<br />

and pans for a new outdoor mud kitchen,<br />

as well as small log chairs and dressing-up<br />

clothes. And Midcounties has been working<br />

with schools to help save energy through its<br />

Green Pioneers programme.<br />

Others make this connection through<br />

meaningful work experience placements;<br />

Central England, for example, created a<br />

pioneering initiative giving opportunities to<br />

students with special educational needs (the<br />

SENce to Aspire programme), while Unicorn<br />

Grocery Worker Co-operative in South<br />

Manchester hosts school visits and provides<br />

placements.<br />

Lincolnshire Co-op is doing interesting work<br />

with schools as well, running free education<br />

sessions on Fairtrade, employability skills and<br />

alcohol awareness, among others, tailored to<br />

different key stages.<br />

The Co-op Academies Trust, a charity<br />

controlled by trustees appointed by the Co-op<br />

Group, operates 12 academies across Greater<br />

Manchester, Stoke-on-Trent and West<br />

Yorkshire, with more to come. The Trust’s aim is<br />

that “children and young people and those that<br />

work for the Trust understand the benefits of<br />

co-operation and how a co-operative approach<br />

can make life fairer for all in the modern world,<br />

by applying co-operative and ethical values”.<br />

Recently, Co-op News visited students at the Co-op Academy in Leeds,<br />

where co-ops – and their history – are covered in PSHCE (Personal, Social,<br />

Health and Citizenship Education) lessons.<br />

“The people starting co-ops wanted to change the way businesses and<br />

supermarkets worked as they didn’t think the current system was fair,”<br />

said Salah Doudai, a year 10 pupil. “Co-ops are about communities coming<br />

together for a particular reason, to solve a problem,” adds year 8 student<br />

Lamek Abraha.<br />

But these pupils don’t think that co-ops do enough to tell people what<br />

they are and what they do. “Some people don’t know what you’re on about if<br />

you say ‘co-op’ to them, so I think people need to learn about co-ops more,”<br />

says Fayann Whitney from year 7. They think that worker co-ops are a good<br />

thing, too. “It’s important that everyone is treated equally, in the workplace,<br />

and everyone gets paid what they deserve,” says Salah.<br />

One problem, they all agree, is that TV ads for Co-op Food are the only<br />

time they hear about co-ops outside school. “The adverts don’t talk about<br />

all the other parts of what a co-op is and does,” says Lamek – and young<br />

people “don’t really watch TV any more anyway.”<br />

“Since we have mobile phones, social media, streaming apps, things like<br />

that, the adverts don’t mean anything to us,” says Salah. These students<br />

use YouTube, Instagram and Snapchat, where ads are tailored to the content<br />

they watch – and are largely skippable.<br />

Another problem is that the adverts aren’t relevant to them, says Syeda<br />

Sumayya Ali, from year 8. “We’re more interested in things like social media<br />

and technology. A food advert doesn’t mean anything to us. Maybe everyone<br />

needs an induction day, like you have before high school – an induction to<br />

co-ops to learn about the different types while finding it fun. If people are<br />

interested about it, then they would spread it on.”<br />

The students also think more should be taught about co-ops in schools.<br />

“If you know about co-ops, then when you grow up and know what job<br />

you want to do, you can set up your own co-op rather than just looking for<br />

something,” says Fayann.<br />

Salah adds: “If people get taught about the co-op values and what they<br />

do behind the scenes, people would be more inclined to get involved. Today<br />

a lot of people are all for values like equality and diversity. At the moment<br />

though, too many people aren’t really aware of what co-ops are doing - they<br />

think it’s just another food store.”<br />

<strong>AUGUST</strong> <strong>2018</strong> | 41


HOW TO MARKET THE<br />

CO-OPERATIVE DIFFERENCE?<br />

Co-operatives are a unique form of business, each with a different story. So what’s the<br />

best way to tell these stories? Nine co-op communication specialists give their top tips.<br />

OLI WATTS, HEAD OF COMMUNICATIONS AND COMMUNITY AT THE EAST<br />

OF ENGLAND CO-OPERATIVE<br />

“The key is to use absolute authenticity to make a lasting, powerful impact.<br />

The truth is there is not one thing that sums up our co-op difference;<br />

it’s all the little things that we do differently every day because we are a<br />

co-op. We call this ‘Small things, big difference’. The abundance of stories<br />

we use to explain this concept are always from real members, customers<br />

and colleagues – and mean we can authentically show what it means to<br />

be a co-operative”.<br />

LEIRE LUENGO, DIRECTOR OF COMMUNICATIONS<br />

AT INTERNATIONAL CO-OPERATIVE ALLIANCE<br />

“Tell how, tell<br />

why, tell who.<br />

Cooptelling”<br />

NICOLA HUCKERBY, MANAGER OF<br />

COMMUNICATIONS, MEMBERSHIP AND<br />

EVENTS AT THE CO-OPERATIVE COUNCILS’<br />

INNOVATION NETWORK AND CO-OPERATIVE<br />

COMMUNICATIONS AMBASSADOR AT<br />

BRANDING.COOP<br />

“Remember that people are looking for ethical<br />

values-based businesses to deal with. You<br />

have to make it easy for them to find you – so<br />

use a .coop domain and the COOP Marque at<br />

every opportunity. Tell everyone you meet that<br />

you are proud to be a co-op. People love facts,<br />

so tell them you are one in 1.2 billion, and that<br />

there are 7,226 co-ops in the UK. It’s a great<br />

conversation starter!”<br />

Evelyn Rutter, Funeral Bereavement Support for East of England Co-op<br />

SARAH CHILTON, HEAD OF CUSTOMER INSIGHT AND MARKETING AT THE<br />

SOUTHERN CO-OPERATIVE<br />

“We market our difference by actually ‘doing,’ this in turn creates the<br />

stories that we are able to tell. At Southern Co-op, we are committed<br />

to working together with our members, customers, colleagues<br />

and others for the benefit of our communities across the south of<br />

England. Our vehicle for doing this is our Love Your Neighbourhood<br />

programme. It is the difference that we make in our communities<br />

which forms a core element of how we talk about Southern<br />

Co-op. After all, advocacy from our customers in the surrounding areas<br />

of our stores is a very powerful marketing tool.”<br />

ANDREW MALLINSON, MARKETING AND<br />

COMMUNICATIONS OFFICER AT THE<br />

CO-OPERATIVE COLLEGE<br />

“The one thing that I’d say is most important to<br />

remember when marketing your co-operative<br />

difference is knowing who your audience is.<br />

What are their interests, what publications<br />

do they read, where do they spend their free<br />

time? Identifying key characteristics allows you<br />

to create audience personas that will help you<br />

target your products or events at people who<br />

will be most interested.”<br />

42 | <strong>AUGUST</strong> <strong>2018</strong>


ASHLEY SELLWOOD, COMMUNICATIONS AND MARKETING OFFICER AT THE PLUNKETT FOUNDATION:<br />

“It is important to promote how your co-op is different to others. This could be that you provide volunteer training, social clubs<br />

for local people or a community café.”<br />

Above: Becky White with Active and In Touch a Co-op Group-supported charity<br />

Plunkett Foundation supporting community pubs<br />

HELEN CARROLL, DIRECTOR OF BRAND AT THE<br />

CO-OP GROUP:<br />

“Co-ops should market themselves by shining<br />

a light on the difference they are making,<br />

rather than just trying to explain that they are<br />

different. Why co-ops exist is not a sell in itself<br />

if our actions are the same as everyone else’s.<br />

Show, don’t tell, should be at the heart of an<br />

effective co-operative marketing approach.”<br />

MIKE ERSKINE, MARKETING OFFICER, WALES CO-OPERATIVE CENTRE:<br />

“What I always try to recommend to our clients who are trying to market<br />

what makes them different is – go digging for those personal stories that<br />

lie deep within your organisation, which reflect your vision, your co-op<br />

values. Can you find an individual who has faced a tough challenge and<br />

has, thanks to the support from your organisation and other partners,<br />

tackled that challenge head on and come out the other side better for<br />

it? It is those human interest stories which have that stick factor and will<br />

make people remember your co-op difference.”<br />

LAURA DUNNE, HEAD OF MARKETING AND MEMBERSHIP AT THE LINCOLNSHIRE<br />

CO-OPERATIVE<br />

“Generally, it’s the purpose of what you’re<br />

doing that’s different because you’re a<br />

co-op, or the approach you take. We focus<br />

on these aspects in our marketing to get<br />

some standout from the crowd who are<br />

often reporting similar outcomes”<br />

<strong>AUGUST</strong> <strong>2018</strong> | 43


NEW MARKETING STRATEGY<br />

IS WELL VERSED IN THE<br />

CO-OP DIFFERENCE<br />

By Miles Hadfield<br />

A tried and tested way of marketing the co-op difference has been to<br />

“tell the co-op story”.<br />

Whether it’s celebrating the founding principles of the movement,<br />

exploring its ethical role in the community, or demonstrating its flexibility<br />

and resilience as a business model, a narrative offers a simple, engaging<br />

and relatable way to put the message across. It’s also one which chimes<br />

with the people-centric ideals of the co-op model.<br />

So perhaps it is no surprise that, with the recent boom in performance<br />

poetry and other forms of spoken word which tap into centuries-old oral<br />

storytelling traditions, co-ops and mutuals have led the way in adopting<br />

the artform to its marketing strategies.<br />

Examples include the ad campaign for the Nationwide Building Society,<br />

the annual poetry competition run by Divine Chocolate, and the Co-op<br />

Group’s choice of poet Lemn Sissay as the ambassador for its member<br />

pioneers scheme.<br />

For the <strong>2018</strong> Co-operative Fortnight, Co-operatives UK commissioned<br />

a short film to celebrate the movement from Blake House Filmmakers<br />

Co-op, which featured Isaiah Hull, who emerged from Manchester poetry<br />

collective Young Identity.<br />

Simon Ball from Blake House says: “We chose to commission a poem<br />

for this piece as we wanted to change the language used to describe<br />

co-operatives from a jargon-based technical, business-centric approach<br />

to one that captures the essence and spirit of the movement.<br />

Below: Letterpress Collective, taken from Co-operate, the film commissioned by<br />

Co-operatives UK and produced by Blake House Filmmakers Co-operative.<br />

“We didn’t think<br />

of the piece in<br />

marketing terms<br />

as we wanted<br />

to celebrate<br />

the diversity<br />

and richness of<br />

the movement<br />

without even<br />

thinking of a<br />

‘co-op difference’”<br />

“In our experience the co-op movement has<br />

a branding issue in differentiating itself from<br />

the Co-op Group and Bank because of their<br />

use of the name and their prevalence in<br />

society. We wanted to draw attention to<br />

the diversity of co-ops to the wider world,<br />

the great things they can achieve and<br />

the values that they hold. A poem was<br />

the perfect medium to present this in<br />

combination with the other elements present<br />

in the film.”<br />

The spoken word scene is not just a good fit<br />

with the diverse nature of the movement, it also<br />

has a strong grassroots element, drawn from<br />

small, self-organised events in libraries, pubs,<br />

cafés and community centres – which again<br />

mirrors the strong community base of the<br />

co-op movement.<br />

44 | <strong>AUGUST</strong> <strong>2018</strong>


“The grassroots element to production was an important aspect for us<br />

to include,” says Simon. “We don’t see the poem as a separate entity from<br />

the film and vice versa, but as one cohesive piece that works because<br />

each element of the process complements the other.<br />

“Filming with over 70 co-operators, we were able to collaborate with<br />

each featured co-op to show their essence and heart by not using<br />

traditional marketing setups, but a more stylised documentary approach<br />

that was based on the words of the poem. In turn, this methodology<br />

Above: Isaiah Hull, Manchester based-poet. Credit: Cesare De Giglio Photography<br />

was presented to the poet before the commission in anticipation of this<br />

method of filmmaking.”<br />

He adds: “We believe strongly in the positive and transformational<br />

impact co-ops have in the world and this commission was a brilliant<br />

opportunity for us to try to begin articulating this impact. We believe<br />

that focusing on the personal and collective, rather than enterprise,<br />

is essential for co-operatives. This is how we became aware of the<br />

movement and we see it as an integral part of how co-operatives should<br />

speak to the wider world.”<br />

One of the poets to feature in an ad campaign developed by creative<br />

agency VCCP for the Nationwide Building Society, Jo Bell, says its mutual<br />

ethos was one reason behind her decision to join the project.<br />

She tells the News: “I did think about the ethics – I did some homework<br />

on Nationwide and it’s amazing how the people who work at Nationwide<br />

really believe in it. It’s not a bank, its a mutual.<br />

“When I did my first ad, I looked at the history, I talked to people who<br />

looked after the brand and they were genuinely committed to mutualism<br />

and saving safely. I was struck by the idea it was specifically so people<br />

who had been excluded by banks could be given a way in.”<br />

Jo used the narrative aspects of poetry to tell an old and significant cooperative<br />

story – that of Elizabeth and Alfred Idle, who became the first<br />

people to sign a mortgage with the building society in 1884.<br />

“These were genuinely people who wouldn’t have been able to borrow<br />

anywhere else,” she says. “They were doing this to make the lives of their<br />

nine children better.”<br />

Jo was originally asked to write about Alfred but realised that his wife<br />

also played a crucial role in the story. “I realised Elizabeth was working in a<br />

circulating library for working people,” she says.<br />

“She was involved too – so I said, I’m bringing<br />

her in, her name is on it as well.”<br />

Asked why poetry had an appeal to co-op<br />

and mutuals in terms of marketing, she says:<br />

“It’s a short cut to emotion – and perhaps<br />

financial institutions are harder to relate to in<br />

emotional ways. And why mutuals? I suppose<br />

the easy answer is that they’re nicer people.”<br />

She adds: “I felt more comfortable on the<br />

project when I realised they were sincerely<br />

talking about solidarity. People at Nationwide<br />

told me they’ve worked elsewhere in the<br />

financial sector and found Nationwide a much<br />

nicer place to work.”<br />

And it’s not just a one-way street when it<br />

comes to spreading the co-op word: Jo says<br />

people working in the arts can benefit from the<br />

movement and its values.<br />

“We are all living such precarious lives in the<br />

arts. We’re all in the arts because there is one<br />

individual thing we want to express,” she says,<br />

“but what I’d like to see is a bit more solidarity<br />

over things like pay. You have people taking free<br />

gigs and so on, because it’s good for exposure,<br />

and they can end up and feeling isolated. It<br />

would be good if we could get together so<br />

people feel more supported – in that sense<br />

building a community of small players so<br />

people feel part of something bigger.”<br />

u Co-operate, by Blake House Co-op and Isaiah<br />

Hull: s.coop/29yr4<br />

u Mortgage Number One, by Jo Bell: s.coop/29yr7<br />

Below: Poet Jo Bell Credit: Lee Allen Photography<br />

<strong>AUGUST</strong> <strong>2018</strong> | 45


HOW TO MARKET<br />

COMMUNITY SHARE ISSUES?<br />

INSIGHT FROM TRIODOS<br />

By Miles Hadfield<br />

Crowdfunding and community share offers<br />

are becoming more important as sources of<br />

finance, fuelled by the rise of social media and<br />

new ideas around the sharing economy.<br />

But these offers do not work unless the<br />

message goes out – which has given rise to<br />

a series of marketing initiatives which range<br />

from widespread social media campaigns to<br />

targeted messages to established investors.<br />

Among the organisations leading the way on<br />

community share offers is sustainable banking<br />

specialist Triodos, which earlier this year<br />

launched a UK crowdfunding platform.<br />

Triodos has also just launched a £4m bond<br />

issue for Burnham and Weston Energy, one of<br />

the largest community-owned solar farms in<br />

the UK.<br />

Whitni Thomas, senior investor relations<br />

manager at Triodos, says the first step to<br />

successfully marketing an offer is to consider<br />

the organisation itself. “We spend from<br />

18 months to two years working with an<br />

organisation – getting to know them and<br />

understanding their business model.”<br />

The first question is whether or not repayable<br />

capital is an appropriate model – and if so, who<br />

are the best investors?<br />

“What we find more and more is that we are able to find offers that<br />

are suitable to ordinary investors,” she says. “We’ve been raising capital<br />

from professional investors, or everyday mainstream investors, for over a<br />

decade now. And at the end of January we have made all our investment<br />

opportunities available through our crowdfunding programme.”<br />

Triodos has worked with some community benefit societies and<br />

community interest companies, and in 2015 helped Chelwood Community<br />

Energy in a multi-million pound fundraiser. It is now experimenting with a<br />

new model for community energy. Instead of structuring as a community<br />

benefit society using withdrawable shares, Triodos suggests structuring<br />

the investment as a long-term bond – which is eligible for an innovative<br />

fi n a n c eI S A .<br />

This can hold peer-to-peer loans and crowdfunded securities, and<br />

allows HMRC and the Treasury to recognise this method of channelling<br />

funds to SMEs. And it enables savers and investors to put the bond in an<br />

ISA, says Whitni. The risks mean the investment would not be suitable for<br />

a traditional stocks and shares ISA.<br />

Such methods make bonds more attractive to investors, an important<br />

consideration when marketing an offer. But for a sustainable bank seeking<br />

ethical investors, there are other considerations.<br />

“For community-owned energy, the project must repay investors but<br />

we also want to make sure a meaningful amount of benefit is derived for<br />

the community,” says Whitni.<br />

In terms of selecting a marketing approach, it depends on how<br />

much a needs to be raised, “Renewable energy tends to be a<br />

multi-million pound proposition and that is why these companies<br />

come to us. They recognise they can’t raise that just through the<br />

Below and right: Bonds are available for the solar farm operated by Burnham and Weston<br />

46 | <strong>AUGUST</strong> <strong>2018</strong>


grassroots approach,” she adds. “You need<br />

a three-pronged approach. There’s the<br />

grassroots channels, you spread the word, and<br />

get early investment from people in the local<br />

community. But we work through our platform<br />

and our community of investors, and find<br />

more sizeable investments from institutional<br />

sources. The last two is what we bring.”<br />

For smaller community projects that only<br />

require £300,000 or £400,000, Whitni says:<br />

“It is easier for those organisations to do it<br />

in a grassroots way, in its community and<br />

the surrounding area.” And in more wealthy<br />

areas, more can be raised, she adds –<br />

another consideration to bear in mind when<br />

presenting an offer.<br />

But “there’s no secret sauce” to the<br />

marketing process: “It’s just doing what we do.<br />

I guess the advantages have with our team is<br />

that we are a bank, with a public relations and<br />

communications team.<br />

“We have a promotions budget but we<br />

don’t need to pay for advertising – we rely on<br />

a community of investors and we spread the<br />

word that way. With every new offer we try<br />

to look for an interesting angle, to spread the<br />

word and generate some interest.”<br />

Triodos does this through the now<br />

tried-and-tested social media platforms such<br />

as Facebook and LinkedIn. “You’re never going<br />

to see us on the side of a bus,” adds Whitni.<br />

“We do it through Facebook posts, it’s quite<br />

low-key, and we don’t tend to really promote or<br />

advertise specific investment offers.<br />

“We just try to build brand awareness of the<br />

bank as a go-to place for where their money<br />

is going.<br />

“What we are finding – which is satisfying –<br />

is that a meaningful percentage of people who<br />

have signed up are new to Triodos Bank.”<br />

“We have a promotions<br />

budget but we don’t<br />

need to pay for<br />

advertising – we rely on a<br />

community of investors<br />

and we spread the word<br />

that way. With every<br />

new offer we try to look<br />

for an interesting angle,<br />

to spread the word and<br />

generate some interest”<br />

WHITNI THOMAS TIPS ON MARKETING A SHARE OFFER<br />

THROUGH SOCIAL MEDIA<br />

1. Be very careful not to lead on financial performance: it’s not<br />

appropriate for social media, where you don’t have enough<br />

space to accurately balance the claims you make in terms of<br />

financial performance with the risk.<br />

2. Lead on impact: The way we do it with tweets and shortform<br />

posts is to focus on what an energy organisation is<br />

going to do, how much energy it’s going to generate. The<br />

impact side is the pull.<br />

3. Tickle someone’s interest: You can’t distil whole offers –<br />

you are trying to direct them to a web page where you can<br />

get the information. So you talk about the organisation, you<br />

say ‘they are raising capital – come and have a look‘<br />

4. Emphasise the community aspect: It’s about being part<br />

of something – a lot of the language we see is ‘join up’, ‘be<br />

part of this’. It’s that sense of belonging that tends to play<br />

on social media.<br />

<strong>AUGUST</strong> <strong>2018</strong> | 47


REVIEWS<br />

A new day dawns for the world’s economic system – and<br />

the collaborative model might suit it best<br />

Collaborative<br />

Advantage:<br />

How collaboration<br />

beats competition<br />

as a strategy<br />

for success,<br />

Paul Skinner,<br />

(Robinson, <strong>2018</strong>)<br />

£13.99<br />

p Delegates at this year’s Co-operative Congress<br />

If there is a common theme to discussions of the<br />

economy – from local to global level – it is that we<br />

are undergoing a period of huge change.<br />

This has prompted the co-operative movement<br />

to argue that new business models, based on<br />

collaboration rather than competition, are better<br />

suited to the challenges and opportunities<br />

this brings.<br />

It is an idea taken up in a new book from Paul<br />

Skinner, a visiting fellow at Edge Hill University<br />

business school. He is the founder of Agency<br />

of the Future, a collaborative business consultancy,<br />

and Pimp my Cause, which assists charities and<br />

social enterprises.<br />

Modern technology has brought new opportunities<br />

for mass collaboration, he argues – and<br />

collaboration is more effective than competition for<br />

mobilising staff, customers and other stakeholders.<br />

It fosters innovation, allows growth to outstrip<br />

resources, brings a better understanding of<br />

value creation, and brings “a true understanding<br />

of human decision-making”.<br />

But how can businesses take advantage<br />

of this? Skinner argues that a new ways of thinking<br />

are needed to transform business strategy and<br />

marketing. He sets out five steps:<br />

u find a common purpose that ‘sows the seed of a<br />

new story’<br />

u create opportunities by finding ways to engage in<br />

the common purpose<br />

u engage participation by creating defined<br />

roles and customs<br />

u iterate and accelerate by developing a deeper<br />

understanding of early adopters<br />

u build partnerships to help the organisation grow<br />

faster and further.<br />

He builds his argument with a useful study of the<br />

rise and fall of the highly competitive business ethos<br />

of the last 20th century, which has “remained the<br />

dominant metaphor for business and organisational<br />

strategy”. He identifies the flaws in the model,<br />

which can lead to counter-productive goals, and<br />

see organisations understating the importance of<br />

creativity in unlocking value from their teams.<br />

And in an age of rampant business disruptors,<br />

the competitive ethos can leave organisations<br />

with a blind spot when it comes to identifying new<br />

challengers because they are so heavily focused on<br />

established rivals.<br />

It’s also unnatural, he argues, pointing put that<br />

“it is our ability to co-operate in large numbers that<br />

separates us from other species”.<br />

This leads him to his version of co-operation, the<br />

collaborative advantage – an “optimistic concept”<br />

which “recognises that value can also be created<br />

anywhere in the eco-system in which a business<br />

operates ... Organisational success is born out<br />

of fostering an optimal relationship with the entire<br />

external environment that maximises the combined<br />

total value-creating process and generates benefits<br />

for the organisation, further enhancing the<br />

lives of the customers it serves”.<br />

It’s also socially rewarding, he adds, giving the<br />

example of neurological experiments which found<br />

that working collaboratively leads to people using<br />

different parts of the their brains, which in turn<br />

triggers greater empathy.<br />

Skinner concludes with a look at how his ideas<br />

have changed his attitude to his work in marketing<br />

– which, he says: “should be about finding the<br />

optimal way to cultivate the world’s financial,<br />

material and intellectual potential for the greatest<br />

possible good”.<br />

In a world facing challenges such as poverty,<br />

climate change, terrorism and war, it’s vital<br />

that the collaborative ethos is communicated<br />

effectively, he says. As a marketing man, he<br />

frames it as a brand agenda called Surthrival –<br />

“the process of growing stronger in a world of<br />

complex risks” by building new collaborative skills<br />

and technologies.<br />

Ending the book on an optimistic note, he<br />

hopes this ethos will help the world navigate its<br />

way through the challenges to come, by “making<br />

a humanitarian out of everyone”.<br />

48 | <strong>AUGUST</strong> <strong>2018</strong>


<strong>AUGUST</strong><br />

The Fall of the Ethical Bank: how a large group<br />

of decision makers believed their own hype<br />

- and got it spectacularly wrong


DIARY<br />

CLOCKWISE FROM FAR LEFT: Greenbelt<br />

Festival includes a space for festivalgoers<br />

to learn more about co-ops;<br />

Woodcraft Folk’s symposium will look at<br />

the organisation’s many histories; The<br />

Co-operative Press <strong>2018</strong> AGM takes place<br />

in Sheffield; and Dai Powell is one of the<br />

keynote speakers at the Social Business<br />

Wales Conference <strong>2018</strong><br />

24 - 27 Aug: The Greenbelt Festival<br />

Celebrating artistry and nurturing<br />

activism, Greenbelt Festival is an act<br />

of the imagination – inspirational,<br />

provocative and fun. This year, Anthony<br />

Collins Solicitors, Co-operatives UK,<br />

Midcounties and New Internationalist are<br />

sponsoring The Exchange, a space where<br />

festival-goers can learn more about what<br />

co-operation has to offer.<br />

WHERE: Boughton House<br />

INFO: greenbelt.org.uk<br />

31 Aug - 2 Sep: UK Society for Co-op<br />

Studies – Conference <strong>2018</strong><br />

The co-op movement has always<br />

wrestled with the diversity of people,<br />

places and organisational variations<br />

that have emerged under the banner<br />

of co-operation. This conference will<br />

consider the issues arising from this<br />

diversity – and how it is contributing to<br />

the co-operative movement.<br />

WHERE: Sheffield Hallam University<br />

INFO: ukscs.coop/node/114<br />

1 Sep: The <strong>2018</strong> Co-operative Press<br />

Annual General Meeting<br />

This year’s annual conference will be<br />

held at Sheffield Hallam University<br />

Business School to coincide with the<br />

UKCS conference. The closing date for<br />

receipt of proposals is Monday 6 August.<br />

WHERE: Sheffield Hallam Business School<br />

INFO: thenews.coop/<strong>2018</strong>AGM<br />

15 Sep: Education for Social Change:<br />

The many histories of Woodcraft Folk<br />

To mark the transfer of Woodcraft<br />

Folk’s archive to UCL, and working<br />

towards Woodcraft Folk’s 100th<br />

anniversary in 2025, Education for<br />

Social Change examines the<br />

organisation’s longstanding and<br />

innovative engagement with children<br />

and young people.<br />

WHERE: UCL Institute of Education<br />

INFO: s.coop/29jg1<br />

26 Sep: Social Business Wales<br />

Conference <strong>2018</strong><br />

The free annual conference with<br />

inspirational talks, practical workshops<br />

and a celebration of business growth,<br />

featuring speakers Dai Powell (HCT<br />

Group), Guy Watson (Riverford Organic)<br />

and Ken Skates AM. The Social Business<br />

Wales Awards take place the night before.<br />

WHERE: Cardiff City Hall<br />

INFO: s.coop/29xks<br />

12-14 Oct: Co-operative Party Conference<br />

A weekend of inspiring stories, practical<br />

ideas and skills you can use to begin<br />

transforming your communities,<br />

unleashing the power of ideas to build a<br />

fairer, stronger Britain.<br />

WHERE: Mercure Bristol Grand Hotel<br />

INFO: s.coop/cooppartyconf18<br />

2-4 Nov: NASCO’s 50th Anniversary<br />

Cooperative Education and Training<br />

Institute<br />

Over 400 participants will converge on<br />

Ann Arbor, Michigan, to share ideas,<br />

learn new skills, and look at issues<br />

affecting the global co-op movement.<br />

WHERE: Ann Arbor, Michigan<br />

INFO: s.coop/asco50th<br />

22 Nov: Co-operatives UK Practitioners<br />

Forum<br />

The Practitioners Forum offers<br />

professional training for people operating<br />

in key roles in co-operative businesses<br />

large and small. This one-day event is<br />

made up of a series of specialist forums:<br />

communications; finance; governance;<br />

HR and membership.<br />

WHERE: The Studio, Manchester<br />

INFO: s.coop/29xlr<br />

50 | <strong>AUGUST</strong> <strong>2018</strong>


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REV. PEYTON’S BIG DAMN BAND × DUKE SPECIAL × GRACE PETRIE<br />

WORDS & IDEAS<br />

JACK MONROE ON POVERTY × MICHAEL EAVIS ON FESTIVALS<br />

KATE RAWORTH ON REDISTRIBUTION × JUNE SARPONG ON DIVERSITY<br />

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THEATRE & COMEDY<br />

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CELESTIAL SOUND CLOUD BY PIF-PAF × LIMBIC CINEMA<br />

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PLUS<br />

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