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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