KANSAS CITY, MO — For early-stage brands, getting a product to market ranks right up there with R&D in terms of most challenging steps. While mainstream retailers are the most common route — and often the most desirable for brand awareness — less conventional retailers, such as food cooperatives (co-ops), can be a viable part of a distribution strategy.
In a recent EmergeCPG Retail Readiness workshop hosted by founder Julie Pryor, Heidi Traore, supplier relationship development manager for National Co+op Grocers (NCG), a retail services and purchasing cooperative, shared insights into the NCG model, partnership strategies, distribution and sales requirements, product placement and promotional programs, and best practices for submitting products.
“Co-ops are owned, controlled and used by their member owners,” Traore explained. “NCG is a business services and purchasing co-op that provides retail headquarters services to the grocery co-ops that own it. Our members formed NCG so they could be more competitive with larger chains.”
Co-ops aren’t new; many have been around since at least the ʼ70s and had a hand in laying the foundation for value-based products and building the supply chain for organics, non-GMO and fair trade.
“The supply chain our co-ops have helped build prioritizes the regenerative, resilient food system; an inclusive economy; and the fair treatment of people in a healthy environment,” Traore said.
NCG has 233 locations across 39 states and $2.7 billion in annual sales. Its co-ops have long been champions of sustainability and local sourcing, which often attracts consumers who are interested in supporting ethical, and community-focused businesses.
“Co-op shoppers are early adopters of certified, upcycled, range-free, pasture-raised, certified regenerative and reef safe,” Traore said. “Co-op shoppers purchase with purpose. These are the attributes driving some of the assortments on the co-op shelves.”
NCG programs
NCG has two primary programs: the Core Sets category management program and the Co+op Deals program. Both programs were developed to help brands with product placement and promotional efforts and are available on regional and national levels.