The Grocery Co-op Difference
Shared Harvest will be a cooperatively owned grocery store in the heart of Elgin that links consumers to affordable, healthy, locally-produced food, fosters sustainable agriculture, and contributes to the economic and cultural vibrancy of the Elgin community. We seek to increase consumer access to natural and organic, and locally grown foods and products, and provide a sustainable community-based alternative to corporate supermarkets.
Grocery co-ops differ from conventional grocery stores in many ways, including ownership, decision-making, profit distribution and purpose:
- Ownership. In a co-op, members own the business and democratically control it. In a traditional business, ownership and control are usually based on equity investment.
- Decision-making. In a co-op, each member has an equal say in how the business is run, regardless of how much they invest. In a traditional business, a small group of shareholders with the most shares make decisions.
- Profit distribution. In a co-op, earnings benefit the member-owners and the community. In a traditional corporate grocery business, profits are returned to investor-owners based on their investment.
- Purpose. A co-op operates for the benefit of its members, while a traditional business is usually motivated by a profit motive.
Will Shared Harvest be open to the public?
Yes! Like most co-ops we will welcome the general public to shop and enjoy our offerings. Additionally, we seek to be a community resource for local producers and eaters by educating the community of the benefits of healthy eating and sustainable living.
What are the benefits of ownership?
By becoming a Shared Harvest owner, you not only formalize your support for our mission and values, but you also join a community of over 1000 member households in Elgin and the surrounding community who have said “Yes” to supporting local farmers and producers, growing the market for sustainable agriculture practices, creating new jobs and supporting our local economy, and caring for our community by reinvesting dollars locally. Examples of typical grocery co-op owner benefits include:
- Patronage dividends. Most grocery co-op owners receive a share of the co-op’s profits based on how much they purchased during the fiscal year, called patronage dividends. The more a member buys, the more they are eligible to earn. Patronage dividends are usually distributed annually, at the discretion of the co-op’s Board of Directors, as a check, voucher or gift card. Some co-ops use patronage dividends to reduce the selling price of items. Others may donate unclaimed patronage dividends to a local organization.
- Member-only discounts/coupons. Most grocery co-ops provide monthly or quarterly discounts to members, owner appreciation sale days in different grocery departments, discounts on special orders, and owner-only sales. Some offer discounted or free events and classes for owners.
- A voice at the decision-making table. Shared Harvest ownership includes a right to vote for our Board of Directors, the right to run for a seat on the board, and the right to vote on policy matters brought before shareholders at our annual meeting or special meetings.
- Supporting sustainability practices. Environmental sustainability is one very key value. Our shareholders know by joining our co-op they are further supporting local and sustainable production.
Why join now before the store is open?
Ownership shares and donations now help Shared Harvest do the work necessary to advance our goal of opening our store. There are expenses involved in operating our organization now, and we need you to help us work toward opening the doors. The sale of shares now in the co-op helps us build necessary community support and financial backing.
Do I have to work at the co-op in order to shop there?
Nope. As a co-op owner, all you really have to do is enjoy shopping at the co-op! Sure, you can run for the board or participate in events if you like, but your level of participation is always entirely up to you.
Where is Shared Harvest in its development process?
We have organized ourselves and incorporated in 2012 in the State of Illinois as Elgin Food Cooperative, doing business as “Shared Harvest.” Under Illinois law, we sell shares to raise capital for opening a store. You can read our co-op’s bylaws here.
We have a democratically-elected board of directors that meets monthly, and we have committees doing the work of site evaluation, grant writing, outreach and events, marketing, and more. Partnering with the Food Co-op Initiative, a national nonprofit that provides critical support to grocery co-ops as they organize and open community-owned grocery stores, we’re connected with knowledgeable and experienced industry professionals.
We have a current market study and financial pro forma to inform site selection and financial planning, and have sold over 1500 shares. Once we’re able to secure a site with contingencies, we’ll quickly move to launch an owner loan drive, secure additional financing, and engage with a professional co-op general manager to further store design and planning activities.
In 2024, we formed the Shared Harvest Advisory Council, composed of food co-op and grocery industry professionals to advise as key business decisions are made; and Elgin neighbors and representatives from historically underserved communities to shape products we’ll carry, help us attract future employees from the neighborhood and assist with community outreach.
At our 2023 annual meeting, shareholders reaffirmed our commitment to finding a location in or adjacent to downtown Elgin. We envision Shared Harvest filling the access need for fresh foods in our downtown’s USDA food desert area and contributing to the vibrancy of downtown Elgin.
We’re one of several food co-op start-ups in Illinois including Prairie Food Co-op in Lombard, Food Shed Co-op in Woodstock, Wild Onion Market in Rogers Park and Chicago Market. Examples of other Illinois co-ops that have been around longer include Sugar Beet in Oak Park, Common Ground Co-op in Urbana, and Green Top Grocery in Bloomington.
When will the store open?
It’s challenging to set a specific date while we continue to identify a site for our store in or near downtown Elgin. Based on our city’s geographic and demographic characteristics, we know the appropriate site for our future store needs ample visibility and parking, full-size trailer truck access, and ideally on or adjacent to a busy corridor. We also know through market research that there is sufficient sales potential to support a grocery store emphasizing natural/organic and locally produced foods while offering some conventional options.
In the meantime, we’re working with industry experts and pursuing grants that could enable us to finance portions of the project. We’re also preparing to hire knowledgeable and experienced store management with a significant amount of marketing savvy.
None of this pre-development work is free, so the purchase of ownership shares and donations help things move along. It’s our member-owner equity that will leverage further financing to open the doors.
Where will the store be located?
Shared Harvest is committed to opening our store in or near downtown Elgin, IL.
Where will the rest of the financing for the store come from?
Like many start-up businesses and other grocery co-ops, we’ll need to secure loans. By selling shares, we are gathering the collateral we’ll need to seek financing. Once we have sold enough shares and a site is identified, we’ll begin a shareholder-loan campaign to receive interest-bearing loan investments. Outside of co-op shareholders, potential lenders will include traditional banks as well as non-traditional lenders that exist specifically to help start-up co-op businesses.
Other than becoming a member-owner, what else can I do to help?
Help us spread the word. Talk to your friends and family about Shared Harvest, and encourage them to join us. Many Shared Harvest owners first heard about us through word of mouth.
Host a house party. A small, personal gathering is a great opportunity for a casual, informative discussion about Shared Harvest. You provide the space, snacks, and some interested friends, and Shared Harvest will arrange for a neighborhood co-op member to give a short presentation and answer questions.
Facilitate a presentation. Are you part of a community group, church, or workplace team that would like to learn more about our mission? Contact us to arrange for a Shared Harvest board member to make a short presentation to a group you’re a part of.
Join our crew of talented volunteers. Donate your time and talent to Shared Harvest and you’ll be introduced to a caring group of volunteers. Opportunities include events, community outreach, administrative activities, writing, social media, networking and more. Join a committee. Finance, real estate, legal, business, and marketing are just a few areas where volunteers support Shared Harvest. If you can help, let us know!
Aren’t co-ops expensive?
Organic foods tend to be more expensive than conventional because organic farming and production is more labor-intensive. For example, farmers who don’t use pesticides, chemicals, or fertilizers need to use more intensive methods while growing a more sustainable food system that’s better for consumers and the environment. This is why Shared Harvest intends to offer conventional items where natural/organic foods price differences are significant.
That said, there are plenty ways to save money shopping at a co-op:
- Take advantage of specials, owner discounts and coupons. Most co-ops provide monthly or quarterly discounts to members, owner appreciation sale days in different grocery departments, discounts on special orders, and owner-only sales.
- Buy in bulk. By refilling your own containers you will save money and reduce single-use plastic. Most grocery co-ops offer lots of products in bulk – from dry goods (grains, beans, spices, nuts, flours, pasta, tea) to cleaning products (laundry detergent, soaps, etc.). Bulk purchases can also help reduce food waste because you only need to purchase the amount needed.
- Practice meal planning. Shared Harvest looks forward to offering community classes on healthy choices, such as how to shop on a budget and how to cook with vegetables and fruits when they’re in season. Search online for healthy eating on a budget for more ideas!
What if I buy a membership and the co-op doesn’t open?
If the Shared Harvest does not open and the organization is dissolved, the remaining contributions would be divided by shares and what is left over returned to shareholders.
What are Shared Harvest’s buying practices?
Shared Harvest will seek the expertise of food co-op professionals, and ultimately a general manager, when defining our buying practices. We see the responsibility of buying as an extension of our mission and values. We seek to provide a wide range of groceries and basic household products, with emphasis on produce, bulk foods, and other whole or minimally-processed foods.
- We give preference to products that are grown or otherwise produced locally or regionally, giving preference to those items produced closest to our store, all else being equal.
- We give preference to those animal products that are produced humanely and responsibly.
- We attempt to buy products from businesses that support conditions of shared wealth and non-exploitative labor practices.
- We support the sale of products that do not meet the above criteria (either in addition to or instead of a product that would otherwise receive preference) in cases where the price difference, when weighed against the above criteria, may challenge our sustainability values or damage our relevance to a large part of the community.
