Real Pickles

Northeast Grown, 100% organic, fermented & raw pickles, sauerkraut, kimchi, kvass, and hot sauce

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Supporting a Regional Food System: An Interview with Myers Produce

As you may know, here at Real Pickles we are deeply committed to buying our vegetables only from Northeast family farms and selling our products only within the Northeast. One way in which we are able to achieve this, and in turn help to build a strong, organic and regional food system, is by working with small independently-owned regional distributors who bring Real Pickles to our Northeast neighbors.

Annie Myers

With this in mind, we began partnering with Myers Produce in 2016 as a way to bring our ferments deeper into the urban areas of the Northeast, and we’ve been thrilled with the results!

Myers Produce has been in operation since 2013. As a regional distributor based in Vermont, they buy vegetables and value added foods primarily from small, mostly organic farms in Vermont, Massachusetts and Maine. They then truck and sell to stores and restaurants in the New York City and Boston areas. Everything they offer has been produced in the Northeast. It’s a beautifully closed loop!

I recently chatted with Annie Myers, owner and founder of Myers Produce, about her experience delivering delicious regionally-grown food to cities in the Northeast. Read about it here, and let us know your thoughts on how regional food fits into your life.

How did you decide to start a food distribution business?

AM: I had been working on a farm in Northern Vermont for about three years at the time, and it had become clear that the farms in my area were struggling to reach markets outside the state. After the local wholesale market was maxed out, our farm considered major supermarket chains to be the best option for increased sales, and the demands of those large supermarket chains were not well-suited to the structure and diversity of our vegetable farm. Although I had been living in Vermont, I am originally from Brooklyn, and had spent some time working in the food industry in New York. I had friends in the city who I knew were looking for a better way to source food grown in our region, and who could afford to pay reasonable prices for that food. After a few years of seeing the disconnect between Vermont farms and high-end urban wholesale customers, I decided to start a business that might connect the supply in Vermont with the demand in the city.

Who are your main customers?

AM: Our produce goes to retail stores and restaurants throughout NYC and the Boston area. Our largest customers are a food co-op, an online retailer, and a fast casual restaurant chain, all in NYC.

Myers Produce NYC deliveryHow many truckloads of regionally-produced food do you deliver to New York City & Boston each year?

AM: We deliver in NYC four times per week throughout the summer and three times per week throughout the year. We deliver to the Boston area five times per week through the summer and twice per week throughout the year. All told this is about 330 truck loads per year!

How has Myers Produce changed over the years since you started?

AM: When we started, the business consisted of me, a van, and a computer, and I was delivering exclusively to NYC customers once a week. We have grown a lot since then! We are now a team of ten employees operating four box trucks. Our mission has remained the same since the beginning – we work to increase Northeast farmers’ access to regional urban wholesale customers, in order to support the strength of agriculture and the regional food system in the Northeast.

How does the seasonality of our Northeast agriculture impact your business?

AM: We have a much less diverse list in the winter than we do in the summertime. We don’t source any products from outside the region, so as soon as a product goes out of season in the Northeast, it is no longer offered on our list. That said, many of our farmers do an amazing job of season extension, and our winter offerings are probably more diverse than you might expect! We have greenhouse-grown spinach, tomatoes, and cherry tomatoes year-round, and we generally have kale, fennel and leeks well into January. And we have added value goods made with locally-grown produce available as well, like products from Real Pickles!

In a relatively short period of time, you have built up a great reputation as a regional distributor. What are the integral aspects to your success?

AM: We don’t know the answer to this entirely, but I think we have prioritized efficient systems, clear communication, and good customer service from the very beginning. I know these things mean a lot to our farmers and producers, and to our urban customers.

Myers ProduceWith all the farms and food producers in Vermont and the Pioneer Valley, how do you choose your offerings?

AM: We don’t have an exact formula, but we try to keep our list diverse and to offer a consistent high quality. We try to source the products that we consider to match growers’ strengths, while also balancing location, price point, seasonality, and scale.

What do we need to be thinking about as consumers and shoppers, in terms of building a strong regional food system?

AM: I know that all of our customers are constantly competing with huge corporate sources of food (Amazon/Whole Foods in particular), and that they are challenged to differentiate themselves in the eyes of consumers. I think the most important thing is for shoppers to be intentional about where they spend their money, and think about who they are supporting by where they buy their food. If we want to support local growers in the Northeast, we need to make sure to spend money where it will stay in regional circulation.

What is the most interesting behind-the-scenes aspect of Myers?

AM: We really only have one physical warehouse space. But, to cover the distances we cover while adhering to regulations – and also create jobs that we think are sustainable – we have drivers based in NYC, Western MA, and VT. All of these drivers start and end their days in the same locations, but they drive from VT to Western MA and back, from Western MA to NJ and back, from Western MA to VT and back, and from Western MA to Boston and back.

What has been your favorite aspect of your job over the years?

AM: I have always loved puzzles, and I’ve grown to enjoy creating systems that are physical, flexible, efficient, and full of moving parts. I love it when an opportunity or inquiry comes up on a given morning, and I get to think about how that opportunity fits into our current operation, send a few emails, make a few phone calls, and be able to take advantage of that opportunity (often by the next day) in a way that makes sense for all parties involved. It keeps me on my toes, and it helps me feel that Myers Produce is providing a real service that can adapt to the needs of the folks that we are trying to serve.

Annie Myers

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Creating Social Change, Together

The extraordinary political events taking place in our country are affecting us deeply here at Real Pickles Co-operative, as they are for so many others. They highlight how far we have to go to build the just, democratic, and sustainable society we wish to see.  We are reminded why all of us here take Real Pickles’ social mission so seriously, and why we must continue to work as hard as we can in pursuit of it.  It is also now as clear as ever that we cannot do this work alone.

One essential lesson of the 2016 presidential election – among many others – seems to be that our economic system is truly not working for many millions of Americans, and that this fact cannot be ignored. The Dow Jones may be up, the economy may be growing, corporate profits and the 1% may be doing great. But many are being left behind. Real change is needed, and the big question is what kind of change will we work toward?

At Real Pickles, we are committed to creating positive social change based on an inclusive vision that prioritizes equality, justice, health, democracy, and sustainability.  We are seeking to build a system that offers real opportunity to all people to live healthy and fulfilling lives.  This means moving away from corporate capitalism and toward an economy where small, community-oriented businesses are the norm.  It means making hatred and discrimination things of the past.  And – urgently – it means doing whatever we can to avoid disastrous climate change.

Thankfully, we are far from alone in these efforts.  A strong example is the New Economy Coalition (of which we are a proud member), whose vision is “a new economy…that meets human needs, enhances the quality of life, and allows us to live in balance with nature…a future where capital (wealth and the means of creating it) is a tool of the people, not the other way around.”  As a diverse array of 175 member organizations, each is pursuing these goals in its own ways, and also coming together wherever and however possible to build on each other’s efforts.  So much essential work is happening within this network, and we are grateful for the opportunities we’ve had to collaborate with such members as Equity Trust, Co-op Power, Cooperative Fund of New England, Cutting Edge Capital, Tellus Institute, Slow Money, and Project Equity.

Our work of creating a more sustainable food system is supported by many thriving organizations.  Community Involved in Sustaining Agriculture (CISA), for example, has been paving the way for countless food and farm businesses here in western Massachusetts to reach success as a result of their highly effective marketing of the “buy local” concept.  The Northeast Sustainable Agriculture Working Group (NESAWG), a 12-state network of over 500 organizations, is leading the way in building a vibrant regional food system.  The Northeast Organic Farming Association and Maine Organic Farmers and Gardeners Association are each in their fifth decade as influential developers of the organic agriculture movement.

We are also encouraged to be seeing the rise of the co-operative movement which is building a valuable alternative to the traditional corporate model.  Worker co-operatives are sprouting up here in western Massachusetts (and elsewhere), with the Valley Alliance of Worker Cooperatives providing a forum for area worker co-ops to collaborate as well as offering assistance to start-ups.  Around the Northeast, we are seeing more and more consumer food co-ops both getting started and expanding, with support from the Neighboring Food Co-op Association – a regional network of food co-ops representing combined memberships of over 107,000 and annual revenue of $240 million.

While the primary focus of Real Pickles’ work is the Northeast U.S., we recognize the importance of maintaining a national and global perspective, as well.  We admire and support the grassroots climate activism of 350.org, and have participated in climate marches in NYC and Washington DC.  The National Co-op Business Association, a national trade group of co-ops, is doing important work developing and advancing co-operative enterprise both in the U.S. and internationally. The Cornucopia Institute is providing the public with essential reporting highlighting both the problems of industrial agriculture and beneficial practices of family-scale organic farmers.  Over the past year, thousands have been camped out on the front lines protesting plans to build the Dakota Access Pipeline near the Standing Rock Sioux reservation (we recently made an exception to our Northeast-only distribution commitment to send a donation of fermented vegetables to the protesters).

Addie Rose at 2013 Climate Rally in DC

We’re deeply fortunate to be working with so many effective partners who share our commitment to a just, democratic, and sustainable society.  At the same time, we know that our approach to creating social change, as well as the scope of our own network, represents merely a narrow slice of what is happening and what must happen if we are to truly achieve our vision.  In the months and years ahead, we commit to redoubling our efforts to create real and positive change by building on the work we’re already doing and by seeking out new connections and partnerships across our region, nationally and globally.  We hope you will join us.

 

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The Scoop on our New Turmeric Kraut!

This guest post is written by our friend Brittany Wood Nickerson, a well-respected herbalist and health educator with a background in Western, Ayurvedic and Chinese herbal medicine. Her treatment and teaching approach emphasize personal empowerment, preventative home healthcare and whole body wellness. Brittany is the founder and primary instructor at Thyme Herbal in Western Massachusetts, where she teaches a three year Herbal Apprenticeship Program. She teaches women’s health at the University of Massachusetts and is the organizer of the Northampton/Amherst Herbal Meet-up group. Brittany is the author of The Everyday Living Series, The Herbal Homestead Journal and her newest work: Recipes From the Herbalist’s Kitchen, to be published by Storey in Spring 2017!  

I first met my fiancé, Casey Steinberg, when buying salad greens at his Old Friends Farm stand at the Amherst Farmer’s Market.  He was handsome, and his greens were really good!  In the fall they had bountiful baskets of fresh ginger and turmeric – I had never seen anything like it!  Casey and his business partner, Missy Bahret, pioneered growing ginger in northern climates in 2004.  A few years later they began growing turmeric and now, almost a decade later, this practice has caught on.  Today, Old Friends Farm gets regular inquiries about growing ginger from farmers in locations ranging from California to Vermont, and Costa Rica to Germany.

It is important to include medicinal herbs in our efforts to forge a vibrant local and regional food system.  Culinary traditions are based on ancient wisdom.  Cooking with herbs and spices makes food easier to digest and kills bacteria associated with food borne illnesses.  You might put basil on your pasta or cumin in your curry because it tastes good, but these practices have been passed on by generations of cooks who seasoned food with herbs because it was practical, necessary and healthful.

The caraway seeds found in many traditional sauerkraut recipes are a perfect example.  Cabbage can cause gas and bloating, but caraway seeds make the cabbage easier to digest and help reduce gas.  Traditional spices, such as the black pepper and dill in pickles, help warm and balance the cold energy of cucumbers.  Once you understand these principles you start to see them everywhere and you can make up your own traditions.  Excellent examples from the Real Pickles’ collection include: Red Cabbage with thyme, winter savory and marjoram; Beets with rosemary and onion; Ginger Carrots; and their new, absolutely fabulous Turmeric Kraut!

Turmeric root freshly harvested

Turmeric is a powerful medicinal herb, traditionally used in cooking and medicinal preparations.  It is a mildly warming, aromatic, bitter digestive aid.  It stimulates liver function and the release of bile, which helps with the digestion of fats and oils.  It improves the breakdown and absorption of nutrients and relieves gas and bloating.  Turmeric supports digestive metabolism, liver metabolism, and cellular metabolism, which aids in detoxification and helps to relieve inflammation.

Holistic health sees the health of each part of a system being integrally connected to the health of the whole.  In the body, holistic health starts with good digestion.  If digestion is compromised, all other systems become compromised.  A well functioning digestive system allows us to absorb the most nutrients from our food and to expel waste effectively.  Our digestive system is also closely tied to the nervous system.  The enteric nervous system, which governs digestion, has almost as many neurons as the brain!  It connects the digestive system to all other systems in the body.  Aromatic culinary herbs help relax the GI tract and calm the nervous system, while at the same time relieving many digestive upsets.

Real Pickles Organic Turmeric Kraut
Real Pickles Organic Turmeric Kraut

Fermentation, like cooking with culinary herbs, makes food easier to digest. Fermented vegetables also contain beneficial bacteria, which have been shown to improve skin health, decrease allergies, and increase immunity (see Real Pickles’ health page for more info).  Lactic acid, produced during the fermentation process, makes fermented foods taste sour – hence the name sauerkraut.  As if everything we have learned so far isn’t enough, the sour flavor is also great for digestion!  Sour tasting foods stimulate the secretion of acids and enzymes, as well as bile from the liver and gall bladder.  The probiotics and sour flavor of kraut combined with the bitter, aromatic and mildly warming energy of turmeric are a perfect recipe for holistic wellness.  The benefits complement one another, improve digestion and help to support whole system balance.

As organisms in a larger system, our holistic wellness is dependent on many interconnected systems: environmental, economic, social and cultural.  Efforts to restore local and regional food systems and economies understand this kind of holism, recognizing that our food is only as healthy as the system from which it comes.  Real Pickles’ commitment to producing healthy food and creating a sound regional food system is a role model for the planet.  We need more businesses willing to think outside the box and be structurally creative – committing to policies that support workers, distributors, retailers, consumers and the environment in ways that foster health on all levels.

Years after we met, I was teaching Casey how to make sauerkraut in our home kitchen, and he said, “let’s add turmeric!”  It was harvest season, and we had fresh turmeric coming out our ears!  We were very excited to share our first batch with Real Pickles.  Cabbage and turmeric have not traditionally been grown in the same climate, which is part of what makes this product so special and unique.  Real Pickles and Old Friends Farm have created a special partnership which builds on each other’s innovations and shared mission to work toward a thriving local and regional food system.  This is health as it should be – interconnected, responsible and delicious.

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One Year as a Co-op

We just wrapped up our fiscal year at Real Pickles. In many ways, it was a typical year for the business. Interest in fermented foods has continued to rise, and the year was another strong one for us. As is often the case, the uncertainties of the growing season necessitated some creative problem solving (a wet spring in the Pioneer Valley resulted in much less early cabbage than we were expecting) but in the end we got all of the fresh ingredients we were hoping for and processed over 300,000 pounds of Northeast-grown vegetables during our production season, an increase of about 40% over last year!

What was different about this past year, however, was our structure as a business. May 9th marks the day that Real Pickles made the transition from a sole proprietorship to co-operative ownership. It took a lot of work to become a co-op, and now the process of running the business involves both shared effort and reward for our new group of member-owners. Some of what we encountered during our first year was expected and other things took us a little more by surprise. As an increasing number of businesses consider transitioning to the co-operative model, we want to share some of our experiences so far.

Learning to be Business Owners

The founding worker-owners on May 9th, 2013 getting ready to
sign the legal documents to convert Real Pickles to a co-operative.
(Photo credit: David J. Singer, Esq.)

As Real Pickles made the structural shift to becoming a co-op owned by its employees, those of us who hadn’t previously been owners knew we would have to make the mental shift to thinking like owners. Looking back a couple years, as the founding co-op group worked together to figure out if Real Pickles’ transition to a worker co-op made sense for the business and for each of us as individual potential owners, we spent quite a bit of time on activities that served the joint purpose of strategic planning and practicing the art of ownership. Inspired by our friends at South Mountain Company, we prepared an exercise that encouraged us to articulate what kind of growth we want for Real Pickles, and the possible outcomes of different approaches for our future. Since completing the transition, we’ve continued this important strategic planning work.

To further foster a learning culture in our business, we started holding internal classes on five core topics – Social Mission, History of Real Pickles, the Co-operative Movement, Finances and Governance. While all staff people attend, all potential worker-owners are required to complete these classes before becoming part of the co-op. This has given us all a common base of understanding of Real Pickles as a co-operative business and some of the tools we need to be effective business owners.

The need to think like owners was highlighted when, recently, we were looking at increasing certain benefits for staff – in this case, starting a Real Pickles sponsored retirement account, increasing our paid time off and implementing a family leave policy. While we as employees were, in principle, supportive of enhancing benefits for ourselves and our co-workers, as owners we also had to take responsibility for the impacts of these decisions on the business that provides us with employment. When we looked at the costs within our budget for next year, we ended up proceeding more cautiously, scaling back the new benefits for the upcoming year with the understanding that we will revisit this topic after we have another year as a co-op under our belts and can envision what long term sustainability looks like.

Another example of new owners having to broaden their perspectives came recently when it was time for Dan’s first annual review as General Manager. A small group of board members was formed to conduct the review process. This process of evaluating our General Manager — who is also the founder, hired many of us and who many of us report to directly — exemplifies how the workers have had to step up and manage multiple roles with this new co-operative. In the end, the review went extremely well. It was a powerful experience for all involved and a clear example of what makes a co-op different from other business models.

Charting Our Future

Last May, as we looked forward, we knew that if the co-op was to be successful over time we would have to make worker-ownership appealing to more staff people. We expected that other employees would see the value of being worker-owners but didn’t expect it to happen so quickly.  Even before we officially made the transition to a co-op, two more staff people expressed their interest. In the midst of working on our business strategy, investment campaign, incorporation and legal documents, we had to scramble to articulate the “path to worker-ownership” at Real Pickles, with an eye to finding the balance between making the ownership process clear and accessible to workers while maintaining a high level of training and engagement for potential new members.

We have also been careful to create clear distinctions between the responsibilities of the worker-owners, the board and staff. We wrote our bylaws with an eye to these issues but, taking a cue from fellow worker co-op Equal Exchange, we later also created a governance matrix that both lays out responsibilities from our bylaws (such as only a consensus of all worker-owners can amend Real Pickles’ mission) and clearly communicates what body is accountable for other areas of the business (for example, the General Manager creates the annual budget to be ratified by the Board of Directors). This clarity of responsibilities has served us well so far and the clear delineation of authority and oversight has helped us to work efficiently.

For Brendan Flannelly-King, Real Pickles’ facility manager and one of the five founding members, much of the work setting up the co-op felt abstract and it was often difficult to imagine what it would be like to be an owner. “In some ways,” he says, “owning the business has been easier than I had expected. It’s hard work, but since the worker-owners as a body aren’t involved in operations, we have been able to really focus on strategy.” As we look to our second year, we’re working to anticipate the systems that will help us to be even better business owners, and will help make future decisions as clear and simple as possible.

Real Pickles & Our Community

Real Pickles as a sole proprietorship has long had a strong network of support within the community and we knew we would need to engage that network in a variety of ways as we made the transition to a cooperative. One thing we did was to gather a group of community members as a Board of Advisors to help us look at strategic planning, particularly the issue of how to grow our business in a way that is thoughtful and sustainable. This topic has provided fodder for energetic meetings with lots of debate about competition, mechanization, growth and sustainability. We as worker-owners have been inspired and motivated by these discussions.

We have also found that the outreach work we did throughout the months leading up to our co-op transition has continued to benefit us. Real Pickles’ local following has grown and become even more dedicated – we sold over 7000 more jars in the Pioneer Valley in 2013 than we did in 2012! It is encouraging that worker cooperation appears to have value not only for our own employees but also for customers who can see its benefits for the wider community.

Central to our vision as a sustainable, mission-based co-operative is further engaging our community — the growers who supply us, the farm stands, food co-ops, natural food stores and other businesses that carry our products, the people who purchase them, the investors who helped finance our transition, and the co-ops that have supported us along the way — as we chart the future success of our business. Thanks to the many people who have supported us in this exciting first year of what we hope will be a long and inspiring journey. A co-op is a community effort, and we could not have done it without you!

The current Real Pickles worker-owners (from l to r): Kristin Howard,
Dan Rosenberg, Andy Van Assche, Rebecca Lay, Brendan Flannelly-King,
Annie Winkler, Addie Rose Holland. (Photo credit: Heather Wernimont)

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Why 8 hours of pickle tasting rocked my world…

Some of the delicious pickle entries for GFA 2014

Last weekend, Dan and I participated in the fourth annual Good Food Awards‘ judging event – in the pickle category.  We were psyched for this!  Not only did we get to travel to San Francisco and taste LOTS of incredible pickles – we also got to meet new pickle people and connect with pickle friends we’ve made at previous GFA events.  It was a fantastic experience.

The event was much larger than we expected, almost as big as the GFA ceremony itself.  For each of the 10 categories (pickles, preserves, cheese, beer, chocolate, coffee, spirits, confections, oils, charcuterie) there were 20 or so judges ready to taste the nearly 1,500 total GFA entries for 2014, including ~120 pickle entries.  In the morning, the pickle judges split into small groups focused on regions (I was South; Dan was West), and each group selected 10 pickles to recommend to the larger group based on flavor, balance, texture, and appearance, among other criteria.  After lunch, the pickle judges tasted the 50 pickles selected in the morning and gave them numerical scores.  We won’t know until the awards ceremony which pickles won, but I have my guesses…

Dan’s group took pickle tasting very seriously

I loved tasting SO many different kinds of pickles – vinegar, fermented, krauts, fruit, onions, beets, and relishes.  The fermented black bean and garlic paste was a highlight for me – its spicy kick was significant and enduring!  I also loved the turmeric-yellow kraut packed with ginger, yum.  Dan’s day was made by the vinegar pickled sea beans (the what?) – an aquatic plant neither of us had heard of, harvested from salt marshes.  And those pickled cherries – nicely flavored with a little cinnamon and clove – came in handy immediately following the jar of cucumber pickles full of halved habanero peppers.

Chilly Dilly

Among the judges were experienced pickle-tasters, pickle-writers, and pickle-makers, and it was fun to talk details of sugar-sour balance, degree of fermentation, slicing techniques, and vegetable texture.  The selection of entries were beautifully displayed – it was lovely to see the variety of veggies, colors, textures, and jars.

The pickle category was expertly coordinated by Chris Forbes from Sour Puss Pickles in Brooklyn, NY and Todd Champagne from Happy Girl Kitchen Co in Monterey, CA.   While Chris masterminded the organization of all those pickles, Todd kept up our spirits by making an appearance as “Chilly Dilly”, a cucurbit that is “…kind of a Big Dill”.  They kept us in pickles all day long, PLUS a parade of palate cleansers to keep our taste buds primed – the highlights included some very special GFA entries from the chocolate and cheese categories once their judges were done tasting from them.  Oh, and some nice selections left over from the spirits and beer categories, too.

Fermentation crocks from Counter Culture Pottery

It was a wonderful place to meet and re-connect with a variety of pickle folks.  It put us in a reminiscent mood, too.  When we started Real Pickles in 2001, there were only a handful of businesses around the country making fermented pickles and sauerkraut.  Now there are companies sprouting up all over the place!!  Dan and I really appreciate meeting new companies who are perfecting the art of the pickle, and to talk techniques, recipes, and business models. We had a great time connecting with Mara from Zuké and learning about her new-ish pickle business in Boulder, CO.  We also got to meet Jennifer Harris who organizes Sonoma County’s wildly popular Farm to Fermentation Festival, and Sarah Kersten of Counter Culture Pottery, who makes elegant fermentation crocks.

Dan and Linda Z.

When Real Pickles was getting its start, there were also only a handful of books about fermented pickles, or role models in the world of fermentation (think: pre-Sandor Katz’s Wild Fermentation!).  Two of those early authors were Sally Fallon (Nourishing Traditions) and Linda Ziedrich (Joy of Pickling).  We count ourselves very lucky that, this past weekend, we were able to meet and judge pickles alongside one of our early inspirations and teachers, Linda Ziedrich.

When Real Pickles was getting its start (is there an echo in here?), fermented vegetables were a food of the past, a fringe-hippie-food, only found in backwoods natural foods stores and in the pantries of homesteaders.  A mere dozen years later, it is at the height of food-trendiness, the focus of many festivals (see this, this, and this), and the mark of the hippest hipster (any hipster worth his or her hand-harvested unrefined sea salt, anyway).

The timing of this trend is uncanny (pun intended), as this food revival is gaining recognition from the science community, as well.  In just the last few years, scientists have been recognizing the amazing benefits of fermented foods to our overall health – benefits that our ancestors enjoyed and came to depend on for thousands of years, but that we have unwittingly excluded in our transition to more processed and industrialized foods.  In his newest book, Cooked, Michael Pollan enumerates dozens of recent scientific articles relating the importance of beneficial bacteria in protecting our intestinal health, promoting our immune defense, and maintaining our mental well-being.  Scientists are also recognizing that our recent deficiency in fermented foods teeming with live cultures may be part of the reason for some of our generation’s most serious health problems, such as allergies, obesity, seasonal colds and flus, and some cancers.  Pickle, anyone?

But back to the Good Food Awards… needless to say, there was plenty of enthusiasm among the pickle judges and aficionados we spent the weekend with. One of the best things about the Good Food Awards is that it is not just a contest, where your product is pitted against those of your peers and competitors.  So much of it is about connecting food producers, inspiring conversation, trading ideas and methods, and giving each other a pat on the back.  Being a food producer can be isolating, especially when regionally-focused, so it can be SO inspiring to talk to other people with similar experiences.  Really, in the world of fermented pickling, we are not competitors.  The more producers there are, the more we are recognized as a legitimate food category.  Participating in the Good Food Awards has given us a real sense for our larger community of fermenters and fellow picklers, and we are so happy to be a part of it!

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Real Pickles and the Path to a Co-operative Economy

We are excited to share a few words written by Erbin Crowell, Executive Director of the Neighboring Food Co-op Association (NFCA) and local expert on cooperative business.  Erbin was a huge help to the Real Pickles Co-op founding group as we forged ahead with our transition to a cooperative structure.  He earned his Master of Management: Co-op & Credit Unions from St. Mary’s University in Nova Scotia and serves on the boards of the National Co-operative Business Association and the New England Farmers Union. He lives in Buckland, MA, with his partner Kristin Howard and their son Elias, and may be contacted at erbin@nfca.coop.

By Erbin Crowell, Executive Director, Neighboring Food Co-op Association

The United Nations International Year of Cooperatives was celebrated in 2012

 

It’s been about five years since I first sat down with Real Pickles’ cofounder Dan Rosenberg at his home in Montague, MA.  As he considered the future of his company, Dan was interested in knowing more about the co-operative business model and its potential for preserving Real Pickles’ unique mission over time.  For my part, I wanted to better understand the perspectives of entrepreneurs like Dan who were uncomfortable with the traditional paths of business succession.  Could co-ops offer a viable alternative for business owners who see success as defined more broadly than just the bottom line?

My partner Kristin Howard – now Real Pickles’ sales manager and a founding worker-owner – and I had recently left Equal Exchange, a worker co-op and pioneer in fairly traded products, where we had been member-owners for a combined two decades.  My experience developing new initiatives within a rapidly growing co-op had been profound on a personal level.  It had also demonstrated to me how co-ops could have a dramatic impact on the economy by working together across the food system.  I wanted to be part of making the experience available to more people, and growing the wider co-operative economy.  This path had led me to studies in co-operative management and work with organizations including the Co-operative Fund of New England, the Valley Alliance of Worker Co-ops, and finally the Neighboring Food Co-op Association.

A basic challenge for the co-operative movement is that it has been largely overlooked by universities, economic development organizations, and local governments. It is easy to go through one’s academic career without learning anything about this business model, despite the global impact of co-ops. When young entrepreneurs seek out support for starting or growing a business, the co-operative model is rarely offered as an option.  Basic legal and financial support is weak at best.

And yet, co-operatives have succeeded.  For example, more than a billion people around the world are co-op members — more than directly own stock in publicly traded corporations.  Co-ops also employ more people than multinationals.  And in the quest for food security, co-operatives have been recognized as lifeline for small farmers and consumers in the developing world.

In recent years, co-ops have been recognized for their performance during the global recession that began in 2008 and continues to cause massive unemployment, dramatic shifts in wealth and austerity.  Co-ops have proven extraordinarily resilient during this period, preserving jobs, wealth and community infrastructure. And their global contribution to human development, poverty reduction and sustainability led the United Nations to declare 2012 the International Year of Co-ops.

In addition to being driven by a distinct set of values and principles, the co-operative legal structure prioritizes social needs and goals above the accumulation of profit.  Based on the principle of one member, one vote, co-ops are very real examples of the kind of economic democracy that people are clamoring for in the wake of this global recession.

Food co-ops in our region are an illustration of the potential of this model.  For the past three years, I have served as executive director of the Neighboring Food Co-op Association (NFCA), a network of over 35 food co-ops and start-ups across New England.  These are community businesses, locally owned by more than 80,000 people.  Success is not measured by investor dividends, but by factors such as environmental impact, benefits to members, and employment. Because they are not focused on maximization of profit, co-ops have been innovators in the food system and pioneers in healthy foods, organic products and Fair Trade.

Food co-ops have also been leaders in the re-localization of economies, illustrated by the fact that the members of the NFCA purchase over $30 million in local products each year.  In communities across our region, food co-ops serve as anchors for local producers and as places to experiment with new products.

However, a central challenge for food co-ops, and for the “buy local” movement in general, is that the purchasing power we invest in the local economy does not always stay in the community.  For example, our members and customers have invested millions of their consumer dollars in socially responsible businesses, only to see them bought out by large multinational corporations.  In this sense, local economies often serve as a testing ground for the investor-driven economy. Entrepreneurs create new products and services and those businesses that demonstrate sufficient potential to generate profits for investors are absorbed into this market economy through investor buy-outs, initial public offerings (IPOs) or purchase by a larger corporation.  As a result, the capital, creativity and infrastructure created by local entrepreneurs are extracted from local communities, and the stakeholders who helped create that market value are left behind.

Another challenge for the local movement is business succession.  What happens when an entrepreneur decides to retire or simply move on to something new?  As we invest our consumer dollars in local businesses, are there ways to ensure that those businesses don’t fade away or get sold to corporate interests?  Is there a way to engage other stakeholders — workers, producers, consumers and the wider community — in the mission and long-term success of local enterprises so that they are more sustainable and accountable to the people who depend on them?

This question has been at the root of the co-operative movement since its beginnings.  In response to the concentration of wealth and control that characterized the Industrial Revolution, community activists created a democratic business model, rooted in social values, and oriented toward the meeting of human needs rather than accumulation of profit.  For the first food co-ops, the goal was food security and rooting a source of healthy, affordable food in the community.  For farmers, it was pooling resources to invest in the shared infrastructure needed to compete with larger growers and corporations.  And for workers, it was gaining more control over our work-lives so that a company couldn’t just up and leave in search of higher profits.

Certainly, these goals speak to many entrepreneurs today for whom the ideals of economic democracy, sustainability and human fulfillment are integral to their vision of success.  What has been missing is a roadmap for succession that provides an alternative to the traditional corporate buyout.  Real Pickles founders, Dan and Addie Rose, may have part of the answer.  Five years after we sat down to talk co-ops, their company is on the cutting edge of a trend toward a new way of thinking about the basic purpose and priorities of local business.  For an emerging group of entrepreneurs, conversion to a co-operative structure may be driven by the desire to root their business in the community, to safeguard their mission, or simply to share ownership, risk and reward with their co-workers.  For others, “co-operation” was always what they had in mind – they just needed a formal business structure for it.

This is not to say that there is not an important role for outside investors in this effort.  What is needed is a new way of thinking about this role.  Some have used the term “social investor,” and “slow” or “patient” capital.  Tom Webb, former manager of the Master of Management, Co-operatives and Credit Unions Program at Saint Mary’s University in Halifax, Canada, has called for something a little more specific: “co-operative capital.”  For Webb, the financial crisis of 2008 and the accompanying global recession has demonstrated the problems of an economic system built on maximization of profit.  “We need capital that is socially constructive rather than destructive and more stabilizing rather than destabilizing,” he writes.  “We need capital that is restrained, limited and controlled and directed to meeting human need rather than human greed.”

In fact, some of the most successful contemporary co-ops have relied on this kind of capital to grow their businesses.  Equal Exchange and Organic Valley, for example, offer investment opportunities for non-member individuals and organizations.  This capital is constructive in that it is driven by social and environmental impacts as opposed to maximization of return; it is restrained because investment shares are non-voting, with control remaining with the membership; and it is stabilizing in that share value is based on cash value rather than the theoretical market valuation employed by the stock market and employee stock ownership plans (ESOPs), rooting wealth in the community.  Over time, many have insisted that investors would not accept these limitations on their influence and returns.  And yet, year after year these co-ops have had little trouble attracting sufficient capital to support their growth.

What is particularly exciting about Real Pickles is that they have demonstrated a model in which people can invest in the conversion of a privately held business into a co-operative enterprise.  Essentially, investors are using their financial resources to secure a business within the local co-operative economy, as opposed to the market economy.  This represents a compelling shift in our conception of what is possible.

Over the years, food co-ops across the Northeast have invested substantial purchasing power in the success of local businesses like Real Pickles.  And I am proud that the Neighboring Food Co-op Association has been able to play a small part in the transition of the company, becoming an investor in Real Pickles as part of our vision of “a more healthy, just and sustainable food system, and a vibrant community of co-operative enterprise.”

On a personal level, it has been inspiring to work with the member-owners of this new co-op in this process.  In my role as the first staff person for the Valley Alliance of Worker Co-ops, I began to see the importance of co-op led development and the potential of peer-to-peer collaboration in supporting the success of co-operative enterprises.  While my primary work is now with the NFCA, there is a clear overlap in the vision of our food co-ops and that of companies like Real Pickles.  Moving forward, my hope is that co-ops and local entrepreneurs will be able to see the potential in this kind of collaboration in growing the co-operative movement in our region.

Dan Rosenberg and Addie Rose Holland have not only chosen an inspiring path for Real Pickles.  They, along with the other founding member-owners of the Real Pickles Co-op, have laid a path for local business succession and the transformation of individual entrepreneurship into what would be more accurately described as co-opreneurship: creative economic development with the goal of strengthening economic democracy, sustainability, and community wealth.

Fermenting Since 2001