The Yahara River Grocery Cooperative's (YRGC) effort to raise $30,000 in 30 days - and help the fledgling co-op gain a new lease on life - was successful.
Friday, Feb. 13 co-op officials learned the Dane County Revolving Loan Fund (RLF) Committee recommended giving a $60,000 loan to the co-op. This amount was matched by $32,525 in cash contributions raised in the last 30 days by the co-op's members and customers.
In the spirit of cooperatives supporting each other, the Cooperative Network, a group of 600 cooperatives across Wisconsin and Minnesota, raised $5,000 of the $32,525.
"This is an unbelievable show of community support. The Stoughton community, the cooperative community and the Dane County community have all played a part in supporting the success of our cooperative," said Norma Sampson, president of YRGC's board of directors. "The RLF loan and the matching funds are vital to keeping the co-op doors open. We will use the $92,525 to revitalize the store and provide services and products that our members have been requesting."
The $60,000 loan and $32,525 matching funds will help YRGC improve and add inventory, reduce its debt, grow its customer base, hire a general manager and become profitable. she said. Besides the $32,525 pledged by members and customers, YRGC raised $3,080 through fundraising events this past month for a total of $35,605.
In January, the RLF Committee postponed its decision for 30 days to allow YRGC to raise $30,000 to qualify for the $60,000 loan. "RLF's low-interest loans are especially designed for this type of application," says Dennis O'Loughlin, chair of the RLF Committee. "The spirit of support in the community clearly indicated that this was the right thing to do."
"We are thrilled to have another chance to be the Co-op that our community expects us to be - a reliable source for local, natural and traditional food favorites for Stoughton and neighboring communities," says Wynston Estis, YRGC's interim general manager.
YRGC will use the loan to grow the community that relies on it as a grocery source. Strategies include an infusion of high quality inventory at competitive prices such as a fresh meat department that the membership has strongly requested. Also, YRGC plans to expand its deli offerings with a salad bar while growing its spectrum of promoted goods to feature dairy, meat, cheese, bulk goods and more options in the produce aisle.
"We renegotiated our pricing and improved the quality of goods," says Estis, "but we ran out of cash resources. Because of our sales limitations, we've been struggling to put product on the shelf. With the pledge monies from the community and the loan from Dane County we will be able to stock the store properly and have monies in reserve to continue to add products that our customers desire."
The co-op is already planning a grand re-opening celebration March 20 to 22.
Sampson credited Estis, whose salary Madison's Willy Street Co-op is paying, with turning around the fortunes of the cooperative. "Wynston was instrumental in lower prices and creating a more competitive pricing strategy for the Co-op," says Sampson. "She's created a product mix that blends natural and traditional products, and our members are reporting that our grocery offerings have improved."
The cooperative has been interviewing candidates for the permanent general manager position and expects to make an offer soon. Estis will stay for a 6-week transition period and then return to her managerial duties at Willy Street Co-op.
