A stronger national co-operative

Martin writes: Most people imagine that the Co-op is one organisation. In fact there are dozens of regional co-ops, some with just a single store, and in the past there were hundreds. In South London we have just one co-operative retailer, the Co-operative Group, which operates in almost every part of the country. But up until the 1980s there were two strong local societies covering our area, the Royal Arsenal and the South Suburban.

Some of the remaining regional societies cover quite large areas. And in the last couple of weeks, one of those - the Plymouth & South West Society - announced it was to recommend to its members that they merge with the Co-op Group.

Does that affect us? Well yes, in part. Having many co-ops with different brands confused shoppers, harmed us over the last 50 years. Some of these societies lost any real local identity, and ended up competing with each other. Plymouth is a strong society, committed to its area. But it had already recognised that ensuring that its shops looked like the main co-op brand would help it and would help the co-op cause. And now it sees benefits for its members, its customers and its staff through full merger.

But at the same time, Ursula Lidbetter, chief exec of the fiercely independent Lincolnshire Co-op, made clear to the Co-op News that her members are best served by staying separate. What we need is both diversity, and a sense of our common direction. Co-ops need to work together, to co-operate in fact. And we have to rise to the challenge of remaining true to our principles.

Because that's what these choices are really about, and something we as Area Committee members need to promote. How do we ensure that local shoppers and members have a voice in large organisations? How do we make sure that those people running the shops are working to deliver for our members? How do we serve our local communities but gain all the benefits of being part of a large, powerful, national organisation?

Lincolnshire and Plymouth have chosen different ways of meeting the challenge of strengthening their democracy and their service. We look forward to hearing your ideas for doing the same in South London.

Earth Hour Anyone?

Timothy writes: The Co-operative is known as a leader in greening its business. You can find out what The Co-operative Group is doing on its environment pages.

As each store is refurbished, it gets greener with newer refrigeration that is less polluting.

The Co-operative Insurance Tower at Manchester is clad in PV cells (photo Voltaic) the panels that convert the sun rays into usable electricity.

The Co-operative Insurance Tower GREEN FACTS

• Generates total electricity for 61 average three-bed houses each year
• Generates enough electricity each year to light an average three-bed house for over 305 years
  
• Generates enough electricity to make 6.8 million pieces of toast/9.9 million cups of tea every year

Which brings me nicely on to 'Earth Hour' - will you be voting Earth? On March 28 you can VOTE EARTH by switching off your lights for one hour. Or you can vote global warming by leaving your lights on.

The results of the election are being presented at the Global Climate Change Conference in Copenhagen 2009. We want one billion votes for Earth, to tell world leaders that we have to take action against global warming.

Co-operation around the world

Timothy writes: I was delighted to see an excellent piece on the bbc news website today about the Co-operative Lijjat Papad in India.

It is celebrating its 50th anniversary today and is a typical example of a successful Co-operative.

Founded by women, it exploited a small amount of start up money and is now a flourishing business with a turnover of £72million a year.

Lijjat web site (in English)

The women exploited a key skill and took this to an impressive business, delivering stable finances for their families at the same time.

It makes you proud to be a supporter of Co-operatives.

Where The Co-operative leads, others follow

Timothy writes: in 2000 The Co-operative was the first supermarket group to introduce Fairtrade chocolate on own-brand chocolate. In 2002 it converted all of its own-brand chocolate to Fairtrade.

The Co-operative chocolate all comes from a co-operative of farmers in Ghana.

So, where the Co-operative leads, others follow! It has been announced by the famous chocolate company Cadbury that they are converting all of their Dairy Milk Chocolate supply from Autumn 2009.

Just like The Co-operative chocolate, Cadbury Dairy Milk will be sourced from Ghana too.

Bexley Council turns down Fairtrade

Martin writes: We're disappointed to learn that Bexley Council has turned down Fairtrade Borough status. This campaign has been led by community campaigners and is backed by the Co-operative Group and many other organisations. Getting Fairtrade Borough status means that consumers have a number of shops, cafés and other outlets to buy Fairtrade goods, and that offices and schools serve things like Fairtrade tea and coffee. A key plank of getting awarded the mark by the independent Fairtrade Foundation is having the Council agree a motion simply to show support, so that there's civic leadership, and to offer the choice of Fairtrade products in their own refreshments. Often it can save councils money, and it broadens the choice for consumers.

20 other London Boroughs, like neighbouring Greenwich, have gained the status, as has London as a whole. Croydon was the first Fairtrade borough - I was proud to be the councillor leading the process in Croydon gaining support in all parties. So Bexley would be in good company. Sadly when Councillor Sandra Bauer put forward the motion, the ruling group on the Council turned her down.

Some of the arguments used to justify were misinformed. It's rather sad that councillors use the excuse of economic hardship in this country to turn their backs on the effect our consumption has in other countries. The Co-operative Group will remain committed to Fairtrade. In fact, we continue to see consumers choose ever more Fairtrade in their trolleys - the Sun said last week that 18 million people now buy Fairtrade.

We now need our members to tell Bexley councillors that they should back Fairtrade and give farmers a fair deal. If you support Fairtrade, email the Leader of Bexley Council, Cllr Teresa O'Neill, and tell her so.

A new dawn for the Co-operative retail movement

Timothy writes: having been elected only a few days ago, it was a surprise to receive a letter from Peter Marks, the Chief Executive of the Co-operative Group confirming that the Somerfield deal had now fully completed. I then realised that it was being sent to me because of my recent election!

I have been really keen on this move for some time, and it is testament to the strategic vision of Peter Marks that has secured this deal. He first had a look at Somerfield in 2005 as CEO of United Co-operatives, when Somerfield was in a right old mess. Thankfully the new venture capitalist owners turned the company around, in the financial year ended April 2008, Somerfield generated sales of £4.2 billion and a profit (EBITDA) of £233 million.

The final price paid by The Co-operative Group is currently unclear because it has sold stores bought from Somerfield and has yet to sell some others. The final price will therefore be below the headline figure of £1.565 billion!

Although the Co-operative now own Somerfield it will take some time for all stores to be converted. Some are being sold - like the busy store on George Street, Central Croydon to Waitrose). Somerfield have produced a frequently asked questions list.


Below is the press release as issued via the Press Association:

The Co-operative Group has completed its £1.6 billion takeover of grocery chain Somerfield, a move cementing its position as the UK's fifth largest food retailer.

The tie-up has created a chain of around 3,000 outlets with a market share of 8% and annual sales exceeding £7 billion.

It also marks the closing chapter for Somerfield, which traces its history back to a small family grocery store more than 130 years ago.

Co-operative Group chief executive Peter Marks said: "It is a transformational deal which cements our position as the UK's number one community retailer and returns us to the premiership of food retailers. It is no longer the Big Four, it's the Big Five."

The Co-op is taking on more than 650 Somerfield stores, but has had to offload branches in areas where watchdogs had concerns over competition.

The integration process is expected to take up to two years, as Somerfield's stores are gradually converted to The Co-operative brand.

The UK's biggest mutual retailer will close Somerfield's Bristol headquarters in around 18 months, in a move affecting around 750 staff.

The Co-op hopes to be able to relocate "as many as possible" of Somerfield's employees to the merged head office in Manchester.

The scale benefits of integrating the two businesses will allow the group to provide better value to customers, Mr Marks said.

Somerfield chief executive Paul Mason said: "It's not been easy, but I really believe that the take private of Somerfield has allowed the business to be transformed in a way that just couldn't have happened in the public markets. I am thrilled to see the revitalised Somerfield going into such good hands."