Coopeconomy CO-OP ECONOMY / 2019 PAGE 2

A comprehensive report on the UK’s co-operative sector

#CoopEconomy CO-OP ECONOMY / 2019 PAGE 2

The Co-op Economy 2019

The Co-op Economy is the nation’s only comprehensive report on “With Brexit looming, more co-ops can the UK’s co‑operative sector. It reveals turnover, membership and help pave the way employee figures for thousands of co‑op businesses across the UK. for a sustainable and resilient economy. In an uncertain climate, The 2019 report lifts the lid on a sector which is yet to reach critical mass – despite it helps to pull strong arguments for a more co-operative economy. So many businesses behave together.” destructively, damaging the environment, avoiding taxes and putting shareholders Ed Mayo Co-operatives UK above any public interest. In contrast, co-ops operate in a balanced way, doing good, sharing profits and reinvesting in the communities they serve.

Co-ops are owned and controlled by their members. These members can be the customers, workers or suppliers. Co-ops exist to serve their members’ needs – to provide solutions. They are fairer because they share profits among their members, rather than rewarding external shareholders. They provide control because members have a say in how the business is run. And they are resilient, with new co-ops more likely to succeed than start-up companies. CO-OP ECONOMY / 2019 PAGE 3

Annual Ownership turnover 2019 2018 2017 2016 2015 £37.7 £37.3 £36.3 £36.3 £36.8 and control bn bn bn bn bn

There are 7,215 independent co-ops operating across the UK, a drop of 51 from 2018 levels. But fewer co-ops are doing 7,215 more business, with turnover at a record high of Independent £37.7 billion – up more than £400 million. co-ops in the UK

The modest decline in the number of co-ops can be attributed to fewer new starts, with awareness of the 233,733 co-operative business model remaining relatively low.

The UK’s co-ops are owned and controlled by employees 13.7 million members, of co-ops the equivalent to more than a fifth of the population. They also remain significant Number of co-op members employers, with 233,733 people earning their 2019 13.7 million livelihoods directly through co-ops. 2018 13.7 million 2017 12.9 million CO-OP ECONOMY / 2019 PAGE 4

Survival of Survival rates after 5 years the fairest 72%

Co-operatives are resilient. Almost three out of four co-op start-ups (72%) are still flourishing after the difficult first five years of existence. In stark contrast, more than half of all new companies (57%) have gone to the wall before 43% reaching that same milestone.

Co-ops operate in all sectors. Their resilience is not down Co-op Company to cherry-picking more favourable industries. Greater survival survival community-based ownership means more people are invested in the long-term success of co-ops. Co-ops are also underpinned by a common set of values and principles which set them apart from other businesses. Business survival rates

Year 1 Year 2 Year 3 Year 4 Year 5 Companies 91.3% 73.9% 59.4% 50.4% 43.2% Co-ops 95.6% 90.9% 86.7% 77.8% 72.1%

The calculation for company survival rates is based on figures from 2012-2017 CO-OP ECONOMY / 2019 PAGE 5

Across the UK

The vast majority of the UK’s co-ops are based in England and the UK’s most Northern populous nation provides 87% of total turnover, as well as 79% of newly created Scotland co-ops in 2019. The number of start-ups is in decline however, with 150 in 2019, Ireland £2.6bn turnover down from the previous year’s 191. £1.1bn turnover 578 co-ops 257 co-ops 1.1m members Co-op development in Scotland and Wales is boosted by government policy 779k members and funds. Both Scotland and Wales created more co-ops than England when correlated against business population.

Agriculture and finance remain the dominant sectors in Scotland, combining to provide almost 40% of co-ops. More than 50% of co-ops in Wales are in the Wales England membership associations, social clubs and trade unions sector. £1.1bn turnover £32.7bn turnover 478 co-ops 5,898 co-ops Credit unions remain the dominant force in Northern Ireland with over 61% of the 698k members 10.9m members nation’s co-ops in the finance sector. Farming also plays an important role with 15% of co-ops operating in agriculture. Channel Islands: £183.6m turnover, 4 co-ops, 128k members CO-OP ECONOMY / 2019 PAGE 6

Across sectors

Co-ops operate across all industries, from fishing to finance, transport to telecommunications. Retail remains a dominant force within the UK’s co-op economy. Driven by The Co-op and John Lewis Partnership and supported by a series of successful and innovative consumer-owned retailers, turnover has grown by almost £1 billion to £26.5 billion. In the last year, the other major financial player is the agricultural sector, with 434 co-ops producing an annual turnover of more than £7.9 billion.

Over a third of the UK’s co-ops are found in the membership associations, social clubs and trade unions sector. Just as the Rochdale Pioneers were driven by a need to provide affordable essentials 175 years ago, today’s associations and clubs are also created to fulfil local needs.

The co-op business model is built on the basic premise of serving member needs while adhering to a common set of values – making co-ops just as relevant and necessary today as they were in 1844. New co-ops are being created every week. Innovative tech platforms are being built to deliver fairer social care; freelancers are coming together for greater resiliance; and community-owned co-ops are safeguarding jobs when big business moves out. CO-OP ECONOMY / 2019 PAGE 7

Number of co-ops and turnover by sector

Agriculture Arts Digital Education Energy Finance Food Health and and and service and social culture media environment and pubs care

434 159 124 303 245 522 180 97 £7.9bn £5.9m £7.8m £354.3m £24.1m £241.9m £36.9m £168.9m

Housing Manufacturing Social clubs Professional Retail Sports Transport Other and trade and legal and unions services recreation

700 77 2,597 151 689 553 22 310 £668.8m £369.8m £551.4m £98.3m £26.5bn £707.0m £7.0m £34.9m CO-OP ECONOMY / 2019 PAGE 8

Customer control

Retail societies, those co-ops owned and controlled by their customers, enjoyed an increase in turnover of over £175 million to more than £13 billion. Led by The Co-op, the UK’s best known and most visible co-op, customer-owned retailers make up four of the UK’s top 10 co-ops by turnover. Customer owned retailers The retail societies represent something different to the major supermarket chains. Through responsible business – putting Annual co-op values and principles into practice every day – they 2019 2018 2017 2016 2015 give their members a chance to consume in a way which turnover has wide-ranging benefits. £13.0 £12.9 £13.2 £13.3 £14.1 bn bn bn bn bn Retail societies champion local produce, Fairtrade and the communities in which they operate. For example, “We are living in fractious and uncertain times where many communities feel disconnected and vulnerable. It is in such a climate since November 2017 The where the true value of co-operation can shine through, just like it did Co-op has helped raise in Rochdale 175 years ago.” £19 million for local causes. Steve Murrells, The Co-op CO-OP ECONOMY / 2019 PAGE 9

Total worker Worker owned control 492 440 Worker co-ops are businesses owned and controlled by the workers themselves. Combined with employee trusts, annual turnover is at a record high, at almost £11 billion. As the success of the business and the interests of the workers are intertwined, the benefits are far-reaching and go above and beyond financial reward.

An increased stake and say in how the workplace is run is a positive factor in determining well-being. Worker co-ops also offer high levels of democratic governance, which has 2019 2015 demonstrable social, political and economic benefits. Some worker co-ops, like Suma in Elland, West Yorkshire, and Manchester’s Unicorn Grocery, operate on a equal pay structure. Subsequently, there is no gender pay gap. Annual turnover

“Our experience is that workers are much more motivated when they own and run the business, and sustainable businesses are good for the economy, communities, workers and their families. We’re 2019 2018 2017 2016 2015 supporting the #1MillionOwners call for more investment in worker ownership.” £11.0 £10.9 £10.6 £10.4 £10.4 Debbie Clarke, Unicorn Grocery bn bn bn bn bn CO-OP ECONOMY / 2019 PAGE 10

Community control

Communities are taking ownership and control of local assets. It is a growing movement as those who most value their local pubs, shops, or even football clubs and pools, take positive action together. More than £80m has been raised by Community Shares since 2015. Institutional investment has been Co-op pubs increasingly important in scaling up the ambition of projects, with £4.4m of matched equity provided by funders during the same period.

180 Community-owned pubs, alongside local shops and community energy, proved early trailblazers and continue to be a mainstay of the sector. The number of co-operatively owned pubs, like the The Anglers Rest in the Peak District, has increased five-fold since 2012.

“It’s the way forward. Once you become a free house you’re really in charge of your own destiny. You have to believe in what you’re doing. The rewards are great – we now own our own pub. It’s a protected asset owned by the local community 32 and a shining beacon for all those looking to achieve the same thing.” Mark Newcombe, Crauford Arms 2019 2012 CO-OP ECONOMY / 2019 PAGE 11

Farmer 153,486 farmer control owners

Co-ops give farmers more control over their produce and are 434 a major force in the co-op economy, with nine businesses farmer featuring in the top 20 best performing UK co-ops by co-ops turnover.

While turnover has risen to a three-year high at just over £7.9 billion, the number of farmer co-ops has fallen for the fourth year out of five. A total of 434 farmer co-ops now operate in the UK – down from 440 the previous year. Consolidation within the co-op sector, alongside conversions Annual to other legal forms, are among the reason for the latest turnover 2019 2018 2017 2016 2015 reduction. £7.9 £7.8 £7.5 £8.0 £8.8 bn bn bn bn bn The number of farmer members has dropped by 1.8% to 153,486 after successive increases since 2015. “The supply chain is getting controlled by fewer and fewer players who all want to take more money out of farmers’ pockets. By learning better practices, by co-operating better, we’ll all do our jobs better.” Tim Wilson, Aspatria Farmers CO-OP ECONOMY / 2019 PAGE 12

The co-operative top 100

Top 100 ranking Organisation name Industry sector Turnover 2019 2018 1 1 The John Lewis Partnership Retail £10,316,700,000 2 2 The Co-operative Group Retail £10,162,000,000 3 3 Arla Foods Agriculture £2,643,868,181 4 4 National Merchant Buying Society (NMBS) Retail £1,787,019,000 5 5 The Midcounties Co-operative Retail £1,177,059,000 6 6 Central England Co-operative Retail £827,804,000 7 8 Openfield Group Agriculture £627,518,000 8 9 Mole Valley Farmers Agriculture £490,523,000 9 11 Dale Farm Co-operative Agriculture £482,375,000 10 10 Southern Co-operative Retail £450,851,000 11 12 Scotmid Co-op Retail £377,856,000 12 13 East of England Co-op Retail £353,513,000 13 14 Berry Gardens Growers Agriculture £345,642,000 14 16 Greenwich Leisure Sports and Recreation £277,051,004 15 18 The AF Group Agriculture £273,662,418 16 20 First Milk Agriculture £248,154,000 17 21 Scott Bader Company Manufacturing £225,817,000 CO-OP ECONOMY / 2019 PAGE 13

Top 100 ranking Organisation name Industry sector Turnover 2019 2018 18 19 LacPatrick Agriculture £223,841,024 19 17 Lincolnshire Co-op Retail £213,626,000 20 22 Fram Farmers Agriculture £194,748,551 21 23 The Channel Islands Co-operative Society Retail £183,609,000 22 26 United Oilseed Producers Agriculture £156,119,771 23 24 GrainCo Agriculture £151,964,582 24 15 Fane Valley Agriculture £135,793,000 25 25 ANM Group Agriculture £124,703,000 26 27 Woldmarsh Producers Agriculture £114,715,438 27 28 Farm Fresh PO Agriculture £102,279,737 28 32 Brandsby Agricultural Trading Association (BATA) Agriculture £101,922,864 29 29 United Farmers Agriculture £100,291,103 30 30 Organic Milk Suppliers Co-operative (OMSCo) Agriculture £92,054,000 31 31 Agricultural Central Trading Agriculture £91,218,794 32 33 Yorkshire Farmers Livestock Marketing Agriculture £87,606,873 33 36 Chelmsford Star Co-operative Retail £83,601,696 34 34 The Wine Society Retail £82,032,000 35 35 Meadow Quality Retail £80,359,010 36 37 G's Growers Agriculture £78,842,000 37 38 Heart of England Co-operative Retail £74,203,000 38 39 Grand Union Housing Group Housing £73,832,000 39 42 Freedom Leisure Sports and Recreation £67,440,699 40 40 Aquascot Manufacturing £63,622,428 41 41 Speciality Produce Agriculture £63,454,231 42 49 Scottish Pig Producers Agriculture £63,301,409 43 44 Scotlean Pigs Agriculture £63,135,302 44 45 The Camping and Caravanning Club Membership associations, social £61,639,000 clubs and trade unions CO-OP ECONOMY / 2019 PAGE 14

Top 100 ranking Organisation name Industry sector Turnover 2019 2018 45 43 Tarff Valley Agriculture £59,789,686 46 48 Clawson Agriculture £57,466,000 47 46 Rochdale Boroughwide Housing Housing £57,182,000 48 47 The Co-operative Academies Trust Education £55,904,000 49 50 Suma Foods Retail £54,341,735 50 51 Trivallis Housing £52,448,000 51 54 Steer Davies Gleave Professional and Legal services £49,634,513 52 56 Greenfields Community Housing Housing £47,091,000 53 53 Clynderwen and Cardiganshire Farmers (CCF) Agriculture £45,158,030 54 55 Bron Afon Community Housing Housing £45,155,000 55 62 South Caernarvon Creameries Agriculture £45,105,153 56 57 Tullis Russell Group Manufacturing £35,009,000 57 58 Southern Farmers Agriculture £34,922,310 58 61 BAKO Western Retail £33,991,018 59 59 Surrey County Cricket Club Sports and Recreation £33,894,994 60 60 Phoenix Community Housing Housing £33,423,000 61 66 HF Holidays Sports and Recreation £31,460,000 62 63 Watford Community Housing Trust Housing £31,410,000 63 64 Community Gateway Association Housing £31,259,579 64 65 Mockbeggar Retail £30,371,406 65 68 Radstock Co-operative Society Retail £30,205,690 66 67 Osborne Co-operative Academy Trust Education £28,674,000 67 71 Local Care Direct Health and Social Care £27,187,283 68 70 Hafod Care Association Limited Housing £26,478,000 69 73 UIA Mutual Finance £24,940,000 70 80 Aspatria Farmers Agriculture £24,460,718 71 75 Argyll Community Housing Association Housing £24,329,000 72 74 Infinity Foods Retail £24,279,566 CO-OP ECONOMY / 2019 PAGE 15

Top 100 ranking Organisation name Industry sector Turnover 2019 2018 73 69 Scottish Shellfish Marketing Group Agriculture £24,023,761 74 78 Tamworth Co-operative Society Retail £23,392,000 75 77 Cartrefi Cymru Health and Social Care £23,309,000 76 76 Education and Leadership Trust Education £23,183,826 77 82 Society of Growers of Topfruit Agriculture £19,303,081 78 84 Hay and Brecon Farmers Agriculture £19,203,815 79 83 Merthyr Valleys Homes Housing £19,022,000 80 95 Farm Stock (Scotland) Agriculture £17,725,778 81 86 Essential Trading Retail £17,513,143 82 85 Warwickshire County Cricket Club Sports and Recreation £17,275,390 83 81 CLIC Cooperative Trust Education £17,217,912 84 87 Be Caring Health and Social Care £17,170,431 85 88 South Armagh Farming Enterprises (SAFE) Agriculture £17,143,877 86 99 Coastal Grains Marketing Agriculture £17,067,904 87 96 The Shropshire Doctors' Co-operative (ShropDoc) Health and Social Care £16,860,848 88 89 Dengie Crops Agriculture £16,761,683 89 90 Lancashire County Cricket Club Sports and Recreation £16,462,097 90 91 Watmos Community Homes Housing £15,904,000 91 92 Fresh Growers Agriculture £15,838,121 92 94 Leisure in the Community Sports and Recreation £15,663,938 93 97 East of Scotland Farmers Agriculture £15,379,332 94 98 Littleton & Badsey Growers Agriculture £15,048,445 95 106 East of Scotland Growers Agriculture £14,885,612 96 103 BAKO Wales Retail £14,454,551 97 100 Best Western Hotels Food service, accommodation, pubs £14,271,051 98 101 Salford Community Leisure Sports and Recreation £14,123,388 99 105 North East Grains Agriculture £13,896,085 100 102 Accent Corporate Services Finance £13,711,000 CO-OP ECONOMY / 2019 PAGE 16

Top 10s

CUSTOMER OWNED RETAILERS WORKER CO-OPS Rank Organisation name £ Turnover Rank Organisation name £ Turnover 1 The Co-operative Group £10,162,000,000 1 Suma Foods £54,341,735 2 The Midcounties Co-operative £1,177,059,000 2 Infinity Foods Co-operative £24,279,566 3 Central England Co-operative £827,804,000 3 Essential Trading Co-operative £17,513,143 4 The Southern Co-operative £450,851,000 4 Leading Lives £11,583,087 5 Scotmid Co-operative £377,856,000 SELF-EMPLOYED CO-OPS 5 Clansman Dynamics £10,236,336 6 East of England Co-operative £353,513,000 Rank Organisation name £ Turnover 6 Dulas £9,404,630 7 Lincolnshire Co-operative £213,626,000 1 Shropdoc £16,860,848 7 Unicorn Grocery £7,759,156 8 Channel Islands Co-operative £183,609,000 2 Tees Bay Pilots £3,635,481 8 Edinburgh Bicycle Co-operative £7,100,000 9 Chelmsford Star Co-operative £83,601,696 3 Glasgow Taxis £2,694,462 9 Michael Jones Jeweller £7,051,525 10 The Wine Society £82,032,000 4 Licensed Taxi Drivers Association £2,498,337 10 GreenCity Wholefoods £6,471,877 5 DWP Harvesting £1,791,524 6 Builders Merchants Federation £986,836 7 South Acton Community £928,865 Builders Co-operative 9 T.O.A. Taxis £689,069 8 Town Taxis (Coatbridge) £620,696 10 East Dumbartonshire Taxi £571,541 Owners Association CO-OP ECONOMY / 2019 PAGE 17

Top 10s

ENERGY AND ENVIRONMENT CO-OPS HEALTH AND SOCIAL CARE CO-OPS Rank Organisation name Turnover Rank Organisation name Turnover 1 Westmill Solar Co-operative £1,966,174 1 Local Care Direct £27,187,283 2 Bath and West Community Energy £1,520,992 2 Cartrefi Cymru Co-operative £23,309,000 3 High Winds Community Energy £1,095,983 3 Be Caring £17,170,431 4 Bristol Energy Co-op £1,057,407 4 Shropdoc £16,860,848 5 Sheriffhales Community Energy £897,950 5 SELDOC £13,578,078 6 Crest Co-operative £871,623 FARMING CO-OPS 6 Leading Lives £11,583,087 7 Westmill Wind Farm Co-operative £805,451 Rank Organisation name Turnover 7 BARDOC £11,325,585 8 Drumlin Wind Energy Co-operative £647,611 1 Arla Foods £2,643,868,181 8 East Lancashire Medical Services £10,405,625 9 Wiltshire Wildlife Community Energy £621,091 2 Openfield Group £627,518,000 9 Highland Home Carers £7,885,000 10 Environmental Conservation £617,646 3 Mole Valley Farmers £490,523,000 10 The Foster Care Co-operative £6,014,083 Co-operative 4 Dale Farm Co-operative £482,375,000 5 Berry Gardens Growers £345,642,000 6 The AF Group £273,662,418 7 First Milk £248,154,000 8 LacPatrick £223,841,024 9 Fram Farmers £194,748,551 10 United Oilseed Producers £156,119,771 CO-OP ECONOMY / 2019 PAGE 18

Top 10s

MOST CO-OPERATIVE REGIONS MOST CO-OPERATIVE PLACES Why are rural areas the most Rank Region Co-ops per Rank Local authority district Co-ops per co-operative? 10,000 people 10,000 people The top three most co-operative places 1 North East 1.89 1 Na h-Eileanan Siar 8.16 are all in the Scottish Isles. Co-operative 2 South West 1.66 2 Orkney Islands 5.91 businesses often spring up out of a need 3 Wales 1.53 3 Shetland Islands 5.63 to solve a local issue, and therefore in rural or remote areas where services and jobs 4 Northern Ireland 1.37 4 Eden 4.55 may be more limited or at risk, people 5 Yorkshire and The Humber 1.09 5 Allerdale 3.6 come together to form a co-op – perhaps 6 Scotland 1.07 6 Powys 3.55 to save a much loved community space, 7 West Midlands 0.97 7 West Devon 3.25 valued service or business to safeguard 8 North West 0.97 8 Purbeck 3.21 local jobs. More densely populated urban conurbations have more co-ops, but 9 East Midlands 0.96 9 Argyll and Bute 3.11 not when compared to the size of the 10 Northumberland 0.93 10 Northumberland 3.07 population. CO-OP ECONOMY / 2019 PAGE 19

About this report

The Co-op Economy report has been compiled by Co-operatives UK on behalf of the UK co-operative movement. The report analyses data from thousands of co-op businesses across the UK for the period 1 Feb 2018 to 31 Jan 2019.

Co-operatives UK monitors a range of data sources to provide the most comprehensive intelligence available on the UK co-operative sector.

Data is collected from a range of sources including the Financial Conduct Authority and Companies House and it is continually updated to ensure it is accurate, complete and trustworthy.

We make our data openly available to allow anyone to access, analyse, build upon, share, and help us improve it. By making the data open, Co-operatives UK affirms this and offers a route for users to identify gaps and areas for improvement. The annual figures featured in the Co-op Economy report are rebased when new data is added or existing data updated. This means year-on-year data and trends are accurate in each report, though there may be differences if comparing across different publications. In 2015-16, a significant change was made to the methodology used to compile the dataset. This has led to an increase in its accuracy, but with a notable change in level of turnover reported in previous reports:

Find out more at ww.uk.coop/open-data Thousands of businesses, one network

Co-operatives UK is the network for Britain’s thousands of co-operatives. We work together to promote, develop and unite member-owned businesses across the economy. From high street retailers to community owned pubs, fan owned football clubs to farmer controlled businesses, co-operatives are everywhere and together they are worth billions to the UK economy.

Co-operatives UK Limited Holyoake House Hanover Street Manchester M60 0AS Tel 0161 214 1750

www.uk.coop/economy

Design concept and illustrations created by Co-operatives UK member Creative Coop