Is it a crazy idea to try and save Kokua Market?
“A question that sometimes drives me hazy: am I or the others crazy?” — Albert Einstein -
As you have probably heard, Kokua Market has stumbled into some challenging times and recently put out a call for help.
Is it a crazy idea to consider this an opportunity to reinvent Kokua as a bright spot of innovation that once again pioneers new ways of connecting communities to its producers?
Is it crazy to think that breathing new life info Kokua Market might be an opportunity to engage a whole new generation in taking steps to reclaim control of our food sovereignty?
Is it crazy to think that this little market with a big heart can demonstrate to corporate behemoths who have built their identities on the principles Kokua was founded upon how zero-waste solutions can be implemented into daily operations and demonstrate proof of concept for what a circular economy could look like in Hawaii?
I’ve pledged to purchase a $150 share in Hawaii’s first food co-op because I believe in their compelling vision to reinvent themselves and continue to push the boundaries of what an thriving, resilient and ecologically just local food system in Hawai’i can look like.
History
Founded in 1971 by a group from the University of Hawaii, KokuaCountry Foods was established as a nonprofit organization that would provide healthy, organic food to Honolulu. In those days, supermarkets did not carry whole wheat flour, organic brown rice or quarts of Bulgarian yogurt. During its first few years Kokua could barely keep stock on its shelves because it was just about the only place on Oahu selling natural foods.
In 1981, when the consumer co-op statute was passed by the legislature and signed into law, Kokua reincorporated as a consumer co-op. This enabled the store to sell membership shares, so that it could have funds for expansion and equipment.
Kokua has served as an incubator for many local food businesses, supports local agriculture, and has been an asset to the community since its inception in 1971, as Hawaii’s first and largest natural foods cooperative. Kokua adheres to the founding cooperative principles shared with coops around the world, including REI, Credit unions (which are cooperative banks), and many supermarkets in Japan and Europe. A Board of Directors is elected by the membership and acts as the governing body.
What Happened?
Over its 45+ year history, Kokua Market has had ups and downs but 2018 was a perfect storm of problems. The construction project next door made access to the store difficult and reduced sales at precisely the time when the store was struggling with increased accounts payable and payroll.
Crisis Mode
Last year the Board sent out a plea to the membership asking for donations for a store remodel/relaunch. In fact, Kokua wasn’t just doing a remodel — the co-op was and is in serious financial trouble. A number of donations were made through Go Fund Me, nearly $25,000, as of January 12, 2019 that went directly to Kokua’s bank account. This money is being used for operations and paying off a small portion of the money we owe our vendors, farmers and suppliers.
The existing board members recognized they lacked the experience and resources to drive a recovery plan forward and recruited new members and industry veteran volunteer professional advisors to lead the rescue of Kokua, including former General Manager (and founder of Honolulu Weekly) Laurie Carlson.
Rescue Plan — two ways you can help Kokua now
One: The foundation of the rescue plan is increasing member equity. Kokua Market must raise membership shares in order to get loans that will help us recapitalize the business. Rather than asking for donations, we are asking each member to buy one or more equity shares in the co-op. Most members already have one share, which entitles them to shop at member prices, enjoy member discount days and vote for the board of directors. Members are permitted (and, in fact, now passionately encouraged) to buy up to 20 shares total. Existing members can purchase up to 19 additional shares of stock. The price has remained the same as when the share system was first established — $150 per share.
Kokua has sold $120,000 worth of Kokua stock since re-booting it’s capital campaign and business model in January of this year, and needs to sell only 200 more shares by February 22nd in order to raise the necessary capital to usher the market into its next evolution. Read here about the new vision for Kokua https://www.kokuamarket.com/the-kokua-2020-initiative
Your investment will not be used unless the full capitalization target is reached. If you are able to help out and contribute in any way, please contact Laurie directly with your pledges and ideas: laurie@slowfoodoahu.org.
Two: Help Solve Cash Crunch. Because Kokua’s board has pledged not to use these funds until they have lined up additional financing and are ready to relaunch, Kokua finds itself in a crunch this week with regard to short term capital and needs a little more breathing space to get the restructuring plan in place.
Donations are needed right now to keep the lights on, employees paid and the store open through March. If the Market can hold onto its lease for another 30 days, it has a strong chance to reboot successfully.
You can donate at the Go Fund Me link below (and tell your friends to kokua Kokua however they can). Every bit helps: https://www.gofundme.com/support-kokua-market-coop
The many people and communities which have been positively impacted by Kokua Market over the years — and the people and communities Kokua has yet to touch — mahalo you for your time, consideration, and for everything else that you do to strengthen our communities and the food systems upon which we depend.
Mahalo,
Matthew K Lynch
