Calgary Co-op

Calgary Co-op
Company typeCooperative
IndustryRetail
FoundedNovember 1956; 68 years ago (1956-11)[1]
Headquarters
Calgary, Alberta
,
Canada
Products
  • Groceries
  • Fuel
  • Pharmacy
  • Liquor
  • Cannabis
Websitecalgarycoop.com Edit this at Wikidata

Calgary Co-operative Association Limited, trading as Calgary Co-op, is a retail cooperative operating in Calgary, Alberta, Canada. It was formerly associated with the Federated Co-operatives (FCL) system, but began cutting ties with the organization in 2019.[2]

History

Opened in the 1940s as a food store operated by the United Farmers of Alberta in Calgary and eventually changing hands to the Alberta Co-operative Wholesale Association (ACWA) in 1951, the Calgary Co-operative Association was founded to operate the Calgary food store independently of the ACWA, partially due to member dissatisfaction with how the ACWA managed the venture.[1] The Calgary Co-operative Association purchased the Calgary store from ACWA in 1956 for $58,000.[1]

In August 2019, it was announced that Calgary Co-op had entered into an agreement for its groceries to be supplied by the Alberta arm of Overwaitea Food Group (now Pattison Food Group), owner of commercial competitor Save-On-Foods, beginning in April 2020. The organisation stated that this change would "better serve members and ensure long-term sustainability". Calgary Co-op's High River grocery store will not be part of this change and will continue to be supplied by FCL, as will its petroleum and convenience store operations. FCL criticized Calgary Co-op's decision to switch to a private company as supplier, with its CEO Scott Banda stating that it was "sad to see them moving away from the Co-op family they've helped build".[3][4][5]

With the change, the chain migrated to two private label brands: "Founders & Farmers"—which is positioned as a value-oriented brand, and "Cal & Gary's"—which is positioned as a premium brand with nods to the city and its culture. Both brands emphasize the involvement of local producers where applicable.[6][7] The changes resulted in the closure of FCL's Calgary distribution centre, leading to the loss of 200 jobs.[8]

In April 2020, Calgary Co-op sued FCL for oppressive conduct, alleging that the organization introduced a new "loyalty program" that would offer member co-operatives a quarterly rebate on wholesale petroleum purchases, provided that 90% of their entire stock is purchased via FCL. Calgary Co-op alleged that the loyalty program was in direct retaliation for its agreement with Pattison Food Group, was implemented without consultation from its members, and resulted in an unequal distribution of profits that would harm Calgary Co-op.[8][2]

In November 2022, Calgary Co-op underwent a rebranding, introducing a new logo that specifically uses "Calgary Co-op"—which had long been the legal and colloquial name for the co-operative—as its public-facing brand rather than "Co-op" for the first time, and announcing plans for a revamped reward program for members.[9][10]

Amid the ongoing legal dispute, Calgary Co-op pulled out of its fuel supply agreements with FCL in January 2023.[2] In December 2023, a judge ruled that the program resulted in "disproportionate distribution" of FCL profits that directly harmed Calgary Co-op, and ordered FCL to pay out an amount equal to how much it would have received in payments from the loyalty program for fuel purchases between November 2019 and January 2023.[2] The lawsuit exposed patterns of increased animosity between FCL and Calgary Co-op in the lead-up to the Pattison agreement.[2]

Present operations

Calgary Co-op has over 440,000 members, 3400 employees, assets of $441 million and annual sales over $1 billion. Calgary Co-op provides services in food, petroleum, home health care, pharmacy and cannabis.[citation needed]

In January 2023, Calgary Co-op acquired Willow Park Wines & Spirits, a liquor store chain with locations in Alberta and Saskatchewan.[11] In January 2024, Calgary Co-op acquired a majority stake in Vaughan, Ontario-based pharmacy chain Care Pharmacies.[12]

See also

References

  1. ^ a b c "Calgary Co-op 50th Anniversary Publication". ISSU. 2011-03-16. p. 8. Archived from the original on 2011-08-12. Retrieved 2021-01-22.
  2. ^ a b c d e "Longtime supplier mistreated Calgary Co-op in bitter dispute over switch to new food source, court finds". Calgary Herald. 2023-12-22. Retrieved 2024-02-17.
  3. ^ "Calgary Co-op to switch food supplier to Save-On-Foods". CTV News Calgary. 2019-08-27. Retrieved 2019-08-30.
  4. ^ "Calgary Co-op to source groceries from Save-On-Foods". Calgary Herald. 2019-08-26. Retrieved 2019-08-30.
  5. ^ MacPherson, Alex (2019-08-08). "FCL 'disappointed' by Calgary Co-op's decision to pull food purchasing". Saskatoon StarPhoenix. Retrieved 2019-08-30.
  6. ^ Maria, Vasco (2020-09-18). "Calgary Co-op launches two new brands with a focus on buying and eating locally made foods". CTV News Calgary. Archived from the original on 2020-09-22. Retrieved 2021-07-13.
  7. ^ "Calgary Co-Op Launches Unique Hyper-Local Private Brands". Retail Insider. 2020-06-26. Retrieved 2021-07-13.
  8. ^ a b "Breakdown of Calgary Co-op grocery partnership sparks layoffs and lawsuits". Canadian Press. 2020-04-05. Retrieved 2024-02-17 – via CTV News Calgary.
  9. ^ "Co-op unveils new look, hints at reward app in 2023". CTV News Calgary. 2022-11-09. Retrieved 2024-02-17.
  10. ^ Toneguzzi, Mario (2022-11-15). "Calgary Co-op Rebrands Retail Operations [Interview]". Retail Insider. Retrieved 2024-02-17.
  11. ^ "Calgary Co-op acquires Willow Park Wines & Spirits". Canadian Grocer. Retrieved 2024-02-17.
  12. ^ "Calgary Co-op to acquire national pharmacy chain". Global News. Retrieved 2024-02-17.

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