Consumer Food Co‐ops in the Age of Grocery Giants

Jon Steinman

American Journal of Economics and Sociology, 2020, vol. 79, issue 3, 833-875

Abstract: As the primary purveyors of food within most neighborhoods, food retailers—particularly grocery stores—are key determinants of health. Grocery stores are also an important venue for food producers to access their customers. Over the previous 100 years—and more rapidly over the previous 40 years—ownership among grocery retailers has become concentrated in fewer firms. As a consequence, grocery stores have emerged as food system “gatekeepers.” On one side of the gate are consumers, who depend on these firms to access the food supply. On the other side are the food producers: farmers, ranchers, fishers, processors, and manufacturers. As concentration in the grocery retail sector increases, so too have the grocery giants’ practices enabled them to assume much stronger positions in the buyer‐supplier relationship. With a focus on the United States and Canada, this article examines the history and rise to dominance of the largest grocery retailers and the impacts this dominance has had on the food system. Whereas most food retailers are structured under private or publicly traded models of ownership, the cooperative business model—specifically, the consumer‐cooperative model—is presented as an important alternative. Cooperatives are a democratic form of ownership that enables the people who most depend on the grocery store (shoppers) to become equal owners in the business along with thousands of others in their community. The importance of consumer‐food cooperatives (food co‐ops) is examined, including specific case studies of small and large urban centers where food co‐ops are providing substantial benefits to the communities they operate in.

Date: 2020
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