Types of Co-ops
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Cooperatives exist in many industries, providing essential goods and services such as childcare, transportation, farming, solar energy, and financial services. They are unique because they are owned and controlled by their members, who can be consumers, producers, workers, businesses, municipalities, or even other cooperatives.
Consumer Cooperatives
Consumer cooperatives are owned by individuals who use the co-op to purchase goods and services. By pooling their demand, members can access better pricing, availability, and selection than they might as individual buyers. These cooperatives operate in many sectors, including grocery stores, credit unions, utilities, housing, and childcare.
Some well-known examples include REI, a consumer-owned outdoor gear retailer, and Bloomingfoods, a grocery cooperative. Credit unions like Everwise Credit Union provide financial services to their member-owners, while utility cooperatives such as Hendricks Power deliver electricity to rural communities.
Producer Cooperatives
Producer cooperatives are formed by individuals or businesses that produce similar goods or services. Members join together to negotiate better prices, access larger markets, or purchase supplies at lower costs. Many agricultural cooperatives provide both marketing and supply services to their members.
For instance, Organic Valley is a well-known producer cooperative in the dairy industry, allowing farmers to sell their organic products under a shared brand. Keystone Cooperative is another example, helping agricultural producers collaborate for better market access. Bloomington Farm Stop Collective enables small farmers to sell their products collectively, giving them greater visibility and stability in the marketplace.
Purchasing/Shared Services Cooperatives
Purchasing cooperatives help businesses and organizations reduce costs by combining their buying power. Instead of negotiating as separate entities, members benefit from bulk purchasing, better pricing, and improved delivery options. These cooperatives serve a wide range of sectors, including independent retail stores, hospitals, schools, and farm supply businesses.
Do It Best, for example, is a cooperative that supports independently owned hardware stores by giving them access to wholesale purchasing and distribution services. Carpet One helps small flooring and home improvement retailers compete with larger chains. Similarly, the Independent Welding Distributor’s Cooperative and the American Pharmacy Cooperative provide essential supplies and support to their respective industries.
Worker Cooperatives
Worker cooperatives are businesses that are owned and governed by their employees. Unlike traditional businesses, where decision-making rests with external shareholders or executives, worker-owners have a direct role in shaping the company’s operations and long-term strategy. Profits are distributed among worker-members based on factors such as hours worked, seniority, or job position.
These cooperatives exist in many industries, including food production, manufacturing, and creative services. Equal Exchange, for example, is a worker cooperative that imports and distributes fair trade coffee and other products. Another example is Design Anarchy Co-op, a worker-owned collective that provides creative services.
Multi-Stakeholder Cooperatives
Multi-stakeholder cooperatives, also known as hybrid or solidarity cooperatives, are unique because they are owned by two or more types of members who play different roles within the organization. These cooperatives might include consumers, workers, producers, or investors, all collaborating to meet shared needs.
One example is Weaver Street Market, a grocery cooperative that is jointly owned by both workers and consumers. By combining multiple perspectives and interests, multi-stakeholder cooperatives create more inclusive and sustainable business models that serve diverse community needs.
Indiana Cooperative Development Center
225 S. East Street, Suite 252
Indianapolis, IN 46202
Phone: 317.692.7707
Email: info@icdc.coop
ICDC is an equal opportunity employer and provider.