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    Save the Isla Vista Food Co-op

    Santa Barbara’s New Whole Foods Store Threatens Longtime Healthy Lifestyle Establishment


    Wednesday, February 17, 2010
    By Lyz Hoffman
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    In the name of all that is healthy, the Isla Vista Food Co-op is not going to condemn Whole Foods.

    That is not to say, however, that the longstanding Isla Vista institution—which was founded around 1972 — harbors no animosity towards its new competition. Since it opened in October of last year, Santa Barbara’s Whole Foods has attracted many a customer, many of which were once IV Co-op devotees.

    According to the co-op’s manager Melissa Cohen, the rumors regarding a decline a business are true — to a certain extent. Declaring a “14 percent drop in sales” for October 2009, Cohen stressed that, although the co-op took a substantial hit during Whole Food’s first month in business, it has also been “recovering since then, but is not fully recovered.”

    Citing both the current economy and suspected decrease in volume among non-Isla Vista residents, Cohen said some cost-saving measures have been put into play, including a reduction in store hours. Plans to implement special sales are also in the works, according to Cohen.

    In an effort to remind the community of the co-op’s commitment to healthy, organic, locally-grown food, longtime co-op member Eric Cardenas has started an online Paypal program to raise money for a co-op ad to run in Edible Santa Barbara, which Cohen calls an “amazing publication.”

    Asking supporters to “rally in a small gesture for the Isla Vista Food Co-Op,” Cardenas has provided the store with a big opportunity. Since the campaign for the ad started, Cohen attests to “a surge in people who want the IV Co-Op to stay strong.” Echoing that statement, Cardenas says that the campaign for the ad has “generated great amounts of activity,” including a thriving Facebook page and a carpool system designed to make the trip to IV easier for downtown residents.

    Crucial, said Cohen, is for the community to know that chain stores do not contribute to the local economy. “We want people to understand that when you support non-local businesses,” she said, “the money leaves the community.”

    Such facts are backed up by Santa Barbara County’s Agricultural Production Report from 2008, provided by Cardenas. Explaining the report, Cardenas cites “the multiplier effect,” which is “the impact that a dollar spent locally (on locally-owned businesses) has on the local economy when it generates a chain reaction of economic activity.” According to Cardenas, for every dollar spent at a locally-owned store in Santa Barbara, 45 percent is retained by the community, as opposed to only a 15 percent retention for the same dollar spent a chain store.

    Hence the importance — and literal value — of shopping at the co-op, says Cardenas. “[Consumers] can rest assured that the value of their dollar is reverberating throughout the community, more than likely being re-spent (at least in part) within the community.”

    Nevertheless unwilling to debase Whole Foods, Cohen attested to the co-op’s convivial spirit. “We welcome them as another option.” Nevertheless loyal, though, Cohen deemed her store an “amazing resource for what we do.” The same can be said of Santa Barbara’s Whole Foods, which “offers tri-county produce and local wines,” says the store’s team leader John Jurey. “We have contributed to the local economy by creating jobs. We all earn and spend within the community. [Whole Foods] is always concerned about our competition and don’t want to put anyone out of business,” Jurey added. “That being said, we are still capitalists and believe that healthy competition spurs everyone to be their best.”

    In terms of raising money for the ad, co-op supporters can rest a little bit more reassured as, according to Cardenas, donations have helped. “We’re a little more over halfway there,” he said. Not one to dissuade further aid, Cardenas says that, once the money necessary for the ad has been raised, all additional donations will be funneled 100 percent to the co-op.

    To contribute to the Isla Vista Food Co-op ad campaign, please visit this Paypal site.

    Comments

    Independent Discussion Guidelines

    I will never go to Whole Foods because I don't have a car! How about instead of just organizing carpool options for downtown residents, raise awareness in I.V. about the Co-op. Many of my I.V. resident peers either have misconceptions about prices and the selection, or don't know about it. But it could be the most convenient option for these more-local-than-downtown shoppers.

    seaslug (anonymous profile)
    February 17, 2010 at 3:26 p.m. (Suggest removal)

    This takes me way back to when the wonderful Earthling bookstore was throwing stones at Borders and Barnes and Noble for forcing them out.

    The sad truth is that we live in a capitalist society and if people wanted to go to local venues to shop, then they would. Santa Barbara has always had a very fickle support for it's local shops. Even back when it was a town filled with more local shops than chains.

    I agree Seaslug, that not many people even know about the IV Co-op.

    But beyond that, these two shops are located in quite different areas. It's not as though WF opened in Goleta.

    I wonder if the local Farmer's Markets are also seeing loss of sales since Whole Foods opened.

    Native1 (anonymous profile)
    February 17, 2010 at 5:33 p.m. (Suggest removal)

    I've recently made IV Food Co-op my main source of groceries (along with the Farmer's Markets). They offer a friendly atmosphere, a good selection of truly quality foods, and great prices. You get all sorts of benefits if you become a member. And shopping there reminds me of the good old days. People, if you value something you have to support it. IV Co-op is so worth your support, and you'll be glad you gave it a try.

    While you're at it, stop by the new Wednesday Farmer's Market at Harding School on the Westside. It's small and friendly and could also use an uptick in business.

    These are our people, not some corporate schemers who suck money out of the local economy every night after closing time. If we don't look out for these great resources, it won't be long before they're gone and there's no place left to shop but You Know Where. So what kind of world do you want to live in? It's up to you.

    OwenDell (anonymous profile)
    February 17, 2010 at 6:05 p.m. (Suggest removal)

    Are you forgetting that Whole Foods employs LOCAL people? They pay LOCAL taxes? They sell some LOCAL products? They lease a LOCALLY owned building. I too like the IV Food Co-Op but come on think a little.

    prjaco (anonymous profile)
    February 17, 2010 at 6:42 p.m. (Suggest removal)

    From the reading I've done on the subject over the years, nearly 80 percent of the money received by chain operations leaves town within 24 hours. Of course some of it does stay in the community, but the difference between a local and a chain business is significant. So don't make the mistake of thinking that because Whole Foods spends some money in the community that they are the equivalent of a local business. They are not. And yes, it does matter.

    OwenDell (anonymous profile)
    February 17, 2010 at 7 p.m. (Suggest removal)

    From facebook:

    "Thanks, sb independent. now we all look like morons who don't know how to run our store (which, as a side note, the co-op happens to be amazingly run and amazingly loved right now). come and "save us" so we don't fail. yeah. thanks. no "great example of cooperation in our community". just "save this poor business from the terrible whole foods". awesome. great. meh."

    -Melissa Cohen

    sblover2222 (anonymous profile)
    February 17, 2010 at 7:35 p.m. (Suggest removal)

    Think of all the permit and developer fees paid by WF to the City of SB to renovate the property. Their business generates sales taxes and they employ people from the area. So what if 80% of the money they make goes somewhere else. That comment makes no sense. They hire local people who then spend their money here. Just because a business is local (whatever the definition of that is) does it spend more money in the community? I don't think so. WF is a public company. Maybe that makes it a bad company? Do you not shop at Macy's? Sears? Do you use electricity because So Cal Edison sends its money out of the area too don't they? Do you buy things on the internet say from Amazon? Because if you do then you are REALLY taking business away from the local merchants and hurting the local economy. Do some more reading.

    prjaco (anonymous profile)
    February 17, 2010 at 10:49 p.m. (Suggest removal)

    Whole Foods claims things are "local" but you know what really happens? Those "local" items are shipped out of the county only to be returned on a huge shipment truck. the produce and wine does not come directly from the source, instead leaves the county, goes to some warehouse in who knows where and then comes to sb...not that local is it? thats "the man" taking charge in this town

    busta (anonymous profile)
    February 17, 2010 at 11:25 p.m. (Suggest removal)

    viva la IVFC!!

    busta (anonymous profile)
    February 17, 2010 at 11:29 p.m. (Suggest removal)

    "From the reading I've done on the subject over the years, nearly 80 percent of the money received by chain operations leaves town within 24 hours."

    That's ridiculous. Do you honestly believe that?
    Think about how that could even be possible...

    Is there an 80% profit margin? No way.

    Local employees get paid.
    Local landlords get paid.
    Local taxes get paid.
    Local adverting gets paid.
    ...and more.

    You're really trying to tell us that is all done with only 20% of the revenue? I have news for you, the grocery business does not have the luxury of such margins. Those figures are completely fallacious garbage made up to skew perception.

    as for "The Earthling Bookstore"....

    Some of us remember the whole history, not just the romanticized parts....

    The Earthling used to be on the corner of State and Victoria Streets. When the City wanted to "revitalize" downtown, they proposed to put in two anchor stores on State... one of those anchors (Bullocks) was to be on State and Victoria, where the Earthling was.

    The owners of the Earthling screamed and kicked how they were "NEVER going to move" from that location and made petitions and threw up such a fuss that the City foolishly scrapped that plan (which would have actually revitalized the entire State St. corridor) and went for the Paseo Nuevo plan instead.

    Construction of Paseo Nuevo put dozens of local businesses out of business. Some by displacement, and many more by choking them out with inaccessibility due to construction in the area.

    What does The Earthling do next? That's right, they move! They take the old Woolworth building 1 block down the street closer to the new "evil mall with all those evil big chain stores" and immediately start whining how they cannot compete... ignoring the fact that their rent is now well over $25k every month for the new store. They knew this before they moved.

    The irony? If anyone is to blame for the existence of Paseo Nuevo vs. all of State street being vitalized, it is the Earthing Bookstore, yet they are complaining now about how its very existence is somehow threatening them.... still ignoring the math of how many books one really has to sell to make payroll for several dozen employees and pay over $25k in monthly rent.

    Next it is the "big bad chain stores" that are to blame for their struggles. The landlord was patient, but they needed to be paid. The Earthling once again cried how "unfair" the high rent was and demanded special treatment. The landlord justifiably said no.

    Next thing we hear is the pitiful cries of how "The Earthling Bookstore is a vital part of the SB community, the City of Santa Barbara MUST subsidise our move to a smaller location where Cominiche's used to be on State"

    The City, completely sick of these whiners by now, said no.

    cartoonz (anonymous profile)
    February 18, 2010 at 12:52 p.m. (Suggest removal)

    More irony? All that talk of how they were "special" because they were "local" and anti chain store? Complete BS. They actually tried, and failed, to open up locations in several other cities as well during their time here. They wanted to be a chain themselves!

    Lack of their own business sense killed the Earthling, nothing else. Unfortunately, they also took a lot of other great local business because of this too.

    I liked the Earthling Bookstore. It was a fun place to go. I also was astounded at how many employees were running around at any given time and, knowing the amount of rent that needed to be paid each month, I could not fathom how many books would need to be sold to cover that nut.

    I've not been to the IV Food Co Op, so I know nothing about them. I don't think it sounds like the Eartling saga at all, but someone did drag The Earthling into these comments so that's why I addressed that.

    Hopefully, the IV Food Co Op will do whatever they need to do to adapt and survive.

    cartoonz (anonymous profile)
    February 18, 2010 at 12:52 p.m. (Suggest removal)

    As an IV resident I can honestly say that the IVFC has more going for it than the article portrays.
    My wife has been a member since she moved to IV, before we met & continues to support IVFC w/ whatever purchases she can make there.
    So w/ that said, maybe the issue isn't a IVFC vs. WF thing, it sounds more of a "how much would you like to spend?" question.
    The "organic" label does 2 things:
    a) (In it's very basic definition) It assures that the product you're getting comes from a farm, grower or whatever that uses sustainable methods. Said methods can be debated @ a later time.
    b) It assures that you're going to pay higher than normal prices for food.
    Of course, if you want "quality" then get ready to pay more, but therein lies the problem.
    The mission statement of any "organic" (I hate that term because all organic means to me is that it has a carbon molecule, something that even food that ain't 'organic" has) is to provide safe, healthy food to it's customers.
    Of course, this is done @ a price that some are willing to pay out of health concerns, store loyalty, whatever.
    In the case of WF, the prices may be a bit lower due to their being able to buy in bulkier amounts.
    In the case of IVFC you know that anything locally grown is excatly that: Locally grown.
    A question that I have here is this: What about Trader Joe's? They have a similar mission as IVFC or WF, but did all this hoopla start when they came to town?
    1 of my wife's daughters works for the Coalition of Certified organic farmers up in Santa Cruz, CA. Her job is to certify that anyone who claims to be organic is exactly that. It's a stringent process & there's little leeway.
    I'll be honest, I'm an omnivore, eat whatever is put in front of me from wherever. My immune system is strong & personally, I don't feel the need to spend more for practically the same molecular structure. That's just me. But I can say w/ all sincerity that the IVFC does do their best & is doing their best.
    This article is basically a swipe @ anything that smells of capitalism or big business, that's all. Don't believe the hype :) henry

    hank (anonymous profile)
    February 18, 2010 at 6:07 p.m. (Suggest removal)

    "Is there an 80% profit margin? No way."

    I can see that "cartoonz" has never been in business. The 80% (in this hypothetical example) would go mostly to purchasing the merchandise that the store is stocked with. It would also go to the many out of town vendors that supply all the other things a business needs to operate. Whether it's 70%, 80%, or whatever, the point is that money leaves the community and goes elsewhere.

    By contrast, a hypothetical local company that sells all locally produced merchandise would keep most of the money in the community. The math is not that hard once you understand how business works. The reality is that all businesses send money out of the community to some degree, for office supplies and electricity and other overhead costs if nothing else. And most merchants do buy at least some of their merchandise from outside the community. So there are few if any examples of absolutes on either end of the spectrum, either totally local businesses or ones that take ALL the money away. But really, folks, I'm just astonished at the level of ignorance some of these comments expose. They really should teach the basics of business in school, so that we don't have a populace that doesn't understand even simple things like the difference between sales and profits, or what overhead is, or the cost of goods sold. These are basic, non-complex concepts.

    The other thing that really stuns me is how vehemently some people will defend chain stores. It's a sign of how strongly their advertising/propaganda influences people on the deepest levels of their psyches. Now, not all big corporations are bad guys, but it's really important to understand how the corporate structure as a whole exploits us all and ruins communities. I must say that it's really painful to realize that many people, perhaps the vast majority, see nothing wrong with doing business with big chains and letting the small businesses of the community die. The invective that some of the commentators have heaped on small businesses is truly ugly, to me. Small businesses aren't perfect, and they could learn some lessons from their big competitors. But really, folks, when you talk trash about local businesses, you're slapping your neighbors in the face. And you're unwittingly doing just what the big chains want you to do: help them destroy their competition.

    Wake up, folks. Look at the vacancies on State Street and all around town. There are empty stores everywhere. I've come to call Santa Barbara the Gucci Ghost Town. It's really alarming. Heaping hatred on local business people doesn't help to ameliorate this situation. Why don't you get the chips off your shoulders and start supporting your community? Or maybe you hate Santa Barbara.

    OwenDell (anonymous profile)
    February 18, 2010 at 7:52 p.m. (Suggest removal)

    "I can see that "cartoonz" has never been in business."
    Better get your crystal ball fixed then Owen. I've been in business for 35 years. I do know a few things... However, I did misstate the 80% as profit margin, so I can see the confusion from that.

    While you are correct in the assumption that locally produced goods sold locally will certainly keep more of the money local, there are very few business' that this model can feasibly fit. Agriculture would be one of them.

    All the rest of the "local businesses" have to buy nearly all, not just "some", of their inventory from outside the region. We don't make most of the things people need to buy on a regular basis. What I am saying is that when you factor in the "local" costs like rent/personnel/local tax/net profit, you will come up with far more than the 20% that was stated to be the number that stayed around. That does make the 80% cash export figure too high.

    I'd say it would be a stretch for even the evil "chain stores" to be able to only keep 20% of the cash local, but they do tend to run at a much thinner margin with massive volume so that might be possible... but not likely unless we are talking about a Gas station or maybe Costco with lower employee costs than a full service operation might sustain

    So all but a handful of "local" business' do send a good amount of cash out of the area. I'm just saying it isn't going to average anywhere near 80%, even for the evil "chain stores".

    As for those "chain stores"... I'm a 5th generation Santa Barbara man. I remember things most people have never heard of around here. Local business' have always been my choice. The point I was making about The Earthling was that they themselves, a little local bookstore, ironically were the most responsible for the demise of more local business' than any other entity through their own selfish and shortsighted actions.

    cartoonz (anonymous profile)
    February 19, 2010 at 1:08 a.m. (Suggest removal)

    and yes, I realize that the evil "chain stores" export the net profit too.

    cartoonz (anonymous profile)
    February 19, 2010 at 1:10 a.m. (Suggest removal)

    well, i wasn't planning on commenting here, but i did want to add something really really important that was missing from this article, especially in light of these comments above. some people may not know that the co-op isn't just merely a local business, but is also owned by the community which it serves ("co-op" means cooperatively owned). being a cooperatively owned business means a whole lot of things, but first and foremost it means that not only is the business here as a resource for those who shop here -- everyone, not only our member-owners (rather than being motivated by making a profit that no one person would even keep as it would get redistributed to our 3,000+ owners in the form of discounts and a dividend), it is constantly, continuously, and 100% reinvesting into our local community through the very existence of the business. none of our shoppers' money leaves santa barbara, unless it's to pay for the goods in our store that we cannot source locally. the co-op is not a profitable business, as our operating expenses run about double of other co-ops our size (due to our high rent in our beautiful beachside isla vista location). luckily, we don't have to be terribly profitable, as there is no one person invested more than anyone else awaiting a huge payday (one of the most notable differences between cooperative and corporate ownership has to do with the structure of investment. for a co-op, one member/owner=one share=one vote.) we just have to make enough to pay our staff fairly, pay our bills, and keep the store in good condition... we have managed to accomplish this for the past 36 years. yes, our business has slowed (and to a point of concern due to recent events). yes, it would be amazing to see more people from outside isla vista joining our other long-time supporters and experiencing the magic of the iv food co-op. but no, we don't need you to save us. fortunately the community made the decision 36 years ago that the co-op would be an amazing resource, an amazing gathering space, and a mainstay of the community... and we are! i extend to everyone an invitation into our store, perhaps you'll also find a home, just as i did some years ago.

    melissananda (anonymous profile)
    February 19, 2010 at 8:44 a.m. (Suggest removal)

    IVFC and WF both rule. I think there is plenty of room for both. I hope IV residents don't take it for granted and give them their business, there are plenty of people in SB and Goleta who will keep Whole Foods going.

    loonpt (anonymous profile)
    February 19, 2010 at 11:22 a.m. (Suggest removal)

    We're discussing a larger issue, here, when we talk about buying local or buying from chain stores. "Think global, buy local" isn't just a cute bumper sticker. It means a shopper is concerned about doing what's best for the Earth and all living things, and what's best is not transporting goods from China or across the USA for purchase in our local community. It also means support your local businessperson who is trying to make a living in your/their community.
    If a local artisan is selling a product of their own making (e.g. jewelry, candles, wind chimes, belts, etc) at the Sunday market, I'll buy that rather than buy a similar product from a chain store (e.g. Macy's).
    If Isla Vista Food Coop has commited itself to the local community for 36 years and they buy their goods locally, I'll support them before I'll support a chain store that doesn't rely on the community for its sole existence.
    That's why I also shop at Chaucer's bookstore rather than the chain stores that look the same in every city.

    CharityBee (anonymous profile)
    February 19, 2010 at 5:36 p.m. (Suggest removal)

    Dear IV Co-op.

    I have been a member of the co-op. Local business depend upon local customers. There is a wealth of customers in IV. Running ads may or may not work. Advertizing only works if you are persistent and consistent. There is no such thing as one shot miracle ads. What works is to farm your own area. Handing out flyers in the neighborhood may be better that paid for ads that you have to raise money for. Why pay more?

    How come I only see white faces in the co-op. Why not bring in the large Hispanic community in the immeidate area?

    Bird (anonymous profile)
    February 19, 2010 at 11:41 p.m. (Suggest removal)

    hi bird,
    thanks for your thoughtful comment. we've been working really hard to bring in our hispanic community through many different outreach outlets. we have recently hired a full-time manager who is bilingual, and she works consistently during the day (and also happens to live within the hispanic community in isla vista). we are incredibly happy to now have a spanish-speaker on our staff who can answer questions (and we are currently starting work on a spanish-english natural food/lifestyle dictionary). we work with the neighborhood clinic as well (sponsoring their diabetes classes and hosting bilingual store tours whenever possible), and have been putting lots of effort into having a presence at the true "All community" festivals in IV that draw a presence from our hispanic community. we also are a huge resource for the IV elementary school and have presence at their latino student-parent nights (and host k/1 class tours regularly). we've actually seen a very positive response as a result of our outreach. i agree that we need to do more, and we plan to, and we are continuously happier with the increase in our shoppers from more of the community (mostly moms coming in the morning). as a side note, we've had a 1/2 page ad in our local edible magazine since the beginning, as we feel the importance of supporting this publication. this particular ad campaign was created not by the co-op but by a member-owner. we agreed to it (as a form of generating support in our community from the actual campaign) , but have been very hands-off (i completely agree with you, i feel that there are better uses of the co-ops own marketing budget). you'll see us around IV on our yellow trike handing out free produce and doing some other isla vista specific guerilla marketing (we've gotten known nationally for our marketing program). feel free to stop by the store anytime between 8-5 M-F and chat if you want to know more about what we are doing. i'd also love to hear more of you thoughts. thanks!
    ---melissa cohen
    store manager/outreach/marketing education director/ housewares & bodycare buyer

    melissananda (anonymous profile)
    February 20, 2010 at 8:25 a.m. (Suggest removal)

    I've been meaning to join the IV co-op for years. I'm in Ojai but visit my niece in Goleta often. These places are incredibly valuable to the character of a community. It's not that there is anything wrong with Whole Foods, Borders, or Barnes and Noble, it's simply a different experience to shop at a co-op or the magnificent chaos of Chaucers. It strengthens the sense of community and feeling of home. When I go to my local hardware store rather than Home Depot I'm supporting local business owners who are long term members of the community, are active in local events and causes, and often know me by name.
    It's sometimes less convenient as they don't offer as many items and sometimes costs slightly more (though often costs less), but I receive personal service, knowledge, can order special products, and actually find someone to assist me when necessary.
    It's easy to forget about local small businesses when a large, new, glamorous store opens, but that is a mistake in the long run and leads to a flavorless, homogenous society, devoid of local character and flavor.
    I will join the I.V. Co-op this coming week.

    bobsorel (anonymous profile)
    February 20, 2010 at 11:23 a.m. (Suggest removal)

    I don't even see how this is a story.

    Isn't Whole Foods the same store this same paper was trumpeting when they came to town and created all those jobs?

    I don't hear the Co-op complaining, so why is this paper?

    The Indy has flashs of brillance tempered with splashes of spilled bong water..

    bronc (anonymous profile)
    February 22, 2010 at 1:41 p.m. (Suggest removal)

    How is this a story? The comments are longer than the story itself, so i guess there was 'food for thought' here, right?

    The ad campaign does not seem to be the end all, be all...please consider this. Look at the free publicity that this small Indy article has generated by all of us commenting on it, and the story didn't even make it to print! Look at those above who have said they will now become a member of the Co-Op.

    As for Co-op marketing approaches, there are many other things that can be done that might reach a larger audience beyond the 'typical' Co-op supporter. Expanding your approach (not necessarily your efforts) to reach a larger audience could have real and significant impacts.

    And finally, i agree with the statement about people being so aggro in their comments defending chain stores and criticizing those who would rather support local bizz. Chill, people. To each their own. Try to have respectful dialogue. We all live here and love it, so try and get along.

    sbstylee (anonymous profile)
    February 23, 2010 at 9:44 a.m. (Suggest removal)

    I think that the IV Co-Op is one of Isla Vista's little known treasures. It's a great place to shop for healthy food, as is Whole Foods, Trader Joe's and the local farmer's markets. The SB community seems to be able to support all of these local ways to eat healthy and I'm proud to be part of such a community.

    nginther (anonymous profile)
    April 12, 2010 at 11:14 p.m. (Suggest removal)

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