Best practice: Coop Crowdfunding

(Back to the Swedish version of this business case)

TYPE OF CASE/THEME

Business models, local food production, crowdfunding, food retailers.

INITIATIVE IN SHORT

Coop Crowdfunding is a digital platform offering consumers the possibility to buy locally produced food via an online shop. Consumers can invest directly in businesses or support producers through micro-loans. The platform enables small enterprises to widen and interact directly with their customer base.

IN WHAT WAY A BEST PRACTICE?

A good example of how small-scale producers can access financial resources and reach a wider group of customers with the aid of food retailers.

BACKGROUND

The project is owned by Coop Denmark and was launched in 2017. Coop Denmark has 1.8 million members and their surveys revealed an interest in supporting local food producers. Since innovative, small-scale producers often struggle to attract capital – and Danes save money in the bank at practically no interest – the concept of Coop Crowdfunding was born.

HOW DOES IT WORK?

Via Coop Crowdfunding consumers can support local food production in three different ways.

1. They can buy food directly online.
2. They can invest directly in producers and secure their share of e.g. seasonal products or goods with a limited availability.
3. They can support producers through crowdfunding.

The platform enables small enterprises to widen their reach and interact directly with a larger customer base. Coop Crowdfunding mainly attracts start-ups and small-scale rural producers that want to develop new products, services or invest in new equipment. Launching an investment campaign is also a way for them to test ideas, reach out to customers and strengthen their brand. For the consumers it is a way of influencing the local food market and to receive a higher interest on their investment than banks normally offer. For the parent company, Coop Denmark, the platform confirms its position as a pioneer brand in the food sector. Coop Denmark also supports the initiative financially, but the long-term aim is that it will carry its own costs through the fees that are charged for using the platform.

MORE READING

Find information in Danish on the Coop Crowdfunding website.

Find information in English on the Rubizmo website.

CONTACT

Nicolai Jaepelt, manager of Coop Crowdfunding. Send e-mail to Nicolai Jaepelt.

LINK TO EVENT FROM SEPTEMBER 9^th

Here you can watch the recording from the seminar about Coop Crowdfunding that we arranged on 9 September. In addition to Nicolai Jæpelt, who is project manager for Coop Crowdfunding in Denmark, participants are also Marianne Duijm from the company Casju which is a good example of successful crowdfunding.

AN INITIATIVE FROM PROJECT MATLUST'S TRANSNATIONAL COMPONENT

MatLust is an EU project with the purpose of strengthening growth and sustainability within the food industry in the Stockholm region. In MatLust’s transnational component we are looking for best practice and good examples in the Baltic Sea region. Areas of interest are sustainable business models for SME in the food sector, innovative applications of public procurement and Hazard analysis and critical control points (HACCP) and initiatives for more resilient food systems. Good examples are documented and spread via MatLust's website and events.