CIC FAQs

WHAT IS THE COMMUNITY INVESTMENT CAMPAIGN? 

Hudson Grocery Co-op’s Community Investment Campaign is a capital campaign.  Capital in the business world is property or assets, something that is owned. A capital campaign is an effort by an organization to raise significant dollars in a specified period of time to fund a one-time need. 

We ran our first Community Investment Campaign from October, 2023 through March, 2024. This campaign allowed us to purchase Fresh and Natural Foods, increase our inventory, and make many improvements in store.

We launched our current campaign in the Fall of 2025 with the goal to raise the funds necessary to update our lighting and to replace aging equipment in the Deli and Meat Departments. While we did not reach our goal last fall, it was critical that we replace much of that equipment as it was at risk of failure. To complete the project, we took out outside loans. 

Our current project aims to raise funds to improve our current cash on hand and pay down debt. Our goal is to raise a total of $220,000, we have raised $35,000 to date as a combination of grants, donation, owner loans, and preferred stock purchases. 

WHY ARE WE CONDUCTING A CAPITAL CAMPAIGN?

Co-ops, because of their unique legal structure, have the ability to raise capital from owners through loans, preferred share sales, and donations. Capital raised from owners is cheaper than bank financing, more flexible, and allows owners the opportunity to exercise the cooperative principle of Economic Participation. It also allows us to keep our funds local. By paying Owners interest and dividends instead of a bank we are keeping our money right here in our community. Hudson Grocery Co-op owners have the opportunity to make a loan, purchase preferred shares, or make a charitable gift. 

I SHOP IN THE STORE, ISN’T THAT ENOUGH?

Shopping in the store is one of the best ways you can support the co-op! We appreciate each of you making the choice to come to our store for your purchases whenever you can. 

Unfortunately, our store faced a number of hurdles this year that have put increased pressure on our balance sheet. 

We have faced product cost increases and fuel surcharges on thousands of items this year. We held off on price increases as long as possible, but when it became obvious that the current cost increases were permanent we were forced to raise prices. 

Additionally, the construction outside of the store this summer caused sales to drop by $10,000 - $15,000 a week for almost two months. Sales are beginning to stabilize back to normal levels, but we cannot make up for that large of a sales drop just through weekly shopping trips.  

We are not a corporate store and do not have large reserves set aside to help mitigate these challenges. 

WHY DID WE COMPLETE THE DELI REMODEL AND THE LIGHTING UPDATE IF WE DIDN’T RAISE THE FUNDS?

Much of the updates were completed because the equipment was old, inefficient, and causing a financial drain. One of the coolers had a freon leak and needed to be charged, the coolers did not maintain a consistent temperature, and we were seeing an increased amount of food spoilage which meant we were throwing away excessive amounts of product every week.  We partnered with the Focus on Energy program, the updates are projected to pay for themselves by the electric bill savings alone in ten years. We have additional profit improvements due to reducing food spoilage, freon savings, and the ability to increase sales by displaying more items. Several pieces of equipment were at risk of failure and needed to be replaced before they failed completely. A failure would have meant the risk of losing all of our inventory in a cooler overnight and then being without a place to keep product for months while we waited for a replacement. 

When we completed the project, we worked with Xcel and the Focus on Energy program to maximize the rebates we were eligible for through the project. We received a total of $22,916 in rebates in support of this project. 

ISN’T MY OWNERSHIP ENOUGH?

Your Ownership is the terrific first step that gives you the right to vote for Board members and to run for the Board, giving you input into how the store is governed. And now, as an Owner, you have another exclusive opportunity: to invest further in your store, in your community, and in your values, with the potential to earn a fair rate of return. Owner Loans and Preferred Shares are long-standing mechanisms used by grocery co-ops across the country to raise the money needed to open a store. Loans and Preferred Shares demonstrate a loyal customer base and reduce debt service, making the co-op stronger. Donations to the co-op further strengthen our financial position because they do not require interest or dividend payments.

HOW MUCH FUNDING IS NEEDED?

$185,000 is more needed to reach our goal of raising $220,000. 

HOW WILL THE MONEY BE USED?

Investments and donations will be used to increase the co-op’s amount of cash on hand and to help pay down debt that was taken out to complete the projects. Please email us at invest@hudsongrocery.coop to request a copy. 

IF I SUPPORT THE CAMPAIGN, WHAT ARE MY OPTIONS?

Co-op owners have the opportunity to purchase preferred shares, make an interest-earning loan to the co-op or a donation. The opportunity to purchase preferred shares or make an interest-earning loan to the co-op is available to co-op owners who reside in Wisconsin or Minnesota. The opportunity to make a donation is available to anyone, whether they are an owner or not.

PREFERRED SHARES: Co-op owners can purchase non-voting preferred shares in increments of $500.  Preferred shares earn a guaranteed dividend of 2.5% per year and may earn dividends of up to 5%.  Please see our Investor Packet for full details.

LOANS: Co-op owners can make a 15 year loan starting at $10,000 to the co-op and earn an annual return of up to 5%. Please see our Investor Packet for full details and available interest rates categories and payback schedules.

DONATIONS: Donations can also be made directly to HGC on our website or via Paypal or Veno. 

Eligible owners have the opportunity to purchase preferred shares AND make a loan. 

 The option to purchase preferred shares, make a loan, or give a donation allows every owner the opportunity to participate in a meaningful way!

WHAT IS THE BEST WAY TO HELP THE CO-OP?

Purchase Preferred Shares, then, if you can invest more, consider a loan in addition to your shares. Selecting low or zero interest on your loan is also extremely beneficial to the co-op. Optionally, a donation skips the paperwork and is another great way to support the co-op. 

WHAT ARE THE RISKS OF INVESTING IN HUDSON GROCERY CO-OP?

 As with any investment in a business, there are risks to your investment and you are required to read our investment documents before investing. Please email us at invest@hudsongrocery.coopto request a copy.

 HOW DO I MAKE AN INVESTMENT IN THE CAPITAL CAMPAIGN?

Once you have read the investment documents, please complete a pledge form.  Email us at invest@hudsongrocery.coop if you have any questions. 

CAN A BUSINESS MAKE A LOAN OR A DONATION?

Businesses who own shares in the co-op can make a loan in the name of the business. 

WHAT IS THE DEADLINE FOR MAKING A LOAN OR A DONATION?

The campaign will wrap up on December 31, 2026. 

AT THE OCTOBER OWNER’S MEETING WILL THERE BE AN OPPORTUNITY FOR COMMENTS/QUESTIONS?

Yes, the Owner’s Meeting on October 20, 2026  will be an important opportunity to share updates, answer questions, and hear from our owners. More details about the meeting format and opportunities for questions and discussion will be shared as we get closer to the meeting.

WHAT IS A PREFERRED SHARE?

Preferred Shares are non-voting stock that could yield annual dividends. Any Owner who lives in Wisconsin or Minnesota can participate and buy Preferred Shares at $500 per share. Outside of donations, Preferred Shares are the most co-op friendly way to invest, because they show up as equity (not debt) on the co-op's financial statement. They should be considered a long-term investment (15+ years). They can yield annual dividends but like most stock investments, there is risk and no guarantees. 

WHAT ARE PREFERRED SHARE DIVIDENDS?

Dividend distributions on the Preferred Shares will be made at the Board’s sole discretion. Shares have a target dividend rate of 2.5% to 5.0%. However, in any given year the Board, in its discretion, may choose not to distribute a dividend, based on the financial performance of the co-op that year. 

CAN I SELL MY PREFERRED SHARES?

The Shares may not be sold to third parties. Instead, they may only be sold back to the co-op, subject to the Board’s approval. The co-op does not plan to redeem Shares before it becomes profitable and all loans are repaid. Preferred Shares are a long-term investment.

HOW DO I PAY FOR MY SHARES?

 When you make a pledge to purchase preferred shares you’ll receive legal documents to complete and sign. Once those documents are signed you’ll receive an email invoice. Using that invoice you can mail your referencing the invoice number. Once we receive funds, you’ll receive a Notice of Shares certificate. 

 

WHAT ARE OWNER LOANS? 

In short, owner loans are the co-op borrowing money from YOU (our owners) instead of borrowing money from the bank. Loans are a 15-year investment with interest rates up to 5% based on the amount of the loan. Loans are available only to Hudson Grocery Co-op Owners living in Wisconsin or Minnesota who want to make a large investment, $10,000.00 or more. Loan interest payments begin in year 6 of the loan and principal plus interest payments begin in year 11 of the loan.

WHAT ARE THE BASIC LOAN TERMS?

The opportunity to make an interest-earning loan to the co-op is available to co-op owners who reside in Wisconsin or Minnesota. The following are selected highlights of the loan terms. Please see our Investor Packet for a sample loan agreement containing the full loan terms. Please email us at invest@hudsongrocery.coop to request a copy.

• The minimum loan amount is $10,000. There is no maximum. We encourage investments rounded to $1,000 increments.
• Loans to Hudson Grocery Co-op carry a 15 year term meaning that we intend to fully repay the loan by year 15. Simple interest will accrue for the first 5 years of the loan. In year six all accumulated interest will be repaid. In years 7-10 interest will be paid annually. In years 11-15 interest plus 20% of the principal amount will be paid each year, with the loan being fully repaid in year 15.

WHAT ARE THE INTEREST RATES ON THE LOANS?

Interest rates range from 0-5%, based on the size of the loan. Some owners may choose to lend at 0% interest rate, which results in significant cost savings for the co-op!

Loan Amount

Interest Rate Selected by Investor

$10,000 - $19,999

0% to 4.0%

$20,000 - $49,999

0% to 4.5%

$50,000+

0% to 5.0%

HOW IS LOAN INTEREST ACCRUED?

Simple interest based on the amount of your loan accrues on the principal amount from the date the funds are made available to the cooperative.

CAN I GET MY LOAN REPAYMENT BEFORE THE LOAN IS DUE?

You should not expect to get the money back early. You can contact the Board if you have extreme circumstances. Any early return is at the Board’s discretion.

IS MY MONEY SAFE IF I CHOOSE TO LEND IT TO THE CO-OP?

As with any loan, there are risks to lending to the Hudson Grocery Co-op. It is important that you read the Investor Packet and understand the risks involved with a loan.

Nationally, a food co-op’s success rate after five years is 79%. (This compares with a typical retail success rate of 47% after five years.) The Hudson Grocery Co-op Board of Directors has studied the factors that contribute to co-op success and sought the advice of legal and industry experts to help limit risk. It’s always a good idea to consult your financial planner or accountant before investing.

WHAT LEGAL ASSURANCES HAVE BEEN PUT IN PLACE FOR MY LOAN?

Owner loans are legal in the states of Wisconsin and Minnesota. We have contracted with an attorney specializing in co-op law to prepare the loan paperwork.

IF I MOVE, WHAT HAPPENS TO MY LOAN?

No problem. As long as your primary residency is in Wisconsin or Minnesota when the loan is made and you provide the co-op with your updated address, we will continue to communicate with you at your new home making sure you get up-to-date information about your loan after your move.

WHAT HAPPENS IF I PASS AWAY, WHO WILL RECEIVE THE REPAYMENT OF MY LOAN?

We encourage you to keep loan documents with your estate so your family members are aware of the loan. We encourage you to consult with your estate planning adviser. A successor to the lender may assume the rights and obligations of the lender through the ordinary settlement of the lender’s estate.

OK, THIS ALL SOUNDS GREAT--HOW DO I MAKE A LOAN TO THE CO-OP?

First, read the Investor Packet carefully. It contains a sample of the loan agreement that you and the co-op will sign electronically. It contains a sample of the promissory note the co-op will sign. It also contains our required disclosures of the risks of this investment and financial projections. After reviewing, submit your pledge online, contact email invest@hudsongrocery.coop and one of our friendly volunteers will confirm details for your loan agreement (your name, co-signer if desired, and rate amount). We will then prepare your customized loan agreement and send that to you for your signature via an electronic form.

CAN I FUND MY LOAN VIA CREDIT CARD?

No, you cannot fund your loan with a credit card. Personal checks, cashier checks, and money orders are all great options for loaning the co-op money.

I DON’T HAVE THE MINIMUM INVESTMENT AMOUNT FOR A PREFERRED SHARE PURCHASE OR A LOAN AND WANT TO HELP!

You can make a donation in any amount to Hudson Grocery Co-op. 

HOW CAN I MAKE A DONATION?

You can make a donation in store by purchasing a leaf to fill our tree. Donations can be made in a variety of amounts and can by done via your leaf purchase at the cashier. We would love for you to put your name or reason for donating to the co-op on the leaf so we can see the full support of our donors and community. 

If you would like to donate electronically, please see our Pledge Form for options. As a co-op, we are not a certified 501c3 organization and donations are not tax deductible. Donations can be made via Paypal or Venmo, please contact us at invest@hudsongrocery.coop.

IF I MAKE A DONATION PLEDGE, WHEN IS IT DUE?

We ask that you submit your donation within five business days after you make your pledge.  If you need more time please contact us at invest@hudsongrocery.coop.

TELL ME MORE ABOUT THE STORE.

The co-op is a full-service cooperative grocery store and serves the greater St. Croix Valley. 

The store is stocked with healthy and sustainable items, emphasizing locally sourced produce and goods. The co-op offers fresh vegetables and fruits, bulk goods, meats, household products, wellness products, frozen foods, and grab-n-go items. Our goal from the beginning was to build a conscious and nurturing marketplace, and cultivate a sustainable community through goods, education, and outreach. 

Our current project is focused on improving the store’s cash on hand and paying down debt. The investments today will help support the co-op as we faced several unanticipated challenges this year.

HOW IS A CO-OP DIFFERENT THAN OTHER GROCERY STORES?

This business model not only supports the local economy—one of the Co-op market’s core values—from the jobs created to the local farmers who can expand operations. Your dollars will stay right here in the St. Croix Valley—something to feel GOOD about! 

Your Hudson Grocery Co-op will:

STRENGTHEN THE LOCAL ECONOMY - For every $1000 spent at a co-op, $1604 is generated in the local economy.

SUPPORT ST CROIX VALLEY PRODUCERS - On average, food co-ops purchase from 51 local farms and 106 local producers.

CHAMPION SUSTAINABILITY - Co-ops are great for the planet — co-ops recycle 74% of food waste, 81% of plastics, and 96% of cardboard.

CULTIVATE HEALTHY FAMILIES - In addition to an emphasis on local, food coops feature healthy, safe foods for you and your family.

IF I’M NOT A MEMBER-OWNER, CAN I SHOP THERE?

Yes! Those who are not Hudson Grocery Co-op owners can still shop the fresh, local produce, prepared food, wellness products, and other items that are offered at the co-op. You might consider becoming an owner and enjoy the many benefits of being an owner including access to member only-sales and profit sharing dividends

SO WHAT ARE THE BENEFITS OF BEING AN OWNER?

The Hudson Grocery Co-op is owned collectively by owners who elect a board of directors to represent their interests. Therefore, members have a voice in the operations of the store, the products it carries, and the way the store is run. As an owner, you may receive patronage dividends when the Co-op makes a profit. With its focus on community, the co-op supports educational programs and community events, thereby increasing the overall demand for local, healthy, organic, sustainable foods and other grocery products. As a co-op owner, you will have access to exclusive specials or discounts on certain products or services. 

HOW CAN I BECOME AN OWNER?

Becoming an owner is easy! It’s a one-time investment of $80. 

Visit our website and become an owner today!  You may also print an application and mail it to us with your payment or sign up at a register in store. 

HOW ELSE CAN I HELP TO MAKE THIS CAMPAIGN A SUCCESS?

Thanks for asking! There are a number of ways that you can help:

1. Encourage your friends, co-workers, and neighbors to join the co-op!

2. Buy gift ownership shares for friends and family.

3. Like and share our social media posts.

4. Shop at Hudson Grocery Co-op, to continue to be an active owner and participate in our community-owned store.