3c hapter - Index of

212 Locavesting
Schmid would love to see Proffi tt’s LanX plans come to fruition.
He says he would probably sell shares or bonds through a direct, instate
offering, and list on the exchange. “That would require us to
disclose more, but if you’re a company with integrity, that’s not an
issue. There’s nothing I love more than talking about my company.
Can an investor call up Cisco and talk to John Chambers? I think
there’s actually less risk involved by being able to invest in a brand
that you know. And you always can call up Mike Schmid and talk.”
The idea of a local exchange also appeals to Terry Brett, president
of Kimberton Whole Foods. Started in 1986, the company
has grown from one store in Kimberton to fi ve in eastern
Pennsylvania, with more than $10 million in annual sales. Today
it is the largest- volume independent natural food retailer in the
state. The stores, with their mix of local, organic, and biodynamic
products and their community- centered events, are beloved by
locals, as a quick glance online reveals.
“Way better than the now ‘commercialized’ other ‘Whole
Foods.’ I’m able to buy more Local items and the service is friendlier!”
writes one reviewer on Yelp.com.
“Hands down the best natural foods store in the area,” raves
another.
Kimberton Whole Foods’ 84 employees receive full dental, disability,
and health- care coverage, as well as profi t sharing through
a 401K plan. The company was named a “top workplace of 2010”
by the Philadelphia Inquirer, Philadelphia Daily News, and Philly.com.
Still, that’s not enough to keep Brett from worrying about
competition from large- scale national chains that have already
gobbled up many of the early independent retailers. In retailing,
size counts. Suppliers and distributors favor big volume buyers.
So in November, Brett gathered some of the remaining independent
natural food retailers to discuss ways that they could work
together to preserve their independence and fend off advances
by national chains and deep- pocketed private equity fi rms, like
one that recently approached him declaring that “locally owned”
stores were the wave of the future. One idea is to form a sort of
virtual chain akin to a buyers’ cooperative, that would let the independents
pool their purchasing for added clout with distributors.