Organically Grown adopts “trust” ownership model to avoid corporate takeover
Published: August 3, 2018
Category: Organic News, The Organic & Non-GMO Report Newsletter
“The Purpose Trust provides a new model for the social enterprise sector, which is hungry for alternative ownership structures,” said Kate Danaher, senior director with RSF Social Finance that financed the conversion.
The Sustainable Food and Agriculture Perpetual Purpose Trust removes the pressure to maximize short-term quarterly profits and shareholder exit-values, instead maximizing “purpose.” Long-term returns will be shared by evergreen investors and stakeholders, including farmers, coworkers, and customers. This enables OGC to avoid the fate of many organic companies that get bought out by large corporations—such as Honest Tea, Annie’s Homegrown, and Kashi—putting pressure on quarterly returns rather than mission.
Organically Grown Company, a top organic produce distributor, moved over 100 million pounds across the Pacific Northwest region last year. OGC composts or recycles 96 percent of its waste.
The trust is designed to last permanently; it could only be sold if its mission was at stake.
Sources: The Fern
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