There is no hiding that local small businesses are at the top of the list when it comes to who is struggling the most to navigate supply chain bottlenecks, labor shortages, and the impact of tariff increases. In today’s economic climate, the ability for businesses to be agile is paramount to their success.
A cooperative business model has long been a way for small businesses to pull together and leverage their collective strengths in order to stay competitive, keep more of their hard-earned dollar, and pivot quickly.
Valley has been a cooperative since it was first founded in 1949 by a group of bakers that was feeling pressure from their customers to keep prices low but were struggling to purchase ingredients in high enough volumes on their own that would allow them to do this. But by pulling together to develop what today is known as Valley Cooperative Association, they were able to combine their resources, purchase ingredients in bulk together, redistribute amongst themselves, and keep their customers happy and, more importantly, their business doors open.
We recently saw an amazing example of the cooperative business model in action here at Valley. Here is a snapshot of the case study that proves how leveraging collective strengths allowed a local business to remain flexible and hit tight deadlines.
High Volume Seasonal Cream Puff Production
In Wisconsin, many local bakeries and grocery stores jump on the hype and success of the Wisconsin State Fair Cream Puff by making their own and filling their bakery cases for the 11 days that the State Fair runs. The sheer number of cream puffs sold in the state of Wisconsin, whether at the fairgrounds or elsewhere throughout the state during late July to early August, is enough to give you carpal tunnel just thinking about piping that much cream into 100’s of thousands of puff pastry shells.
And while the record sales of cream puffs during the State Fair are enough to make any bakery or grocery store jump on this trend, the ability to keep day-to-day operations moving while taking on a once-a-year seasonal high-volume production is a struggle, as it adds strain to the small business owner and their staff.
A member of our cooperative who makes and sells upwards of 12,000 cream puffs each year as a seasonal offering during the State Fair especially felt this strain heading into the 2025 season.
In order to meet demand each year, they pull staff out of their various locations, leading to some of their stores being short-staffed during production over four days. Furthermore, their facility is not built with high volume production in mind, which leads to inefficiencies and added costs, thus reducing their profitability.
When Valley learned of this struggle, we felt compelled to help them navigate a solution. Together, we collaborated on an improved process by pulling in our cake room production team, their equipment, and even looped in our warehouse staff to handle storage of the cream puffs to ensure ultimate freshness and fully alleviate the stress this seasonal product puts on their business.
The result?
This local business was able to produce the same quality cream puff from scratch that their customer has come to know and love in half the time which saved them money on production and kept more of their hard-earned dollars in their pocket.
Collective strength in action!
Takeaway
Times are tough for the small business owner. Supply chain issues that seem never-ending, tariffs resulting in increased costs, and labor shortage issues that add stress and strain – the struggle is real.
But the cooperative model has proven to be a successful way for businesses to come together, leverage their collective strengths, and stay competitive during tough times.
Want to know more about being a member of Valley? Click here!
