Myth Busting

Learn About Co-ops

  • Myth Busting: Get the Facts About Co-ops

    We’re here to clear up misconceptions and showcase some of the amazing co-ops in our state!

    We're starting by featuring Alaska Beauty’s delicious peony tea bags, elegantly packaged in a beautiful envelope. Known for their stunning summer peonies, Alaska Beauty also offers a fantastic line of peony-inspired products year-round.

  • Myth: Co-ops only operate in agriculture

    Co-ops come in many forms, extending far beyond agriculture. From food co-ops, where customers own and operate grocery stores, to shared services co-ops, where businesses pool resources, the cooperative model is incredibly diverse.

    Take Island Artists Gallery in Sitka, for example. Founded in 2013 by a group of passionate artists, the co-op was born out of a shared commitment to inspire and support one another. Through synergy, creativity, and hard work, the gallery has grown into a thriving space where 24 talented artists now showcase their work in a beautiful downtown location.

    If you’re in Sitka, visit them at and explore stunning creations from local artists!

  • Myth: All co-ops are non-profits

    Not all co-ops are non-profits! While some, like electric and telecom co-ops, operate as non-profits, many co-ops are for-profit businesses owned by their members. The main distinction is that co-ops prioritize meeting the needs of their members rather than maximizing profits for outside investors. This unique structure allows co-ops to focus on delivering value directly to their community of owners.

  • Myth: Co-ops Fail More Often Than Traditional Businesses

    Co-ops actually have similar, or even better, success rates compared to traditional businesses. While only half of traditional businesses survive their first five years, 60% of co-ops thrive beyond that point. The trend holds steady at the 10-year mark as well, thanks to the cooperative principles that foster collaboration and sustainability.

    Take, for example, the Juneau Artists Gallery, a co-op owned and operated by 19 local artists. Since opening in 1985, the gallery has grown from a seasonal operation to a year-round destination, offering artists a dedicated space to showcase and sell their work. Each artist manages their own displays and plays an active role in running the gallery. Whether you’re visiting in person or shopping online, it's hard to leave without a unique piece of art!

  • Myth: Co-ops don’t work in Alaska

    Co-ops thrive in Alaska! From rural communities to bustling towns, co-ops like Kodiak Harvest Food Coop are proof that member-owned businesses succeed even in challenging environments.

    Today, we’re featuring Kodiak Harvest’s very own canned salmon, perfect for making delicious salmon patties! You can purchase it online, or visit their store for fresh food, and a fantastic selection of local products and produce. Support your local co-ops and experience the best of Alaska!

  • Myth: Converting to a co-op will save a failing business

    Converting an unviable business into a co-op won’t save it if the business model isn’t sound. However, co-ops can support businesses by focusing on maximizing member benefits rather than just profits. While they must cover costs, co-ops prioritize providing value to their members.

    For example, producer co-ops like the Alaska Peony Cooperative offer farmers classes and workshops on growing, harvesting, and preserving premium peonies. By centralizing marketing and sales, they help members share costs, making these essential services more affordable.

    Alaska Peony Cooperative is one of the most stunning producers of peonies in Alaska. These beautiful blooms are available during July and August and can be purchased online. The co-op also offers valuable resources year-round, including the "Passionate for Peonies" guide, available for download.

  • Myth: Co-ops can’t innovate or scale

    Co-ops are not only innovative, but they can also scale to serve larger communities!

    The Sitka Food Co-op is a perfect example of this. Starting as a small venture, it now serves over 250 households and businesses, and they’ve even opened their own store! Be sure to check out their fantastic selection of local and organic products.

  • Myth: Co-ops exist solely to serve underserved communities

    Co-ops can help address needs in underserved communities, but they’re an effective development tool in other places too! Cooperatives bring people together to build wealth and solve community challenges by offering services and products that might not otherwise be available.

    Co-op Market Grocery & Deli is a natural foods cooperative serving Fairbanks and the Interior. As Alaska's first retail food co-op, it has over 4,800 invested Owners and counting!

  • Myth: Only co-op members can use the services or goods provided by the cooperative.

    False! While co-ops prioritize their member-owners, many allow non-members to shop and access services too!

    In Homer, anyone can enjoy delicious oysters at the Shellfish Growers Co-op, grab some to take home, and even pick up a beautiful bouquet of peonies from Alaska Beauty.

  • Myth: Co-ops are difficult to run due to shared ownership

    This is false! Co-ops thrive on collaboration and democratic decision-making, allowing members to have a real say in how the business is run. Shared ownership empowers members to contribute their skills and ideas, making co-ops more adaptable and responsive to their communities.

    Ptarmigan Arts in Homer, Alaska, is a perfect example of how a cooperative can succeed. Since 1984, this member-owned gallery has showcased a wide range of local art, including pottery, jewelry, woodworking, and more. Not only do the artists create and sell their work, but they also staff the gallery, providing customers with expert insight into the pieces.

    Visit Ptarmigan Arts at 471 Pioneer Avenue in downtown Homer and see how co-ops make it happen!

  • Myth: Co-ops are outdated and not relevant today

    Co-ops are thriving, innovative, and deeply relevant in today’s world! Take the Oomingmak Musk Ox Producer’s Co-Operative for example: Native Alaskan members pay a yearly membership fee, which gives them access to Qiviut yarn and exclusive Co-op patterns. All they need are their knitting needles!

    Members knit at their own pace, and when they send their finished items to the Co-op’s headquarters in Anchorage, they receive payment the very next day. For members in remote Alaskan villages, where jobs are scarce and costs of living are high, this income is crucial for everyday expenses like electricity and heat.

    The co-op also distributes profits to members as a dividend based on their knitting, giving them a real stake in the success of the business. This shows that co-ops not only provide valuable services but also empower their members economically!

  • Myth: Joining a co-op is expensive

    Joining a co-op is often affordable and offers valuable benefits! Take the Valdez Art Co-op, a collective of local Alaskan artists who are promoting, creating, and selling stunning art pieces. From acrylic paintings and pottery to furniture restoration and fabric art, this co-op showcases the creativity and craftsmanship of its talented members. The artists themselves staff the gallery, offering a personal touch to every visit, and even provide art classes!

    For many, it’s the realization of a lifelong dream to display and sell their art in a welcoming space. Another great example is the Captain Cook Art Co-op, where 10 member-artists run and operate the store themselves.

    Co-ops are not just relevant—they’re empowering artists, building communities, and fostering creativity in Alaska and beyond!

  • Myth: Co-ops are only for small or local businesses

    Think co-ops are just small, local businesses? Think again! Some of the most recognizable and successful companies are cooperatives, operating on a global scale.

    Tillamook: Known for its delicious cheese and ice cream, this co-op has become a household favorite.

    Ace Hardware & True Value: Thousands of hardware stores nationwide, all locally owned by entrepreneurs.

    Welch’s: The iconic brand behind your favorite grape juice and jams, owned by farmers.

    REI: Experts in outdoor gear and adventure, with millions of members who own the co-op.

    Blue Diamond: The world's leading supplier of almonds, proudly farmer-owned.

    Land O'Lakes: A dairy cooperative that brings you butter and other top-quality dairy products.

    Global Credit Unions: Trusted financial institutions, serving millions of members worldwide.

    Co-ops aren’t just small-time — they’re global powerhouses making a significant impact