After nearly a decade of grassroots efforts, SunCoast Market Co-op is close to opening San Diego County’s second co-op grocer. 

SunCoast has secured $3.6 million from government grants, nonprofit funding, donations and equity from 1,370 owners to open the store in Imperial Beach. It still needs to raise an additional $300,000 before it can open, potentially this fall, in a city that currently has a small Mexican food market and a discount grocery store.

“We were a group of residents frustrated by the lack of healthy food options and grocery store options in our community,” said Kim Rivero Frink, SunCoast current board president, founding board member and owner. “Trader Joe’s and Sprouts weren’t coming to our community. We realized the only way to get the kind of store we wanted was to open it ourselves.”

The local landscape is suited for a co-op grocer. San Diego County had the second most number of farms that are between one and nine acres in the country, according to the U.S. Department of Agriculture’s National Agricultural Statistics Service, which released its 2022 census data last year. San Diego County had 2,760 small farms vs. nearly 3,300 in Apache County in Arizona. In both counties, the median farm size was five acres.

For small farmers, co-op grocers can be more reliable retail outlets vs. farmers markets and subscription farm boxes. SunCoast hopes to carry produce from 40 to 50 local farms throughout the year. 

“We want to support local farms,” Frink said. “We want to support our local economy. That’s all part of the model of food co-ops.”

Big picture 

Last year, SunCoast was accepted into the National Co+op Grocers, whose members operate 241 stores owned by 1.3 million U.S. residents in 39 states with combined annual sales of $2.8 billion.

“It was a big win for us to get accepted because they don’t accept very many startups,” Frink said. “They’re excited about what we’re doing.” The store is opening in a neighborhood where the majority are Hispanics, explained Frink, who is third-generation Mexican American. 

Frink likes that NCG, founded in 1999, provides its 167 members like SunCoast with merchandising expertise, marketing support and buying power to help co-op grocers offer shoppers better pricing. 

Based on NCG member count, Washington has the most co-op grocers at 28, followed by Minnesota with 26. Currently, Wisconsin and California are tied for third at 16. 

San Diego County is also home to another NCG member: Ocean Beach People’s Food Co-op, which started its business in 1971 during a surge of co-op grocer openings that coincided with a rise in consumers’ appetite for organic foods. Ocean Beach People’s reported 2024 revenue of $11.2 million and closed last year with a net loss of about $120,000.

Frink, who projects $2.7 million in first-year sales for SunCoast, said: “We want to be profitable. But that’s not our main goal. We exist to serve our members and the community.” 

According to NCG, its members last year saw same-store sales grow 4.7% vs. less than 3% for the overall U.S. retail food market. NCG credits food co-ops’ community ownership model and commitment to building local supply chains among the factors contributing to their success.

Farmers

Luis De La Rosa, a small farmer in Bonita, said SunCoast would like to carry its produce. De La Rosa grows ngo gai, bok choy, coffee, bell peppers, tomatoes, basil, mint, dill and microgreens on one of five acres called Living for Today. 

At SunCoast’s suggestion, De La Rosa said he’s in weekly talks with other local farmers to craft a strategy to “provide more to SunCoast without over producing a single item and having more of a crop on demand to support their needs.”

Kevin Marshall — who grows vegetables such as onions, beans, corn and squash on 2.8 acres at the South Bay Community Farm in the Tijuana River Valley — agrees that one of the challenges of farming is getting demand to match supply.

“The hardest part about being a small farmer is finding buyers for the food we grow,” said Marshall, who added that he donates what’s unsold. “SunCoast co-op is another outlet to get our produce out with more consistency in sales.” 

Alyssa Brodsky, a small farmer in Bonita and La Mesa, is also excited about the co-op grocer.

The “store will be an important part of our diversification strategy,” said Brodsky of Ranchito Milkyway, whose specialty winter crop is sugar snap peas. “SunCoast will be able to buy in wholesale quantities, allowing us to ramp up production on our most profitable crops for SunCoast.”

Store details

Construction for SunCoast is nearly complete and most of the equipment has been purchased. Lack of funds and other delays pushed back the opening date, which was originally slated for last year. 

In 2022, after losing a lease deal to Raising Cane’s, SunCoast signed a multi-year lease on a 6,200-square-foot building. About 3,500 square feet of that is dedicated for the store.

Last December, SunCoast launched a $1K club to raise $100,000 with 100 supporters who pledge to donate or raise at least $1,000. It’s rounded up 25 supporters so far. 

This year, it hosted its first owners potluck complete with line-dancing lessons to seek input on specific local items they want to buy for the bulk department. 

Besides having a voice on store inventory, owners who pay $200 also get to run for the board, to vote for board members, get a 10% discount every quarter on one of their shopping trips, weekly owner coupons and rebates when the store is profitable.  

SunCoast plans to hire 30 employees for its full-service grocer that will offer produce, dairy, meat, seafood, frozen and packaged goods. There will be a seating area with tables and chairs so people can grab coffee or have lunch. 

SunCoast describes itself as a hybrid store. “We’re going to have more natural organic products than a Vons or Ralphs, but we are also going to carry some conventional food because we want to meet the affordability needs of the community,” Frink said. 

Its prepared food section will include a salad bar, soup bar, and grab-and-go options like salads, wraps and sandwiches prepared daily in its kitchen. Scoop and gravity dispensers will house grains, beans, flours, spices and nuts. It’ll have nut grinders for fresh peanut and almond butters. Shoppers can use recyclable or reusable containers for these bulk items. SunCoast will also provide a refill station for soaps made by Dr. Bronner’s, a family-owned brand based in Vista.

SunCoast plans to source products from 100 local businesses, including those who make breads, pasta sauces and salsas, in addition to the 50 local farms. 

“We want to support as many San Diego County businesses as we can through the store,” Frink said. “I think of ourselves as an incubator for small businesses and farms.”

Hang Nguyen is a freelance writer for the U-T.