All the while the co-op has endured and continued to provide quality food and keep shelves stocked during this challenging time”

General Manager Matt Malecha

Spiral Food Co-op
1250 S Frontage Rd
Hastings, MN 55033
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Spiral Food Co-op is asking its members and the broader Hastings community for help as the community-owned grocery store works through financial challenges caused by several disruptions during the past year.
General Manager Matt Malecha announced that the cooperative hopes to raise $80,000 from several sources over the next few months. The money would be used to pay vendors and build the co-op’s available cash through regular store operations.
The request comes after a difficult 12-month period that included an extended power outage, road closures that limited access to the store for months and a cash crisis tied to an accounting error.
Despite those challenges, Malecha said the store continued serving customers, stocking shelves and providing quality food to the community.
“All the while the co-op has endured and continued to provide quality food and keep shelves stocked during this challenging time,” Malecha wrote in a letter to members and the community.
Spiral Food Co-op has been part of Hastings for 47 years. The cooperative began as a small startup operating in the basement of the Hastings Armory before eventually growing into its current store.
The co-op now has 2,351 member-owners.
Spiral moved into a larger space in 2022, a major step that allowed the business to expand its selection, increase sales and create additional jobs in the community. According to Malecha, store sales have more than doubled since the move.
The expansion also gave Spiral additional opportunities to support small farmers and producers, an important part of the cooperative’s business model.
Funding such a large move presented challenges because Spiral is organized as a cooperative, rather than as a business owned by a single person or traditional group of investors.
The expansion was completed with support from several community partners, including the City of Hastings, the Minnesota Consortium of Community Development and Vermillion State Bank. Those partners helped provide loans covering much of the project’s cost.
Member-owners also contributed money through donations, preferred shares and loans. Malecha said those members understood that the cooperative’s success depends heavily on support from the people who own and use it.
“We received many contributions, preferred shares, and loans from member-owners who understood that as a community owned business this happens with your support,” Malecha wrote.
Spiral is now turning to that community again.
The co-op has already received some assistance from members and other cooperatives through member loans. It has also opened an online donation page with Cooperative Development Services serving as a fiscal sponsor.
The fiscal sponsorship allows donations to be tax deductible and makes it possible for people to contribute even if they are not currently Spiral member-owners.
The arrangement also allows the cooperative to accept support through several financial methods, including donor-advised funds, required minimum distributions and preferred stock.
The $80,000 goal is intended to help stabilize the co-op’s finances as it continues operating and working with its vendors. The fundraising effort is expected to include support from individual community members, member-owners and other cooperatives.
Malecha encouraged anyone with questions about the co-op’s financial situation or the available ways to contribute to contact him or members of Spiral’s Board of Directors.
The appeal reflects both the benefits and challenges of operating a community-owned grocery store. Spiral’s growth from an Armory basement to a larger store with more than 2,300 member-owners was made possible through community participation, loans and partnerships.
Now, following a year marked by power problems, difficult access and an accounting issue, the co-op is asking that community to help it regain stable financial footing.
“Please reach out to me or our Board of Directors if you have questions or want more information on how to help keep Spiral Food Co-op healthy,” Malecha wrote.