The Food Shed Co-op in Woodstock is launching a capital campaign as it tries to get sales up and become more financially sustainable.

The grocer late last year embarked on a campaign to raise $50,000 by the end of the year while acknowledging it was having issues staying afloat. Two donors contributed $50,000 between them, and the store raised between an additional $20,000 and 30,000 during that campaign.

Scott Brix, the Food Shed board president, said late last year the store was working on launching a capital campaign in the coming weeks. The Food Shed announced the campaign launched Sunday and will run through March 31.

The co-op is aiming to raise $250,000 through the capital campaign, which is meant to provide funds for day-to-day operations while the business continues to mature, according to a Food Shed news release.

Food Shed has about 2,700 member-owners, and any resident in Illinois or Wisconsin can become an owner by buying at least two shares for $100 each.

But people don’t have to be an owner to participate in the capital campaign, according to the release. Anyone, even if they are not an owner, is also welcome to shop at the store. Brix said last month people can do many things to support the co-op, but the main one is including the Food Shed in their grocery shopping routine.

The Food Shed opened in May 2024 and had to have enough cash reserves on hand to be able to run for three years. The store also had to jump through many hoops to prove to banks and the USDA that it was feasible, Brix said last month. Inflation and lingering post-COVID-19 supply chain issues, among other things, have eaten into those reserves.

“The Food Shed Co-op exists because neighbors came together to build something our community wanted and needed,” Brix said in the release, adding the campaign “is about sustaining what we’ve built and ensuring this community-owned grocery remains strong as sales continue to grow toward financial stability.”

The Food Shed board is working with a local bank on financing, but the store said owner- and community-based capital provides more flexibility, is less costly and aligns better with co-op values, according to the release.

Co-ops like the Food Shed are often touted as being more locally focused, environmentally aware and beneficial to communities than corporate grocery chains.

In addition to donations, the Food Shed said people can buy interest-bearing preferred shares. Any Illinois resident can buy up to 10 shares at $1,000 each, according to an FAQ about the campaign on the Food Shed website. Preferred share dividends will be made at the Food Shed board’s discretion. They carry a target rate of up to 5%, but the board might distribute a smaller or no amount depending on the co-op’s financial performance.

Owners interested in making at least a $10,000 investment in the co-op are able to make an owner loan. According to the FAQ, those loans are a 15-year investment and carry interest rates up to 4% depending on the amount of the loan.

Food Shed officials said operational improvements, including new management and an expanded prepared food and grab-and-go selection, have helped positive sales momentum.

For more information about the campaign, people can visit owners.foodshed.coop/cic26 or email invest@foodshed.coop.