This piece is part of the weekly series “Growing Forward: Insights for Building Better Food and Agriculture Systems,” presented by the Global Food Institute at the George Washington University and the nonprofit organization Food Tank. Each installment highlights forward-thinking strategies to address today’s food and agriculture related challenges with innovative solutions. To view more pieces in the series, click here.
The global food and beverage industry today faces unprecedented challenges. Geopolitical unrest, shifting tariffs, regulatory change, and rapid technological advances are reshaping markets and threatening stability. Compounding these pressures is a workforce model under significant strain and challenged by immigration restrictions, demographic changes, and economic uncertainty.
Yet within this disruption there is an extraordinary opportunity. Employee ownership, a proven and resilient business structure, is gaining fresh momentum just as thousands of business owners worldwide approach retirement. Guy Raz, award-winning host of the popular “How I Built This” podcast, described employee owners as “architects of ownership—of purpose, of responsibility, of a shared mission and shared rewards.” When implemented effectively, and at scale, employee ownership has the potential to transform the food and beverage sector into an industry where people can build meaningful livelihoods, strengthen their communities, and share equitably in the rewards of business success.
When Bob Moore transferred ownership of Bob’s Red Mill to his 700 employees in 2010, he demonstrated how employee ownership could transform both workers and businesses in the food industry. By the time he passed away in February 2024, he left behind more than just a successful whole-grain foods brand; he left a legacy for how businesses can create lasting value for both employees and communities.
Under employee ownership, the company has continued to grow and maintain a strong reputation. Bob’s Red Mill uses an Employee Stock Ownership Plan (ESOP), the most common structure for employee ownership in the United States. An ESOP is a trust set up by the company to hold shares on behalf of employees, functioning as a retirement account that provides financial benefits when they leave or retire. According to public reports, the average ESOP account value for employees at Bob’s Red Mill has exceeded US$300,000, reflecting the tangible benefits of shared ownership.
Employee ownership is best described as a legal business structure in which workers gain a financial stake in their company’s success, typically through profit-sharing, equity-based retirement plans, or stock ownership programs. These broad-based ownership models can be implemented by businesses of all sizes, using experienced advisors and established frameworks to navigate different regulatory environments. While standout examples of employee ownership, like Bob’s Red Mill, have existed for decades, they remain the exception.
In the next 10 years, approximately 51 percent of businesses in the U.S. owned by Baby Boomers will be transferring billions in assets as they retire and look to exit their business. For the food and beverage industry, this “silver tsunami” carries especially high stakes. The industry employs 10 percent of the U.S. workforce and sustains intricate supply chains that connect communities across the country and beyond. But fewer than 1 in 4 business owners have formal succession plans, putting workers, suppliers, and entire regional food systems at risk. Without thoughtful planning, these transitions could destabilize the communities and supply chains that rely on these businesses for jobs and economic resilience.
Private equity firms and strategic buyers routinely approach business owners with attractive offers, presenting a convenient but often less-than-ideal exit strategy. Employee ownership provides a compelling alternative, enabling owners to transition out on their own terms while safeguarding the company’s legacy and protecting employees’ livelihoods. Unlike sales to outside buyers, which can result in relocation or closure of certain business lines, employee ownership keeps businesses anchored in their communities and focused on long-term stability.
The business case for employee ownership is compelling. Extensive studies consistently show that employee-owned companies enjoy stronger performance, including higher productivity, revenue growth, job security, and firm longevity. For instance, employee-owned firms see productivity rise by around 5 percent in the first year and outpace peers with roughly 2.3–2.4 percent greater sales growth. Despite these benefits, employee ownership transitions remain rare. In 2024, private equity completed the purchase of over 7,000 small and medium-sized businesses in the U.S. while only 200 companies of similar size became employee-owned; this represents a massive missed opportunity for business owners and workers alike.
No industry is better positioned to lead the employee ownership movement than food and beverage. These companies depend on skilled workers, foster deep connections within their communities, and are guided by long-term perspectives. With core values rooted in sustainability, quality, and local stewardship, the sector is a natural fit for broad-based ownership. Other notable examples include Waitrose, a major UK grocery chain, and Publix, a leading U.S. supermarket. Both are among the largest employee-owned businesses in their respective countries and have built trusted brands while delivering strong financial performance by empowering employees with a meaningful stake in the company’s success.
Karen Colberg, CEO of King Arthur Baking, another employee-owned food company, echoes this sentiment: “Being an ESOP is very much part of our culture…When [the owners] decided to retire, they wanted to transition the ownership to the employees. It was a wonderful opportunity to preserve the company and what it means to the community.”
Employee ownership isn’t a silver bullet. But it is a strategic, tested, and people-centered approach to today’s challenges. For retiring owners, it safeguards the legacy they’ve built. For employees, it creates opportunities for wealth-building and meaningful participation. And for companies in the global food industry, it fosters enduring, values-driven relationships with both workers and communities.
But if employee ownership is to become more than a niche solution, we must raise awareness of its potential and work together to build the infrastructure that makes it as accessible and straightforward as selling to traditional buyers.
Leaders in the food and beverage industry can drive this transformation by taking concrete steps: championing employee ownership at industry events and throughout their supply chains, backing policies that make these transitions more accessible, and developing new sources of capital and investment to help businesses become employee-owned and thrive for the long term. Additionally, companies can use their procurement power to support employee-owned businesses and proactively include employee ownership as a key option in their own succession planning.
This movement is already underway. Leaders across the food and beverage sector cannot afford to miss this moment to reshape their industry for the better. The question isn’t whether employee ownership will grow, but whether food industry leaders will help drive that growth or watch from the sidelines as others capture its benefits.
Photo courtesy of Unsplash
