Health First Network celebrates its 25th anniversary
Stronger together, stronger than ever
By Bruce W. Cole
The Health First Network (HFN) is celebrating its 25th anniversary this year. The group—made up of 108 members, representing 147 independent health food stores across Canada—has a great deal to celebrate.
What started back in the mid-1980s as a simple initiative to help independent health food stores face rising competition has blossomed into a model retailer organization that has inspired the formation of similar organizations across the globe.
Beyond business
HFN combines the aspects of a buying group, a distribution business, and a business and marketing support organization. HFN also has its exclusive line of Health First products as well as a warehouse.
However, members will tell you there is more to being part of HFN than just business; it’s really about the people. “Apart from all the benefits one gets from things like a well-run member organization, group buying, and member input on new products, I have really enjoyed networking with other retailers doing the same thing, solving the same problems, fighting the same fights, sharing information,” said Rudi Mogl, owner of Tara Natural Foods, Kingston, Ontario. This sentiment is echoed by most HFN members, who feel like they are part of a family.
Robert McKay, owner of Vita Health Foods in Niagara Falls, Ontario, says “HFN is more than anyone can dream up.” He credits its founders for building a network of independent and locally owned health foods stores across the country that supports community, health, and wellness.
Beyond the tangible benefits of being an HFN member, there are intangibles. “The opportunity to share and network with our fellow members has been an invaluable resource. It has allowed us to exchange ideas with others who are facing the same challenges. We have implemented several successful ideas learned from them. In that sense, HFN feels more like a community of like-minded retailers,” says Sebastian Wong of Ki Nature et Santé, Montreal, Quebec.
Davide Viola has been president and CEO of HFN since 2019. From the moment he was brought on board to lead this group, he knew he was part of something unique. “HFN is unlike almost anything in any industry. There are buying groups, but this is different. There are likely not many companies around like this, globally.”
In the beginning …
The feeling of friendship, love, unity, and community shared by HFN members is not some accidental miracle; it has always been part of the group’s DNA, always part of the plan.
One of the key figures in the birth and development of HFN was Dean Yachison. He played a big part in laying the foundation for HFN, beginning almost 40 years ago in 1980s Winnipeg, Manitoba.
While working as a sales rep in Saskatchewan for Vita Health Manufacturing and Wholesale, Dean proposed the idea of creating private-label supplements for traditional health food stores. The company was already making private-label products for some pharmacies. Dean’s idea was widely accepted by many retailers and eventually implemented nationwide. “I believed in the idea and thought it would work for health food stores too.”
Next, Dean introduced an annual gathering of all private-label retailers along with retailers involved with the Vita Health flyer program, bringing both groups to Winnipeg for product and business education sessions, a plant tour, and networking.
At these gatherings, friendships blossomed, bonds were forged, and ideas were shared as the store owners discovered their community where they could openly discuss their issues, challenges, and solutions.
“They were each all alone, an island,” recalled Dean. “Being with like-minded people was a revelation. They had similar problems and issues and saw how they could help each other.”
This led to regular interaction between retailers, and an informal structure began to form. Dean explained, “retailers began helping each other with things like lease problems and accounting. They began to open up to each other, revealing their strengths and weaknesses, and people stepped up to help.”
In August 1999, this founding group of 22 retailers officially announced the formation of United Health Merchants, later rebranded as Health First Network in 2001.
Health First Network
In the early stages, retailers with specific strengths and knowledge were invited to join the group. “It was about giving retailers the tools they needed to succeed,” said Dean, “so, we handpicked potential members based on what they could bring and share with the group.”
If you were in the group, says Dean, you sat on a committee. If a store was faltering, retailers would pitch in to help. “We found by working together, we could make a mediocre store good and a good store great. We found we were smarter together.”
Love and support abounded
Now retired, George Chow is a founding retailer of HFN. He said “if Dean wasn’t at the helm, I don’t think HFN would be here today. I don’t know anyone with his energy, who could get the excitement going. He was the guy who got people on board quickly, and who breathed life into the organization. The group would not have taken flight without Dean.”
Aside from Dean, other key founders who drove the group were retailers John Holtmann, Brock Elliott, Bill Gall, and Stuart Hellis.
From the very beginning, recalls George, the thing all group members felt was love. “We gave it and got it back. That love and support allowed me to be able to support my customers. If I didn’t know something, I had people to contact and find the answers. As HFN members, we had each other’s back. And we had so much fun together. I felt I was part of a family. And that’s the feeling I would like the group to perpetuate. It was the caring, compassion, and goodness we wanted for each other that we gave and received. It was something wonderful to be a part of it.”
Support from HFN staff
Building on the desire to be competitive in their communities and buoyed by the support from fellow members, the organization began to gain structure and grow. HFN’s office space requirements increased as support staff grew from two to its current count of 25.
Davide Viola says the HFN support team has but one goal—to help members become the best operators in the industry. “Our team is amazing, and every conversation we have is always about how we can do more for our membership and our vendor partners. The team is laser-focused on helping and doing more for our members.”
Callie Farrell, HFN product development and education manager, says that if you are a member store, you have access to many things that would be costly and time consuming to duplicate as a lone store. “The biggest enticements to join HFN are the vendor partnerships, member networking, warehouse access, marketing services, and the exclusive Health First brand. The high-quality brand is one of the many reasons stores join us. It’s a professional-level brand that now has been around for 25 years. It is one of the main reasons for lifelong membership.”
Currently, the Health First brand has 109 SKUs. “It offers healthy margins for members, and a competitive price point for consumers,” says Callie, adding the products HFN creates are designed to help members develop a loyal customer base for their store.
HFN’s marketing services
Marketing services offer another solid case for attracting members. “The national flyer program is free for members, with each store getting a customized masthead,” says Callie.
HFN also creates a highly engaging e-newsletter sent twice a month to consumers. “The member builds their customer list, and we send it out on their behalf.” Members can customize the e-newsletter with original content. The e-newsletter also promotes the Health First flyer.
The membership deeply values HFN’s marketing services. Jason Sebeslav of The Peanut Mill Natural Foods Market, St. Catharines, Ontario says, “2024 marks our 10th year as an HFN member store, and I couldn’t be happier with the decision I made back in 2014. Membership has offered our store—and myself as a member—many great benefits. Prior to 2014, we were doing our own monthly flyer, and I recall first doing the math on the switch to the HFN flyer that was included in the member dues. That alone was enough to convince me the ROI was substantial and I no longer had to build the flyer.”
Yarmouth Natural Health co-founder Gary Arnett, Yarmouth, Nova Scotia, says, “as a smaller store in rural Maritimes, the benefits are immensely important to our ongoing growth and success. The vendor discounts and deals we receive through Health First are by themselves reason enough to be a member. The monthly flyer, ecommerce flyer, and website coordination are all areas we could never do on our own, or at least not as cost effectively as the group. The exclusive label brand offers our customers a top-quality line while providing us with a product line that is unique to our store. The ever-growing warehouse adds convenience and line of products.”
Growth is also top of mind for Sirena Bird of Vitamin King, Penticton, BC. “It has meant that we can focus on the growth of other aspects of the business because we know we don’t have to focus on things like the flyer, which is so well done by the HFN team. We save time ordering through the warehouse instead of trying to build minimum orders at many vendors, and we know we are getting the best discount. All this saved time means focus and growth elsewhere.”
Together is better
Davide Viola admits he has fears for the future of independent retailers. He doesn’t want to see the same things happen to independent health food stores that have happened in many other retail sectors, where many stores are now under a corporate umbrella, like pharmacy, hardware, and toys. HFN is helping its members maintain their independence through togetherness. “HFN isn’t for stores that want to be alone. It is a place for people who want to be in a group, especially as the environment gets tougher. HFN is an amplifier, like a lever.”
Recently, Davide has revived the member’s monthly forum. “Members join in to chat about what’s happening with their store or community. The strength of HFN has always been its members’ willingness to help and share. We are always better and stronger in a group.
“We are always asking, ‘What more can we bring to market to capitalize on the strength of the group? What more can we do to get knowledge to everyone? How can we support each other and our vendor partners? How can we continue to drive sales and help more people? How can we offer more services? HFN is all about partnerships and the opportunity to grow and support the independent retailer to thrive.
“Indeed, we have been transformational the last few years, but there is more we can do. Retail is never easy, and we must relentlessly strive for optimization and quality member service.”
Davide puts into perspective the unique nature of HFN and its role with independent retailer members. “If HFN were to disappear, it is not replaceable—that is the beauty of it. There is not another organization like this that exists.
“We can’t take each other for granted. We need each other more than ever. We can ensure we grow and protect each other, which is the only thing that matters. The concept of HFN is more important now than it was 25 years ago. We have to do more of this. HFN has to evolve to continue to be strong so we can celebrate our 50th anniversary!”