FOR IMMEDIATE RELEASE

Press Contact: Carrie Hutchison, 301.280.6003, carrie.hutchison@calvertfoundation.org

First Lady Michelle Obama Hosts Major Food Access Launch

California’s $200 Million Public-Private Loan Fund Provides Financially Attractive Blueprint For Healthy Food Access To Underserved Communities; Financing Encourages Economic Growth and Creates/Retains up to 6000 Jobs

Washington, DC – In an announcement ceremony today at the White House, First Lady Michelle Obama announced an innovative healthy food financing initiative – the California FreshWorks Fund. A project of The California Endowment and an all-star team of partners, FreshWorks is a $200 million public-private partnership loan fund created to increase access to healthy, affordable food in underserved communities, spur economic development, and inspire innovation in healthy food retailing.

The First Lady celebrated the launch of the fund by inviting partners involved in the initiative to the White House for a healthy foods summit with corporate and industry leaders. Mrs. Obama, a vocal advocate for healthy food access, highlighted the work of the California FreshWorks Fund and of those involved in its development.

The California FreshWorks Fund (CAFWF) is modeled after the successful Pennsylvania Fresh Food Financing Initiative and developed to align with the National Healthy Food Financing Initiative (HFFI). The fund will make communities across California healthier by working directly with grocers on developing new and improved places to buy nutritious food.  According to CAFWF partners, the new stores are expected to create or retain around 6000 jobs in California.

“Health happens in our neighborhoods. Families can’t eat healthier food if they can’t buy it where they live,” said Robert K Ross, M.D., president and CEO of The California Endowment. “The sheer number of banks and other investors involved proves that this is not only the right thing to do to improve the health of our communities, but it’s financially attractive” He added, “The more than a dozen partners who made it happen should be congratulated for their vision and collaboration.”

“Independent grocers by nature are entrepreneurial and opportunistic and, as a group, have always been willing to open neighborhood-oriented grocery stores in underserved communities that have been passed over by the large chains,” said Al Plamann, Chief Executive Officer of Unified Grocers, a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States.  “While everyone agrees that it will take many years to provide all Californians with easy access to healthy, affordable foods, FreshWorks is positioned to make significant progress in the years ahead and, in partnership with strong independent grocers, I am confident that the program will be one of the most successful in the country.”

Perhaps the most fascinating piece of the FreshWorks announcement is the groundbreaking coalition of grocers, major banks, health care entities, research experts and other partners that came together to solve a problem. The complete list includes: The California Endowment, NCB Capital Impact, NCB, Unified Grocers, California Grocers Association, Kaiser Permanente, Catholic Healthcare West, Calvert Foundation, Social Compact, Emerging Markets, PolicyLink, JP Morgan Chase, Morgan Stanley, Bank of America, U.S. Bank, Community Health Councils, The Reinvestment Fund, and Community Redevelopment Agency of the City of Los Angeles. On the partnership, Peter Barker, Chairman of California for JP Morgan Chase noted, “This partnership exemplifies an innovative, integrated approach among industry leaders in philanthropy, industry, and the community.”

The fund will provide financing to grocery stores and other healthy food retailers and distributors who meet a subset of skillfully developed program guidelines designed to move healthy food retailing forward in an affordable and accessible way and prioritize healthy choices from top to bottom. CAFWF program guidelines are different from and go further than other previous efforts. For example: Projects will get priority points if they don't sell cigarettes, have higher proportion of healthy food retail, eliminate junk food aisles, etc.

Seed stage financing from The California Endowment included a $30 million mission-related investment on the debt side and a $3 million grant. In a matter of months the fund grew to $200 million committed from prominent investors like NCB, Kaiser Permanente, JP Morgan Chase, and others who felt strongly about the model and believed in its potential to transform underserved communities into communities of opportunity.

“It's ironic that some communities have an overwhelming need for access to healthy foods in a state that is one of the largest agricultural producers in the country", said Terry Simonette, President & CEO of NCB Capital Impact, the non-profit community development financial institution (CDFI) that serves as the program administrator of the California FreshWorks Fund. "The California FreshWorks Fund brings together an exceptional combination of private and non-profit partners to deliver a market-based solution to this problem in the absence of public subsidy,” Simonette added.

“It’s thrilling to have witnessed to evolution of the Fund.  Just 18 months ago a few people were staring at a blank white board talking about how to connect investment capital to good food and local jobs.  The fact that we are open for business is a testament to the talent at that table,” said one of the chief architects of the Fund, Daniel Tellalian of Emerging Markets, Inc.

While most investors are large organizations, anyone can invest in the fund online, made possible by partner Calvert Foundation.“We are so pleased to participate in such an exciting and important initiative," said Lisa Hall, President and CEO of Calvert Foundation. "We are especially proud to be able to get the public involved by making it possible for anyone to invest in the FreshWorks initiative. The more we rally around this issue collectively as a community, the stronger and more effective it can become.” To invest, go to www.calvertfoundation.org/healthyfood.

With trusted partners, encouragement from issue leaders like the First Lady, innovations in program guidelines, and $200 million in the pot, the California FreshWorks Fund is poised to bring healthy, affordable food to the millions in California who live in critical food access areas.

http://www.CAfreshworks.com

http://www.youtube.com/cafreshworks

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About Calvert Foundation: Calvert Foundation is a nonprofit organization that provides the opportunity for investors to achieve financial returns while empowering people living in low-income communities in the United States and around the world. Calvert Foundation believes in creating a win-win, improving both the lives of those who receive investment dollars and the lives of our investors. A pioneer in the social impact investment field, Calvert Foundation investors have helped to create over 528,000 jobs for low-income individuals, built or rehabilitated 19,000 affordable homes, and financed close to 27,000 nonprofit facilities and social enterprises through their investment in Calvert Foundation’s Community Investment Note. Learn more at www.calvertfoundation.org.

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