The Co-operative Group ECONOMIC

Target: The Co-operative Group / Co-operative Group Limited Audit domain: Economic Research cut-off: 23 October 2026 Geographic scope: Israel, the occupied Palestinian territories, including East Jerusalem and the West Bank, and the occupied Syrian Golan Heights.

Supply Chain & Sourcing Relationships

Historical direct supplier relationships

[pre-2020] On 25 April 2012, the Co-operative Group Board decided to discontinue procurement from produce suppliers known to source from Israeli settlements; the decision affected Agrexco, Arava Export Growers, Adafresh and Mehadrin, representing approximately £350,000 of trade, according to a contemporaneous company statement reproduced by campaigners.¹

[pre-2020] The four named exporters were independently identified in April 2012 reporting by the Jewish Telegraphic Agency, which described the company’s withdrawal from commercial relationships involving produce from West Bank settlements.²

[pre-2020] A UK parliamentary Early Day Motion also named Arava Export Growers, Agrexco, Adafresh and Mehadrin in connection with the Co-operative Group’s Israeli supplier exclusions.³

[pre-2020] The Group’s April 2012 statement said approximately 20 other Israeli suppliers continued supplying the company because they were not identified as sourcing from settlements; the subsequent duration of those arrangements is unknown.¹

Agricultural products

[pre-2020] The 2012 historical supplier evidence concerned agricultural produce, with the contemporaneous investigation specifically referring to grapes and dates associated with settlement production; it does not establish that every listed product was sold by the Co-operative Group.¹

On 24 June 2025, the Group expressly identified carrots sourced from Israel among products to be removed under its revised sourcing policy, establishing Israeli carrots as a category affected by the announced restrictions.⁴

Sourcing policy changes

The Group announced on 24 June 2025 that its Board had approved a sourcing policy covering 17 countries, including Israel, under which clearly and solely originating products and ingredients would be removed through a phased process beginning in June 2025.⁴

Co-operatives UK independently described the June 2025 policy as applying to Co-op-branded ingredients and whole products from the designated countries, including Israel.⁵

A 2026 update to the Group’s 2025 member motion states that the company concluded Israel met the policy threshold and announced that it would no longer source products or ingredients from Israel alongside 16 other countries.⁶

The Group’s 2025 announcement included the qualification “wherever possible” and acknowledged that implementation depended on the ability to identify and replace products and ingredients within complex supply chains.⁴

Importer of record

No public evidence identified establishing a specific wholly-owned company, joint venture or dedicated import entity acting as importer of record for Israeli-origin goods.

Seasonal sourcing

No public evidence identified establishing recurring December–April procurement schedules, seasonal minimum-volume commitments or identifiable annual purchasing cycles involving Israeli suppliers.

Third-party and indirect sourcing

[pre-2020] The 2012 decision specifically addressed indirect settlement sourcing by suppliers, demonstrating that the Group’s policy considered upstream procurement relationships as well as the direct geographic origin of goods.¹

No public evidence identified establishing a named post-June-2025 third-party distributor, reseller or private-label intermediary continuing to deliver Israeli-origin goods to the Group.

Franchise and wholesale channels

In August 2026, the Group described its wholesale operations as supplying approximately 8,000 outlets, alongside approximately 2,300 Co-op food stores; no Israel-specific product flow through those outlets was identified in that announcement.⁷

No public evidence identified documenting settlement-origin products distributed through Co-operative Group franchisees, licensees or wholesale customers after the 2025 sourcing-policy change.

On 1 October 2024, Palestinian fair-trade social enterprise Zaytoun announced a commercial supply partnership with The Co-operative Group, under which its Fairtrade-certified organic extra virgin olive oil would be stocked in 250 Co-op stores across the United Kingdom beginning that month. Zaytoun Managing Director Manal Ramadan White stated that the agreement created new market access for West Bank farmers, while Co-op Head of Commercial Greg Goodwin explicitly welcomed Zaytoun as a supplier. The announcement establishes a documented commercial relationship connecting Co-op’s UK retail distribution network with Palestinian agricultural producers. Zaytoun independently confirms that it sources exclusively from Palestinian producers and operates through fair-trade supply relationships.^{8, 9}

Product Origin, Labeling & Regulatory Compliance

Settlement-origin products

[pre-2020] The 2012 supplier investigation identified Mehadrin as sourcing products from Israeli settlements, including Beqa’ot in the occupied Jordan Valley, and reported that grapes and dates packaged in the settlement carried “Produce of Israel” labels.¹

[pre-2020] The investigation does not establish that the specific settlement-packaged grapes or dates described were stocked in Co-operative Group stores.¹

[pre-2020] The Co-operative Group’s response was to discontinue relationships with four named exporters rather than continue purchasing their produce under alternative origin labels.²

Historical corporate policy

The Group’s published settlement policy describes a Human Rights and Trade Policy operating since 2009 and an April 2012 Board decision to cease engaging with produce suppliers known to source from Israeli settlements.¹⁰

The policy states that the Group does not source produce or own-brand products from Israeli settlements in the occupied Palestinian territories or from Moroccan settlements in Western Sahara.¹⁰

2025–2026 corporate policy

On 17 May 2025, Co-op members supported advisory Motion 13, “Trading with Israel”, by 72.80% to 27.20%.¹¹

The Business & Human Rights Resource Centre documented the member vote and the company’s subsequent statement that it was reviewing its sourcing policies in response to member concerns.¹²

The Group’s Board subsequently approved its revised policy on 24 June 2025, extending restrictions beyond settlement-produced goods to identifiable Israeli-origin products and ingredients.⁴

The company’s 2026 published update confirms Israel’s inclusion in the list of 17 countries subject to the revised sourcing decision.⁶

Applicable UK labelling framework

UK government guidance states that goods originating from Israeli settlements in territories occupied since 1967 should be specifically labelled as settlement-origin goods so that consumers are not misled.¹³

The UK’s Notice to Importers, updated on 22 August 2025, states that products produced in Israeli settlements within territory brought under Israeli administration since June 1967 do not qualify for preferential treatment under the UK–Israel Trade and Partnership Agreement.¹⁴

The government requires relevant origin documentation to identify the postal code and location where production conferring originating status occurred.¹⁴

General UK product-labelling requirements prohibit misleading descriptions concerning how or where products were made.¹⁵

Regulatory enforcement

No public evidence identified of a DEFRA, HMRC, Trading Standards or other regulatory enforcement decision finding that the Co-operative Group incorrectly labelled products originating in Israeli settlements.

No public evidence identified of a customs penalty specifically imposed on the Group for claiming preferential tariffs on settlement-origin products.

Policy implementation verification

The company’s 2026 published update confirms the sourcing-policy decision but does not provide a complete SKU-level or supplier-level verification schedule establishing the removal status of every potentially affected input.⁶

No public evidence identified of an independently audited October 2026 inventory reconciliation documenting the complete removal of Israeli-origin goods from every Co-operative Group retail and wholesale channel.

Investment, Capital & Financial Exposure

Foreign direct investment

No public evidence identified documenting a direct Co-operative Group investment in an Israeli factory, warehouse, retail estate, logistics hub, office, data centre or other operating asset.

Acquired Israeli subsidiaries

The Group’s published subsidiary register dated 11 October 2024 identifies entities including Co-operative Group Food Limited, Co-operative Brands Limited, Co-operative Group Holdings (2011) Limited, Co-operative Group Legal Services Limited and Nisa Retail Limited; the register does not identify a named Israeli-incorporated operating subsidiary.¹⁶

No public evidence identified of an Israeli operating company acquired or controlled by the Group, including an Israeli manufacturer, consumer brand, technology company, agricultural exporter, pharmaceutical company or infrastructure business.

No public evidence identified of an Israeli subsidiary acquisition date, acquisition price, ownership percentage, manufacturing location, Israeli employee count or defence-related operating relationship.

Research and development

The Group’s April 2025 announcement described investment in AI technology within Co-op Legal Services to support probate operations, without identifying an Israeli R&D facility or Israeli technology-development partner.¹⁷

No public evidence identified of a Co-operative Group research centre, innovation laboratory, accelerator or technology-development facility located in Israel.

Ownership and capital structure

The Co-operative Group states that it is a member-owned co-operative rather than a publicly listed company and that it has no external shareholders acquiring conventional equity stakes in the Group.¹⁸

Its published governance arrangements give members an equal ownership stake and provide for member participation in Board elections and corporate decisions.¹⁸

The Group’s subsidiary disclosures identify a structure consisting principally of UK-registered operating and holding entities, with internal ownership relationships between Co-operative Group Limited and its subsidiaries.¹⁶

Portfolio and investment holdings

No public evidence identified of the Group directly holding a material disclosed portfolio of Israeli-domiciled operating companies, Israeli sovereign bonds or Israel-focused investment funds.

No public evidence identified documenting a controlling Israeli equity investment through an affiliated Group investment vehicle.

Israeli state financing

No public evidence identified of the Group acting as an underwriter, lead arranger, seller or distributor of Israeli sovereign debt or Development Corporation for Israel bonds.

No public evidence identified of direct Group lending or trade-finance facilities specifically provided to Israeli defence manufacturers or OHCHR-listed settlement enterprises.

No public evidence identified of insurance policies issued by the Group specifically underwriting Israeli military operations, settlement development or Israeli state infrastructure.

Pension and externally managed assets

No public evidence identified establishing the specific current exposure of Group pension funds or third-party managed portfolios to Israeli sovereign bonds, Israeli defence manufacturers or companies involved in settlement activity.

Controlling principals

The Group appointed Kate Allum interim Chief Executive on 30 March 2026 following the departure announcement of Shirine Khoury-Haq.¹⁹

On 10 August 2026, the Group announced Debbie White’s departure as Chair and the appointment of Moni Mannings as interim Chair.²⁰

No public evidence identified of material personal or family-office investments in Israeli companies, Israeli defence firms or settlement enterprises attributable to Kate Allum, Moni Mannings, Rachel Izzard, Debbie White or Shirine Khoury-Haq.

Operational Presence & Market Activity

Physical footprint

The Group’s 2026 description of its operations identified approximately 2,300 UK food stores, 800 funeral homes and a wholesale network supplying approximately 8,000 outlets.⁷

Its public business description identifies food retail, funeral services, insurance and legal services as principal activities.²¹

No public evidence identified of a Group-operated retail store, office, sales centre, support centre, warehouse, agricultural facility or production location in Israel or the occupied territories.

Employment

The Group’s 2025 annual-results publication reported approximately 53,000 colleagues working across its business.²²

No public evidence identified providing an Israeli employee count or identifying employees based at a Co-operative Group operation in Israel.

Tax and regulatory registration

The Group’s published registered rules identify Co-operative Group Limited as UK registered society number 525R, with its registered office at 1 Angel Square, Manchester, M60 0AG.²³

The October 2024 subsidiary register identifies UK tax residency for the principal Group entities shown in the published schedule.¹⁶

No public evidence identified establishing Israeli corporate tax residency, Preferred Technology Enterprise status, an Israeli operating-company registration or Israeli VAT registration held by the Group.

Israeli market positioning

[pre-2020] The Group’s historical April 2012 statement described approximately 20 continuing Israeli produce suppliers after excluding four exporters associated with settlement sourcing, demonstrating that Israel remained a procurement market at that date.¹

The Group’s June 2025 sourcing announcement identified Israel among 17 countries from which it intended to discontinue specified sourcing relationships.⁴

No public evidence identified of an annual-report description characterising Israel as a current strategic growth market, regional operating hub or major destination for the Group’s services.

Government and defence relationships

No public evidence identified of a direct contract with the Israeli Ministry of Defence, IDF, Israeli public-sector procurement authorities or Israeli security agencies.

No public evidence identified establishing that the Group operates Israeli critical national infrastructure.

Settlement operations

No public evidence identified of a Co-operative Group-operated branch, warehouse, service centre or licensed retail operation located in an Israeli settlement in the West Bank, East Jerusalem or occupied Golan Heights.

Post-July 2024 activity

In June 2025, after the International Court of Justice’s 19 July 2024 advisory opinion and the International Criminal Court’s November 2024 arrest warrants, the Group publicly announced the phased discontinuation of sourcing covered products and ingredients from Israel.⁴

The announced policy was reaffirmed in a published 2026 update, although that update does not provide transaction-level evidence proving the absence of every subsequent Israeli-origin purchase.⁶

Corporate Structure & Foundational Ties

Founding history

[pre-2020] The Group traces its co-operative history to the Rochdale Pioneers movement established in Lancashire in 1844; the historical roots described by the company are British.²⁴

The Group’s registered rules establish its legal identity as Co-operative Group Limited, a society registered under the Co-operative and Community Benefit Societies Act 2014.²³

No public evidence identified that the target originated as an Israeli-incorporated company or acquired its present identity through an Israeli predecessor business.

Headquarters and domicile

The Group’s registered rules identify its registered office as 1 Angel Square, Manchester, M60 0AG.²³

No public evidence identified of a current or historical Israeli headquarters or principal place of management.

Member ownership

The Group states that it does not issue conventional publicly traded shares and is owned by its members, who participate in its democratic governance.¹⁸

The company’s registered rules provide for a Board elected by members and governance protections relating to its co-operative structure.²³

No public evidence identified of an Israeli government, Israeli investment company or Israeli private-equity sponsor exercising ownership or control over the Group.

Principal subsidiaries

The Group’s 11 October 2024 subsidiary register identifies Co-operative Group Food Limited, Co-operative Group Holdings (2011) Limited, Co-operative Brands Limited, Co-operative Group Legal Services Limited, Co-operative Foodstores Limited and other UK-domiciled operating entities.¹⁶

The register also documents shareholding relationships between Group entities and identifies their legal status, incorporation jurisdiction and tax residency.¹⁶

No public evidence identified of a controlled Israeli operating subsidiary within the examined corporate structure.

Current leadership

Kate Allum was appointed interim CEO from 30 March 2026 following Shirine Khoury-Haq’s decision to step down.¹⁹

Moni Mannings was appointed interim Chair on 10 August 2026 after Debbie White stepped down from the Board.²⁰

State and institutional linkages

No public evidence identified of Israeli state ownership, Israeli government-appointed directors, special voting rights held by Israeli authorities or other Israeli government control mechanisms.

Structural governance features

The Group’s registered rules provide governance mechanisms designed to protect its co-operative character and member control.²³

No public evidence identified of an Israeli state golden share, Israeli founder-control right, Israeli government veto or constitutional obligation linking the Group’s purposes to Israeli state policy.

Israeli-Nexus factors

Israeli foundation: The published corporate history establishes British origins; no public evidence identified of an Israeli foundation or original incorporation.²⁴

Israeli headquarters: The published registered office is in Manchester; no public evidence identified of an Israeli principal place of management.²³

Israeli tax residency or PTE status: no public evidence identified.

Israeli beneficial ownership or control: The company describes a member-owned co-operative structure; no public evidence identified of Israeli capital exercising beneficial or operational control.¹⁸

Israeli acquired operating identity: no public evidence identified.

Profit Repatriation & Economic Contribution

Group revenue

The Co-operative Group’s 2025 annual-results publication reported approximately £11 billion of Group revenue and an underlying operating loss of £35 million for the financial year.²²

The Group’s March 2026 financial update reported £418 million of revenue from Life Services in 2025, including the estimated effects of the cyberattack.²⁵

No public evidence identified of a separately disclosed Israeli revenue segment, Israeli retail-sales figure or country-specific Israeli gross margin.

Historical trade value

[pre-2020] The April 2012 company statement identified approximately £350,000 of trade affected by the decision to discontinue relationships with four Israeli agricultural exporters associated with settlement sourcing.¹

[pre-2020] The statement also described continued commercial relationships with approximately 20 Israeli suppliers, but did not provide a complete value for their procurement contracts or an Israel-specific profit calculation.¹

Current procurement contribution

The Group’s June 2025 announcement specified that products and ingredients covered by the revised sourcing policy would be withdrawn on a phased basis beginning that month.⁴

The published 2026 member-motion update confirms Israel’s inclusion in the sourcing restrictions without disclosing the monetary value of remaining or discontinued contracts.⁶

No public evidence identified of a verified total Israeli procurement expenditure for 2024, 2025 or 2026.

Profit flows

The Group describes itself as a member-owned co-operative whose commercial activities support members and communities.²¹

No public evidence identified of profits being repatriated to an Israeli-domiciled parent, Israeli controlling shareholder or Israeli family-office owner.

No public evidence identified quantifying profits generated by Co-operative Group activities inside Israel and remitted to the United Kingdom.

Financial instruments

In September 2026, the Group reported liquidity of approximately £1.2 billion, including a new £350 million sustainability bond, in its interim financial update.²⁶

No public evidence identified connecting the Group’s disclosed sustainability bond to Israeli sovereign financing or Israeli government bond distribution.

Economic ecosystem role

[pre-2020] The 2012 supplier decision affected four named agricultural exporters and approximately £350,000 of trade, while the company reported continuing relationships with approximately 20 other Israeli suppliers.¹

The 2025 policy publicly identified Israeli carrots among agricultural products affected by its sourcing restrictions.⁴

No public evidence identified of an Israeli government or industry assessment designating the Co-operative Group as a nationally significant Israeli employer, agricultural-sector anchor, infrastructure operator or strategic investor.

Evidence remaining unavailable

No public evidence identified of complete customs records, Israeli supplier payment histories, Israeli country-level profit attribution, settlement-specific sales or verified October 2026 product-level procurement reconciliation.

In 2025, The Co-operative Group published promotional terms stating that 100% of trading profits, calculated from in-store till sales of Zaytoun Dates (250g), would be donated to Zaytoun Community Interest Company (company number 05078436) until 1 April 2025, for reinvestment in its mission of supporting Palestinian farmers. The indexed company terms specified a £4 member price and £5 non-member price and restricted the promotion to participating Co-operative Group food stores. However, the original terms page returned an automated-access challenge when opened, preventing direct verification of the full conditions. Independently accessible evidence confirms that Zaytoun reinvests its profits into supporting Palestinian producers and that Co-op stocked its Palestinian dates. The promotional commitment is therefore supported by indexed company text, but the actual donation amount, payment completion and resulting financial benefit remain unverified.^{9, 27}