Adam York is not a man to trade his principles for a quick buck. The co-founder of Manchester co-operative Unicorn Grocery refuses to stock Nestlé products "on ethical grounds" and won't abide food with "toxic ingredients".

"I don't have a problem with popular branded products, but we want to show others that food security is a serious issue," he reasons. And Unicorn's stance on branded goods is not the only way in which the single-store co-op offers a beacon of hop to those who fear ethics will become less important in the recession.

Located next to a Morrisons in the Manchester suburb of Chorlton - a few miles from Manchester United's football ground, Old Trafford - it was opened 15 years ago by human ecology graduate York, and Griff Dines, a vicar who has since left the business. While in size it may be similar to some of its co-op cousins at 3,500 sq ft, in terms of its offer, it couldn't be more different. In fact, it's more like a mini Whole Foods Market than a co-op store, with a strong locally sourced and organic offer that York claims includes "probably the north west's largest choice of organic fruit and veg."

Like Whole Foods, it sells a range of grocery, alcohol and household and personal care items. It also has an own brand, which generates about 25% of its revenue. However, unlike the US specialist, it has taken the unusual decision not to sell any dairy, meat, frozen or convenience foods, sticking instead to predominantly fresh or minimally processed foods that avoid added salt, sugar and animal derivatives.

With a turnover of £3.5m, the ethical grocer has clearly hit on a model that works. And York believes the economic situation could play into his hands, if, as predicted, more shoppers ditch their cars and walk to their local independent . "The recessional times have put the model to the test, but we've done quite well so far," he says.

The quality of its fresh and local offer will remain a key differential, he adds. The store sources as much of its stock from local producers as possible. "Freshness has a lot of resonance with shoppers. We can have field crops cut and on the shelf the same day."

Another factor that should stand the co-op in good stead is its broad customer base. Though it includes a high proportion of foodies, it covers a surprisingly wide cross-section, says York. "We've done a fair bit of research into penetration and we're pretty popular," he adds. "Eighty per cent of trade comes from within three or four miles."

Simply put, Unicorn is about "buying direct from producers and selling direct to customers", York says - and it will soon go further than that. The co-op has just bought 21 acres of land at Glazebury on the outskirts of Manchester, on which it intends to grow produce for the store. Once it is up and running, the store's current 40 local, UK and European suppliers will remain on standby to provide what produce is not grown on the land.

Now that really is a fresh take on the co-operative model.n