The ad, which launches on TV today, focuses on "real people" such as the Southport Lifeboat crew, and promotes the message that buying from the Co-op "does good" in your local community.
The spot, created by Leo Burnett London, launches today and features only one actor, Emma Edmonson, who provides the voiceover.
The real-life cast are all friends and families filmed across four groups: the Southport Lifeboats; Leeds Urban Farm for people with learning disabilities; the Glusburn Amateur Drama group; and the Shifnal and District Male voice choir.
The Co-op re-launched its membership offer in September this year, which gives members 5% back on the cost of Co-op own brand products and then donates 1% to a nominated local cause.
Rob Tenconi and Mark Franklin at Leo Burnett were the creatives behind the spot, which was directed by Joshua Neale through Smuggler. The Co-op uses Rocket for its media planning and buying.
The TV spot will also air in cinema and the campaign will also comprise outdoor advertising, press, online, social and in-store executions.
Jemima Bird, customer director at the Co-op, said: "For our Christmas 2016 campaign, we have focused on the very thing that makes the Co-op so special, showcasing how buying our brilliant own brand food and drink can do good within your community through the 1%.
"As a convenience retailer who operates in the heart of communities across the UK, we see our membership scheme benefiting local causes every single day, and the groups in our Christmas advert had great fun participating in the filming too."