The Observer May 7, 2021

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Observer

VOLUME 84 • NO.51 | FRIDAY, MAY 7, 2021 PM40011904

the

Heart of the Moose Mountains

www.carlyleobserver.com

INSIDE THIS WEEK:

Reach Cafe PAGE A3

Mother’s Day Promotion PAGE A6

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Spring Home and Garden PAGE A10 - 11

Observed At PAGE A7

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Hometown and Borderland Co-ops propose a merger By Laura Kish “Our co-ops will become better together.” Borderland Co-op rolled out to members a proposed partnership with Hometown Co-op. Co-ops were built on the concept of working together and this partnership is sure to make for a stronger, united co-op committed to serving their communities better. That founding principle remains at the heart of this partnership as both co-ops share a vision to offer value, enhance growth, and maintain relevance for current and next generation members. With 218 employees and 7,800 members, Borderland Co-op has locations in Moosomin, Rocanville, Maryfield and Whitewood. Hometown Co-op has 86 employees and 5,200 members, and serves the communities of Kipling, Grenfell, Sintaluta and Broadview. Jason Schenn, CEO of Borderland and GM of Hometown shares his

views about the merger. “Borderland has always focused on being a strong and stable rural cooperative which has been extended to Hometown through the management agreement. The pandemic has proven that when communities support their local businesses, they can be sustainable for the long term. Our continuing mission is to strive to earn our members support so that rural communities we serve can continue to provide essential services long into the future. A shared future between Borderland and Hometown adds to that strength and creates more opportunities to contribute to what makes rural communities so special.” The decision to merge has been in the works for quite some time. “Yes, when you get into the management agreements, they’re not specifically designed to do that but a lot of times it ends up that way because if retails do get along well there’s a lot of benefits of two retails being together

to buy product among other things. It adds more stability, adds more structure, brings more expertise to the table and leadership. It also lets us be more competitive in the marketplace. We hope this will help keep rural branches stay alive.” “Looking at a volume perspective, Borderland is twice as large as Hometown Co-op, in terms of dollar volumes. We’re fairly diverse in the commodities that we serve and we probably have a higher level of leadership. Borderland’s overage policy for equity is 66 whereas Hometown’s is 70 before members can apply for their equity out. Hometown has a $15,000 equity cap, so once you reach that amount, anything over and above that each year is paid out 100 per cent in cash. In Borderland’s case, ours is $10,000. There’s probably about 40 or 50 members within Hometown scattered all over various communities that are at a $15,000 cap so they would see a $5,000 cheque day one.”

Posing in front of the Borderland Co-op office is Borderland president Rob Hill, Hometown Co-op president Lawrence Swanson, and Borderland CAO and Hometown GM Jason Schenn. Photo submitted “The board has elected to stay with the name Borderland Co-op if the two should merge simply due to brand recognition and cost of renaming. Borderland as a name has been in use since 1973 with significant investment in branding

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across many communities over the years. The cost to convert all brand assets would be around $170,000. To rebrand Hometown assets alone would only be $38,000. It was decided that the money would be better put to use investing in

projects and initiatives that make a tangible difference in our communities.” Lawrence Swanson, president of the Hometown board, explains the strength the partnership will achieve saying, A3 » CO-OPS


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