ANNUAL REPORT 2014
Your co-op needs your support:
From our General Manager
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Our co-op is 40 years old this year, a milestone that you our owners made possible. I wonder if in 1975 our founders imagined their idealistic experiment would grow into the vibrant community-based business that we all participate in and benefit from today. They must have envisioned the hard work and dedication of thousands of owners, employees and board members over the course of decades could generate the positive community changes we have created. Because of their vision and the hard work of many we are able to be here today reporting all of the wonderful accomplishments of 2014. The co-op’s ability to support the community is in direct relationship to the support we receive from our owners. By participating in its activities owners of our co-op can make their community a better place for everyone. Growing sales is the economic engine that makes possible all of the activities of this and all co-ops.
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Shop… shop… and then shop some more! Your dollars are well spent and will grow your community in many positive ways Attend the annual owner meeting, board meetings and special events Participate in our annual customer survey. Let us know what we are doing well and where we can make your shopping experience even better Save some cash and help your co-op by purchasing your groceries on our monthly Owners 10% Off Days, the second Saturday of each month. Encourage your friends and co-workers to become owners
I am proud of the collective accomplishments we have made over the past 40 years and I look forward to our co-op serving our community for the next 40 years. Together we can.
Bruce Phlegar
From our Board President A seismic shift is taking place in the natural and organic food industry with regard to the level of competition in the marketplace. Not only are natural food chains and conventional big-box grocery stores robustly participating in this segment of the industry. Innovative new stores are increasingly entering the marketplace and offering an appealing package of product, atmosphere and low prices. In recent years, CDS Consulting Co-op, with sponsorship from National Co-op Grocers (also a co-op), has organized regional workshops to discuss important issues facing cooperative grocers. For 2015, these workshops focus on surviving and thriving in this competitive marketplace. In late March, representatives from both management and board traveled to Asheville to participate in our region’s workshop. One recurring theme was the importance of
differentiating our co-ops by promoting and educating the public about our commitment to local community, along with social and environmental values. In this Annual Report, we have highlighted some of the important ways we have accomplished these goals in 2014. Thank you to our owners and community for your support of Roanoke Natural Foods Co-op. With your continued support, we expect our co-op to not only survive but to thrive far into the future.
Gayle Cooley
2014 ANNUAL REPORT The accomplishment of our ends is the sole measure of our cooperative's success. This 2014 Annual Report shows in quantitative and qualitative measures how we, through our actions and activities, have impacted our local community and the world in positive ways.
Global Ends Roanoke Natural Food Co-op exists to create a vibrant, local and sustainable cooperative community wwhere decisions are grounded in the balance of economic, social and environmental responsibilities.
Sub-Ends ECONOMY A. Owners benefit from the well-being and profitability of Roanoke Natural Foods Co-op. B. Local producers, businesses and the community at large benefit from the presence and investment of Roanoke Natural Foods Co-op.
HEALTH The community has access to a selection of high quality, organic, and healthful foods and products which are reasonably priced.
COMMUNITY A. Community members have a welcoming and vital marketplace. B. Owners have a sense of pride of ownership and belonging. C. Roanoke Natural Foods Co-op serves as a catalyst for community involvement in positive social change D. Local and global communities are strengthened by a preference for fair trade products and services. E. Larger cooperative family bonds are strengthened
ENVIRONMENT A. Sustainable environmental practices are linked to Roanoke Natural Foods Co-op's goods and services. B. The natural environment is protected by use of green technologies and energy alternatives.
EDUCATION The cooperative community is informed about: A. Nutrition and health B. The Cooperative Business Model and cooperative principles C. Roanoke Natural Food Co-op's mission and ends D. Sustainable living
AGRICULTURE A. Roanoke Natural Foods Co-op consistently offers food products that are fresh, local, organic, sustainably-raised, non-GMO, humanely-raised, and cruelty-free. B. Farmland conservation and sustainable farming methods are supported.
ECONOMY
ROA NOK E
N AT U RAL
F OODS
CO - OP
A. Owners benefit from the well-being and profitability of Roanoke Natural Foods Co-op. B. Local producers, businesses and the community at large benefit from the presence & investment of Roanoke Natural Foods Co-op.
LOCAL ECONOMY
SALES TO OWNERS
The community at large benefits from the presence and investment of Roanoke Natural Foods Co-op.
Owners benefit from the well-being and profitability of Roanoke Natural Foods Co-op.
TOTAL 2014 DIRECT LOCAL ECONOMIC IMPACT
SALES 2014
$5,969,835
$1,955,553 This number includes our cost of goods, payroll, charitable contributions, and local government taxes. PROFITS 2014
$92,573
SALES TO OWNERS 2014
$2,992,783
50%
OF OVERALL SALES
OWNER EQUITY
$318,631
The number reported is before the CPA audit and patronge refund.
13.6% INCREASE OVER 2013
OWNER ONLY DISCOUNTS, SPECIALS & SALES $65,413 $33,199
$44,691
$45,082
$19,166 $5,015 2009
2010
2011
2012
2013
HEALTH The community has access to a selection of high quality, organic, and healthful foods and products which are reasonably priced.
OUR OWNERS SAY Based on our Annual Shoppers Survey of 509 shoppers conducted in August 2014. SATISFIED WITH PRODUCT SELECTION & VARIETY
SATISFIED WITH QUALITY & FRESHNESS OF PRODUCTS
95.3%
98%
2014
COMMUNITY OUR OWNERS SAY
FAIR TRADE
SATISFIED WITH KNOWLEDGEABLE STAFF
NUMBER OF FAIR TRADE PRODUCTS OFFERED
97.9%
267
96% FRIENDLY & COURTEOUS STAFF
95.6%
4.1%
OF PRODUCTS
OWNERSHIP Owners have a sense of pride of ownership and belonging. PERCENTAGE OF SALES TO OWNERS
50.13%
$2,992,783 TOTAL SALES TO OWNERS IN 2014
NUMBER OF NEW OWNERS
SUPPORTING CO-OPERATIVES Larger cooperative family bonds are strengthened. INVESTMENT IN OTHER COOPERATIVES
$54,198 This number includes yearly dues, equity investment and joint liability fund for National Co-op Grocers as well as yearly dues for The National Cooperative Business Association.
362 TOTAL OWNERS
3,919
70%
ACTIVE OWNERS
2,748
GIVE UP! PROGRAM We serve as a catalyst for community involvement in positive social change and social justice. TOTAL RAISED IN 2014 THROUGH GIVE UP! (12 ORGANIZATIONS BENEFITED)
$20,692
Supporting the important work of: Food for Thought, Apple Ridge Farm, Heritage Point Farm, Lick Run Farm, Reading Seeds, Historic Roanoke City Market, Appalachian Trail Conservancy, Roanoke Valley Greenway Commission, Radio Free Roanoke, Roanoke Valley SPCA, Habitat for Humanity, & Children's Trust.
R E P O R T
SATISFIED WITH ATMOSPHERE & AMBIANCE OF STORE
A N N U A L
Local and global communities are strengthened by a preference for fair trade products and services.
2 0 1 4
Community members have a welcoming and vital marketplace.
ENVIRONMENT
ROA NOK E
N AT U RAL
F OODS
CO - OP
A. Sustainable environmental practices are linked to Roanoke Natural Foods Co-op's goods and services. B. The natural environment is protected by use of green technologies and energy alternatives.
RAISING THE ANTE
E-WASTE COLLECTION
We contribute 5¢ to a local organization everytime our shoppers use a reusable shopping bag.
We partner with Goodwill Industries of Roanoke Valley to host an annual electronics recycling day.
BAGS DIVERTED FROM LANDFILL IN 2014
FALL ECO DAY E-WASTE COLLECTION POUNDS COLLECTED IN 2014
108,400
4,700
ENVIRONMENTAL OUTREACH We organized and partnered with other organizations in 2014 as environmental stewards. The co-op held two cleanup efforts at Wasena Park, organized a team for Clean Valley Council's annual Fall Waterways Cleanup, and hosted a drop off site for Fall ECO Day, which is our partnership with Goodwill Industires of Roanoke Valley that collects e-waste.
RECYCLING EFFORTS We recycle and compost as much as we can at our retail locations, offices & farm.
95,700
POUNDS COLLECTED SINCE 2010
CONSUMPTION We strive to reduce our energy usage year after year at our retail locations, offices & farm. ANNUAL POWER USAGE (KWH CONSUMED IN 2014)
476,318
-4.5%
COMPARED TO 2013
The solar modules at Heritage Point produce energy year round to offset some of our power usage. The modules and installation were donated by Direct Connect Solar & Electric.
RECYCLED MATERIAL DIVERTED FROM LANDFILL (IN CUBIC YARDS)
ANNUAL WATER USAGE
832
1,172,749
COMPOSTABLE MATERIAL DIVERTED FROM LANDFILL (IN POUNDS)
ANNUAL NATURAL GAS USAGE
15,600
5,824
(GALLONS OF WATER CONSUMED IN 2014)
(THERMS OF NATURAL GAS CONSUMED IN 2014)
-8.8%
COMPARED TO 2013
ANNUAL PROPANE USAGE
SUSTAINABLE PRACTICES We use compostable containers, recyclable plasticware, BPA-free paper for receipts. We also encourage our shoppers to recycle at our retail locations.
(GALLONS OF PROPANE CONSUMED IN 2014)
349.20
-46.39%
COMPARED TO 2013
EDUCATION The cooperative community is informed about: A. Nutrition and health
C. The co-op's mission and ends
THE CO-OPTIMIST
2 0 1 4
B. The Cooperative Business Model & cooperative principles D. Sustainable living
CO-OP CLASSES We offer year-round classes in our Community Room at the Grandin Co-op.
HOUSEHOLDS MAILED TO PER ISSUE
CO-OP SPONSORED CLASSES IN 2014
46
PER ISSUE DISTRIBUTION AROUND THE CITY AT 50+ LOCATIONS
ATTENDEES
R E P O R T
10,000
337
3,000 AGRICULTURE
A. Roanoke Natural Foods Co-op consistently offers food products that are fresh, local, organic, sustainably-raised, non-GMO, humanely-raised, and cruelty-free. B. Farmland conservation and sustainable farming methods are supported.
HERITAGE POINT URBAN FARM We own 17.5 acres of farmland within the City of Roanoke and lease another 7.4 acres, which is Heritage Point Urban Farm. We use exclusively sustainable farming methods.
2014 TOTAL PRODUCTION
$26,215
$16,487 2013 PRODUCTION
PRODUCT SELECTION
TOTAL NUMBER OF PRODUCTS
6619
A N N U A L
We publish a biannual newsletter, The Co-optimist, as a part of our educational outreach.
LOCAL
CERTIFIED ORGANIC
CERTIFIED CERTIFIED CRUELTY-FREE NON-GMO & HUMANELY RAISED
437
1906
693
786
6.6%
28.8%
10.5%
11.9%
2014 Income Statement Grandin
Downtown
Heritage Point
Admin
Consolidated
Net Sales Cost of Goods
5,561,041 3,372,879
382,579 244,857
26,215 7,051
0 0
5,969,835 3,624,787
Gross Profit Margin
2,188,162
137,722
19,164
0
2,345,048
Wages, Benefits and Taxes General Administrative & Occupancy
895,685 388,283 1,283,968
96,341 62,090 158,431
83,510 36,051 119,561
326,627 194,179 520,806
1,402,163 680,603 2,082,766
Net Operating Income Other Income Interest, Depreciation & Amortization
904,194 (42,206) (73,895)
(20,709) 0 (22,942)
(100,397) 2,808 (14,506)
(520,806) 0 (7,200)
262,282 (39,398) (118,543)
Net Income Federal & State Income Taxes
788,093
(43,651)
(112,095)
(528,006)
104,341 (11,768)
2012
Total Operating Expenses
92,573
Net Income before CPA Audit & Patronge Refund
2014 Balance Sheet Cash Receivables Inventory Other Current Assets Total Current Assets
247,986 0 330,367 20,823 599,176
Property and Equipment Other Assets Total Assets
889,216 40,761 1,529,153
Accounts Payable Accrued Expenses Other Current Liabilities Long Term Liabilities
248,796 31,778 67,017 221,761
Total Liabilities
569,352 318,630 641,171 959,801 1,529,153
Owner Equity Retained Earnings Total Equity Total Liabilities and Equity
Ne i gh b or h o o d Fo o d Since 1975
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