2021 Coborn's Midwest ROY

Five generations of family values

Grocer has grown from one location in Sauk Rapids to 120 across region

For 100 years, members of the Coborn family have been going way beyond just meeting the needs of communities’ needs for groceries. Along the way, it has defied the odds and is now five generations strong.

According to “Behind the Store Shelves,” a book that traces the history of Coborn’s, “Only one-third of family businesses survive into the second generation and a mere 12 percent are still viable into the third generation. As fourth-generation leaders of the Coborn’s business, Chris and Mark Coborn (who retired as EVP in 2012) represent a mere 3 percent.”

In 1921, Chester A. Coborn opened his first store in Sauk Rapids, Minnesota. Today, Coborn’s Inc. boasts more than 120 grocery, convenience, liquor and other retail locations throughout the Midwest and employs some 9,000 people.

The Shelby Report

of the Midwest 2021 Retailer of the Year

His sons, Chester C. and Duke, became involved at a young age and took over the business in their 20s when their father died in February 1929. Chester C., known as Chet, was 26 at the time and Duke was 25.

In 1959, Duke’s four sons – Bob, Dan, Bill and Ron –assumed control after their father’s death.

Dan Coborn, former chairman, president and CEO of Coborn’s Inc., passed away in March 2017. He is recalled as a beloved monumental figure in the company timeline. He led the chain for a greater part of the 20th century, serving as its chief executive from the late 1950s until 1999.

Per the history book, “The Coborn brothers began to develop a philosophy of being fast-thinking and making light-footed decisions. It would later allow them to thrive and become one of the most progressive independent grocery chains in the nation.”

The book continues, “In the early years, the Coborn’s culture naturally developed through the example set by Dan and his brothers. But as the workforce grew, the company made it its mission to not only be the best place to shop, but also the best place to work – in every market it serves.”

However, in the 1970s, that meant taking on varying tasks and making decisions before they had all the answers or knew where the path would lead. The company was becoming a leader in the industry, testing markets and taking chances that were rare for independent grocers.

“Each brother had an area of responsibility and they voted on every decision – and had an understanding that any major decision for the company required a unanimous vote,” the book explained.

Dan’s leadership in the grocery business and commitment to both his customers and community made him among the first to be recognized as Grocer of the Year by the Minnesota Grocers Association in 1987.

“Dan Coborn had made good on the debt he incurred to fund the company’s aggressive growth – all the while grooming the next generation of family leadership in his son, Chris Coborn, who would eventually lead the company through its most aggressive growth,” according to the history book.

Along with being a dynamic leader, Dan proved to be personable with employees of all levels at the company.

“Employees knew they could go to Danny with anything,” said his widow, Mabel. “He would keep it private and he would do whatever he could to help them out. They knew they could count on us and we knew we could count on them.”

Dennis Host, VP of marketing of during the latter part of Dan’s tenure, shared how management would gather for weekly meetings.

“When we were still in our old office, we’d have Friday morning huddle meetings that included a large group of company management to keep everyone informed of the

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Dan and Mabel Coborn

Chris Corborn (seated) with his son, Peter, and daughter, Emily.

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varying projects we were all working on, and Dan would occasionally join us. By then he was walking with a cane... but he was sharp as a tack…an incredible man and remarkably sharp.”

Chris took the helm as president in 1999 and chief executive officer in 2007, becoming the fourth generation to lead his family’s company.

“Over 40 years I’ve been here full time and we still have lots of unfinished work. We’re trying to be a better operator and better merchant to our communities and our customers or guests,” he said.

“But we also want to diversify so that we have more staying power as an organization and more opportunities more ways. To grow within the organization, as well as grow as an organization in these communities.”

That growth from the associate level continues to Emily, Chris’ daughter, who started working at Coborn’s as a cashier when she was in high school and in need of gas money. She stayed on throughout college, where she studied communications.

A few years later, she joined Coborn’s in 2011 as

communications manager before serving as director of Topco program management and district manager for Coborn’s, per the history book. She was also instrumental in building the partnership between Coborn’s and Second Harvest Heartland’s food rescue program.

Chris’s son, Peter, also works for the company, serving as director of pricing strategy. While the technologies in grocery have changed, Peter maintains his great-great-grandfather’s

(Chester A.) mission of keeping the customer in mind. Both Peter and Emily continue the legacy of family mentorship.

“It is rare that a person has the opportunity to work so closely with their father for most of their life,” Chris said in the book. “I was blessed to have had my dad be such an influential personal and professional mentor. He was absolutely extraordinary.”

1970s Corporate Managers

Company executives accept The Shelby Report’s Midwest Retailer of the Year Award. From left: Dennis Host, VP/Marketing; Jim Shaw, EVP and CFO; Troy Vosburgh, VP/Fresh; Emily Coborn, VP/Operations Eastern Region; Chris Coborn, Chairman, President and CEO; Marti Sunderlin, Director Center Store Merchandising; Andy Knoblauch, VP/Center Store; Dave Meyer, COO.

2021 Retailer of the Year

The Golden Rule remains guiding force

Not afraid to take risks, company has remained at forefront of innovation

The history of Coborn’s Inc. is one of upbringing and extensive trials and lessons learned, all of which have propelled aggressive growth and transformation.

Ever since the Coborn family planted roots in Sauk Rapids, Minnesota, it has nurtured a vision driven by values grounded in a concern for the broader community, according to the company’s history book, “Behind the Store Shelves.” This ongoing tradition is upheld by “Coborn’s Golden Rule – treat all with dignity and respect.”

Chester A. Coborn opened his first store in 1921.

“Since beginning as a small produce market, the company has mushroomed into a multi-site supermarket, liquor and convenience retailer and an industry leader,” per the company’s website. “A Coborn’s paycheck supports nearly 8,000 employees in communities throughout six states.”

Chester A. committed early to taking an unconventional approach with the store and published his business policy for 1922 in the local newspaper. He was committed to buying his goods for the best possible price and passing along the savings to his customers. He made this public pledge: “To sell those groceries to our customers at reduced prices that allow us a smaller margin of profit than has ever before been done.”

The Coborn family built a tradition of helping neighbors. This became readily apparent during the Great Depression, when many did not have enough money to buy food. In

1929, sons, Chester C. (known as Chet) and Duke took over the business after the death of their father.

The Coborn brothers, extended credit to all customers and asked them to pay their bills as resources became available, carrying on their father’s legacy. “They didn’t want people to go without food,” recalled Duke’s son, Dan Coborn.

Per the history book, “During its first two decades in business, Coborn’s expanded in size and selection beyond what was common for grocers at the time. The growth and changes were driven as much by economic necessity and survival as it was the Coborn family’s commitment to ingenuity.”

With families regaining their footing in 1941, Duke initiated plans for a major expansion that would double the store’s size.

“He also brought in new checkout counters and introduced the first shopping carts at the store,” the book reads. “A pioneer in the grocery industry, he became the first to sell homemade sausage and operated one of the two main meat processing plants in the area.”

His strong relationships with farmers often made him the first call, especially for processing sought-after veal. Coborn’s also had become a supplier in the meat business –processing and selling meat to other area markets.

Duke had four sons – Bob, Dan, Bill and Ron – who began running the business after he passed away in 1959. Dan led the company for most of the 20th century, serving as CEO until 1999.

As competition increased, Chet and Duke moved their growing grocery store in Sauk Rapids to a larger space across the street and opened Coborn’s Ben Franklin Variety Store in the 1930s. Surviving the Depression showcased the sheer determination of the brothers. It also began to unlock doors of opportunity.

In 1936, Coborn’s was among the first grocers in the nation to add a walk-in cooler and to include a meat market as a part of the business.

Early in 1960, the Coborn brothers began developing a growth strategy. “They based it on market opportunities and demographic studies of niche markets where they believed they could be the dominant grocer,” according to the history book. Nearby communities in Minnesota and surrounding states caught their attention. They sought to expand quickly and believed acquisitions provided the best path.

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Chester A. Coborn, Duke Coborn, Chester C. “Chet” Coborn –Sauk Rapids, Minnesota –circa 1920s.

Coborn’s first store on Benton Drive in Sauk Rapids, Minnesota, circa the 1920s.

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The book continues, “Changing consumer habits and more women in the workforce triggered significant changes in the grocery industry in the 1980s. Stores not only got bigger, but also offered more services focused on providing one-stop shopping for customers. More competitors sought the grocery store dollar and Coborn’s responded with a diversified portfolio and bold moves to deliver customers with more convenience and value.”

Fast forward to the company’s centennial anniversary, each store continues to serve as an economic engine in its area.

“Each grand opening represents more jobs and more opportunities to give back to the communities Coborn’s serves,” according to the book. “Whether it’s a newly built Coborn’s store in St. Joseph, Pipestone or Jamestown or a Cash Wise store in Watford City or Minot, the company drives local commerce and job creation. Coborn’s now supports some 9,000 employees throughout the upper Midwest.”

Every generation of the Coborn’s family has faced its own challenges in the business. For Chester C. and Duke, it was war, rations and recovery. For Duke’s grandson, Chris, it’s been the rise of technology, an exponential growth in information and a demand to diversify like never before.

The future for Coborn’s is a blank slate, per the history book. “Leaders admit they cannot even begin to imagine what the next 20 years in the grocery retailing business will bring.”

The industry continues to evolve with online retailers and new store formats emerging, trends that have only accelerated during the COVID-19 pandemic. Fifthgeneration leader Emily Coborn, VP/Operations Eastern Region, noted the company must stay ready to adapt.

“We have to be innovative and take calculated risks if we’re going to thrive,” she said.

To view the full history of Coborn’s Inc., visit www.coborns. com/100years.

Marketplace Foods store in Rice Lake, Wisconsin (from left); Cash Wise Foods store in Fargo, North Dakota; Coborn’s in St. Cloud, Minnesota; one of the company’s trucking fleet, decked out for the company’s 100th anniversary in 2021.

2021 Retailer of the Year

‘OneTeam,’ yet so many stars

Coborn’s Inc. takes a team approach, with several moving parts in various departments. As the company’s history book, “Behind the Store Shelves,” notes: “So much of what makes the company so successful are the dedicated employees who work behind the scenes.”

“From our distribution center, centralized bake shoppe, trucking and logistics, I.T. department and customer relations call center, central pharmacy…these departments play a critical role in serving our guests and our stores. These behind-the-scenes employees are exemplary examples of ‘One Team,’ with a commitment and dedication to serve our customers 365 days a year.”

Trucking and logistics

Covering Minnesota, Wisconsin, North Dakota and South Dakota, the trucking and logistics departments at Coborn’s consists of 80 over the road drivers, 34 warehouse professionals and a maintenance team of five.

The company’s trucking workforce includes first-, second- and even third-generation employees. In addition, it boasts four women on the team – statistically a higher ratio than those of other fleets. “Coborn’s owns its fleet of 37 semi-tractors and 90 trailers,” the book adds.

The company operates a private fleet so it can set its own urgency and priorities.

“In 2020, drivers traveled over 3.8 million miles delivering prod ucts daily,” per the book. “The fleet operates 24/7 with the exception of major holidays.”

Warehouse team

Coborn’s warehouse team plays an equally important role in overseeing products at its distribution center in St. Cloud, Minnesota. Semi-trucks are dispatched from this location, which serves as a central hub for many products. The distribution center also houses its own maintenance depart ment with mechanical support.

The team maintains the entire truck ing fleet, services industrial-powered warehouse equip ment and repairs store material handling equipment, such as forklifts and other machines used primar ily in store backrooms.

Bake Shoppe

Coborn’s central bakery facility, known as the “Bake Shoppe,” provides baked goods for all of the company’s retail locations. The program was established in 1975 at the Sauk Rapids flagship store, with an additional bakery added in 1977 at Little Falls. The largest store bakery opened in 1982 at the Waite Park Cash Wise.

To meet production demands, a centralized location was established in 1989, which officials say has improved quality, consistency and efficiency. The full-line bakery provides 60 percent of products sold at retail locations. Experienced bakers create assortments of buns, breads, cookies, donuts, specialty cakes and cupcakes and adapt to seasonal decorating.

Products are delivered fresh to 51 Coborn’s, Cash Wise and Marketplace locations, most of them same day, across Minnesota, North and South Dakota and western Wisconsin.

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The Bake Shoppe operates 24 hours a day, Monday through Friday, with limited scheduling on weekends. The Bake Shoppe has a very diverse workforce and works together, every day, to produce a quality product for the stores.

Call center

Behind most companies are voices to help, which is where this grocer’s call center comes in.

The team still operates from the New Hope, Minnesota, location and supports both online and in-store guest expe riences across Coborn’s, CashWise, Marketplace Foods and Hornbacher’s stores.

Customer phone calls, primar ily about e-commerce orders, as well as email responses to shoppers, social media monitoring and responses and online reviews are fielded by trained specialists.

The call center is the centralized hub for most customer outreach, assisting with online account activation, e-commerce orders, curbside and delivery order fulfillment, just to name a few. This operation is staffed from 8 a.m.-8 p.m. Monday through Friday and 10 a.m.-6 p.m. on weekends.

“The call center is instrumental in supporting the company and our guests as more and more households adopt grocery shopping online as a way of life,” the book reads.

“The team’s commitment to solving servicerelated questions, one guest at a time, is what makes them remarkable.”

Technology and opportunity

Coborn’s prides their grocery stores for having come a long way. “What started as a small general store stocked with produce has grown into a large supermarket, fuel, liquor

and convenience operation and a highly respected leader in the industry,” the story reads. “Today, our locations are practically warehouses that require significant technology infrastructure to operate in the 21st century.”

Once Coborn’s started deploying personal computers, receiving and item file management software for tracking product receipts, costs and retails made product management much more efficient.

Before their first IBM PC AT, Coborn’s was dependent on what suppliers recommended for pricing. “With this new technology, managers had more control of pricing. In the mid-1980s, accounting wanted programming that would aid in their management on the company’s financial reporting.”

The information technology continues to evolve and play a critical role in how Coborn’s, Inc., operates. The I.T. department has transformed from a one-employee operation to a department of 52 professionals that handle issues every day, from computer glitches to a 24/7 help desk that assists store associates, distribution, call center and corporate employees through a multitude of technology issues at any given moment.

Long-tenured employees can be found throughout the various departments. In fact, many workers have been with the company for decades. As of May 2013, according to the history book, nearly 1,300 employees had been with Coborn’s for at

Such loyal service presents opportunities for career development. The Leadership Enrichment and Acceleration Program has aided Mary Kruck, Cooper Ave. store director, and Sarah Putnam, director of operations. Both began at the associate level and now reflect the diversification of leadership in the retail grocery industry.

“To see where we’ve come now in that strength of female leadership, it’s pretty cool,” Kruck said. In the bigger picture, COO Dave Meyer spoke to a structure that infuses not only goal setting, but accountability and communication.

“It all starts with having that playbook that everybody knows what page you’re on, right? Communication, because until it gets to the newest employee of the company, we can’t be as successful as we will be,” Meyer said.

2021 Retailer of the Year

Philosophy of giving back seen in every store

Coborn’s Inc. lives by the mantra of “Be the Best,” however that goes much farther than having competitive prices and diverse products on the shelves.

“If you do well as a business, you should share it with those who have made you successful,” said the late Dan Coborn, a third-generation leader of the company, in its history book “Behind the Store Shelves.”

Doing good is a part of doing business at Coborn’s and has led to a series of projects and programs focused on giving back. It’s a part of what Dan called the Coborn’s Golden Rule, to “treat all with dignity and respect.” It’s a rule his father, Duke Coborn, passed on to him.

The company annually donates more than $2.5 million and thousands of volunteer hours toward making a difference in the communities it serves. Being a servant is something that carried on from the beginnings of Coborn’s.

In the 1900s, Dan’s grandfather, Chester A. Coborn, demonstrated his civic service and involvement in local humanitarian aid efforts. He became the mayor of Sauk Rapids, Minnesota, in 1921, the same year he opened the first Coborn’s store. And he always did what he could to help the people of his community, which included extending credit beyond the norm to those in need.

Dan carried on his family’s legacy, serving on the Sauk Rapids School Board for many years. “He went on to take on various leadership roles and is credited for driving some significant changes in his local community,” the book reads.

Current President and CEO Chris Coborn has followed his father’s lead, joining the board of nearby St. Cloud Hospital in 2009. With his involvement, the hospital completed its largest capital expansion. This $225-million addition transformed the hospital, creating private rooms, doubling surgical suites and adding new high-risk pregnancy and intensive care services.

Coborn’s generosity and

commitment to philanthropy became most visible through its active involvement in United Way. Dan and Mabel Coborn became charter members of the Central Minnesota Chapter of United Way in 1967. Since then, the company has an organized a workplace program focused on encouraging every employee to donate to the cause.

Coborn’s became a pacesetter for United Way of Central Minnesota in the early 1980s, always focused on raising the bar. In 1984, 83 percent of the company’s 512 employees, including part-time cashiers and baggers, helped raised $22,400 for the local United Way. Employee participation at some stores was 100 percent. The following year, 92 percent of all employees helped raise more than $26,600. As the company has grown, so has its campaign efforts.

Coborn’s now consistently provides more than $250,000 annually to local United Ways. The company and its employees raised some $362,000 in 2012, according to the history book.

Throughout the community, Coborn’s has been a strong supporter of Catholic Charities, Boys & Girls Club, Big Brothers Big Sisters, the YMCA, March of Dimes, American Heart Association Annual Heart Walk and American Cancer Society’s Relay for Life.

The company also has made college scholarships among its regular giving areas, donating more than $25,000 to students in the communities it served in 2012. That follows other significant gifts, including a $1 million gift to the College of St. Benedict and St. John’s University in 2004.

Through the Bill and Joyce Coborn Memorial Scholarship Fund at the Central Minnesota Community Foundation, Coborn’s provides scholarships to its employees and their

Coborn’s volunteers and family members escort World War II veterans around the Vietnam Memorial in Washington, D.C. The visit was part of a company-sponsored Honor Flight in 2011

dependents in the pursuit of private high school or postsecondary education. The fund awards 10 $1,000 scholarships annually.

The generosity doesn’t stop there. Coborn’s gave a landmark gift to CentraCare Health System, allowing the organization to move medical and radiation oncology services from St. Cloud Hospital and CentraCare Clinic in 2001 and build a customized cancer center at CentraCare Health Plaza in north St. Cloud.

The establishment of the Coborn Cancer Center has led to dramatic growth and expansion of cancer care services in Central Minnesota.

“Coborn’s contributions are life-changing for the estimated 22,000 cancer survivors and for the more than 1,400 new cancer patients that the Coborn Cancer Center will see each year in its regional market,” said Mark Larkin, executive director of the CentraCare Health Foundation in the history book.

Chris Coborn added that, “The Coborn Cancer Center provides comprehensive, multidisciplinary care and an extensive range of treatments right here in Central Minnesota so that cancer patients and their families can stay close to home while receiving treatment. That proximity to home is invaluable.”

The company’s fundraising support includes events

such as the annual Grocers on the Green golf tournament, co-sponsored with one of Coborn’s vendor partners, Kemps. The annual event consistently raises six figures and has supported pediatric cancer support efforts at the Coborn Cancer Center.

“The $1.1 million raised in the event’s first decade allows children and their families to stay close to home while receiving treatment and helps fund professional child-life specialists, who work with pediatric patients and their families,” according to the history book.

Based in hockey-mad Minnesota, Coborn’s is generous in other areas as well. Through the years, the family has provided landmark support for key programs and projects, including a $1.5 million gift to St. Cloud State University for the expansion of the National Hockey & Event Center.

While not his alma mater, Chris recognized the facility’s important place in the community and the opportunity to turn the well-regarded hockey center into a entertainment venue.

The company and its employee-owners always look for opportunities to make giving a part of doing business. This also applies to fighting against food waste. Coborn’s partnership with Second Harvest Food Bank and local food shelves is just one example of that.

The company’s stores have provided millions of pounds of food to Second Harvest Heartland local food shelf affiliates, which deliver millions of meals to families in need. This includes food that may not meet appearance standards or is close-dated.

The Coborns’ drive to give even spans into those that were willing to make the ultimate sacrifice. On September 20, 2011, just about a week after the 10th anniversary of the 9/11 terrorist attacks, Coborn’s honored World War II veterans from Central Minnesota by taking 100 of them as guests on an Honor Flight to Washington, D.C.

“The philosophy of giving back that has become engrained in the company’s culture is seen in every store the company operates,” according to the history book. “Store

management teams are encouraged to be active in service organizations in their communities. Each store’s and the company’s participation rates are measured and reported annually each year.

“Although this philosophy is company endorsed, it has a grassroots feel. It is almost infectious with individuals looking for their own ways to give back and being recognized in their own communities for their creativity, leadership and impact.”

Coborn’s Grocers on the Green Golf Tournament has provided more than $1 million in support to pediatric cancer patients over the past 19 years.

Behind the scenes: Support Pharmacy

Coborn’s Support Pharmacy has become a vital platform for the company’s Minnesota pharmacy locations.

When the company’s Sauk Rapids store was remodeled in 2019, a robust automated prescription dispensing system was added in space created in the store’s backroom to house this modern-day marvel of technology,” according to the company’s history book, “Behind the Store Shelves.”

About 35 percent of all of the company’s prescription dispensing is handled through this single facility.

According to the book, “Currently running at 98 percent efficiency, the CSP is almost at maximum capacity for daily volume but designed for expansion. Additional equipment can be added to increase capacity, which ensures labor and inventory cost savings now and in the future. Since the opening of the CSP in June 2019, the operation has grown to fill roughly 17,000 prescriptions every week.”

To remain competitive in the industry, the company invested in a centralized dispensing system to reduce the overall cost to serve and provide the best possible guest experience to every customer filling a prescription at one of our pharmacies.

Additionally, the facility provides a framework upon which the company can expand central services to fill more prescriptions.

At a glance: Acquisition of Hornbacher’s stores

In late 2018, Coborn’s Inc. acquired Hornbacher’s from Supervalu, expanding the company’s footprint in the growing markets of Fargo, North Dakota, and Moorhead, Minnesota.

The Hornbacher’s stores run relatively independent of the rest of the company’s other 51 grocery stores and have a separate leadership team.

Matt Leiseth serves as president of the Hornbacher’s division and also serves as a VP of Coborn’s Western Region, overseeing all of the company’s Cash Wise stores in North Dakota.

Hornbacher’s success over the past 70 years is the direct result of loyal, dedicated and hard-working employees. The chain employs more than 1,200 in their eight stores.

At the time of the acquisition, Coborn’s Chairman, President and CEO Chris Coborn stated: “We saw this as an opportunity to further invest in the thriving Fargo-Moorhead area with Supervalu exiting the retail business. Hornbacher’s is a highly respected grocery retailer, they’re doing everything right. We intend to let them continue operating as-is so there is no change to their guest experience.” That commitment continues today.

Added Leiseth, “We went from Wall Street to Main Street when Coborn’s acquired the Hornbacher’s stores. Our values align in supporting our team along with a strong commitment serving our local communities. We have continued to grow and thrive and appreciate the commitment to excellence we have under Coborn’s Inc.’s ownership.”

Employees monitor the company’s robotic prescriptiondispensing system to ensure quality control and accuracy and route-filled prescriptions to the company’s in-store pharmacies.

Hornbacher’s store, with an attached Wine and Spirits location, was built in 2018 in West Fargo, North Dakota.