2015 Annual Report
good. local. food.
WHAT WE STAND FOR:
the mission e provide our community a place W to shop, gather, eat and learn by offering real food and sustainable products at reasonable prices through cooperative ownership and responsible commerce.
the ends he Merc Co+op will be a thriving T consumer-owned food co-op in our region that is on the forefront of: • Providing access to healthy, local, organic food and products; • Transforming and nourishing the health of our community; • Creating a robust, sustainable local food economy; and • Building a community based on hospitality, generosity and care for the environment.
renovation. rebrand. rebirth. BY JENNIFER ANANDA, JD, MSW
In the past year, the board spent considerable time ensuring that our co-op will remain strong and relevant, despite increased competition and continued mainstreaming of organic and local foods. In order to help us compete, the board approved a loan for the beautiful renovations you’ve seen in the store. Our owner loan campaign’s success is thanks to you, the owners.Your co-op received 41 loans for a total of $326,500! It is because of your commitment to the future of our co-op that it will continue to be your primary source for local and organic food with a fresher look and renewed commitment to you.
Of the many visible improvements to our store, there are just as many behind-the-scenes improvements that are equally important. For example, we invested in LED lighting and upgraded our HVAC system to conserve money and energy over time. We are also working with advisors at National Co+op Grocers to ensure that we are taking the steps necessary to keep our cooperative vibrant and sustainable for generations to come. The board spent time this year reassessing our Ends policies, the driving force of what we stand for and the gauge for which we hold management accountable. We look forward to the challenges of
The 2015 Board of Directors: Barbara Clark-Vice President, Mark Sprague, Ryann Waller-Treasurer, Marilyn Hull, Kelly Barth-Secretary, Jennifer Ananda-President, Denise DeTommaso
tomorrow, and we’re proud of the work that we’ve done in the past year. Owners are the reason we are profitable, and we hope you’ll join us as we continue to grow and evolve together.
WHAT WE VALUE
sustainability In an effort to increase the efficiency of our building, our 2015 renovations included improvements beyond those visible. By investing in a new HVAC and LED lights, the co-op earned an EPA Energy Star rating of 83-an increase of 30 points from 2014’s rating of 53-which means that our building now performs better than 83% of peer buildings.
83
ENERGY STAR RATING
28,304 POUNDS COMPOSTED
6.7%
ELECTRICITY REDUCTION
WHAT WE VALUE
local producers
Knapp Family Farms
SALES OF LOCAL PRODUCTS
$1.5M
# OF LOCAL PRODUCERS *
189
*Local producers are located within 200 miles of The Merc. Statistics in this report are for FY15 (7/1/2014 – 6/30/2015)
Mark Lumpe of Wakarusa Valley Farm
WHAT WE VALUE
community BOARD OF DIRECTORS
The garden at West Junior High
Deb Rake - President Vanessa Sanburn - Vice President Vickie Randel - Secretary Marianne Wille - Treasurer Dennis “Boog” Highberger Nan Harper Judy Paley Bruce Passman Nancy O’Connor - Executive Director
$3,000
SCHOOL GARDEN PRODUCE PURCHASED BY THE MERC CO+OP
3,000 lbs
HARVESTED FROM GFGH STUDENT GARDENS
5
STUDENT GARDENERS EMPLOYED BY THE MERC CO+OP
Elise Gard, a student gardener for Growing Food Growing Health School Garden Project
a focus on education and outreach BY NANCY O’CONNOR, DIRECTOR OF EDUCATION AND OUTREACH
On the first page of this report you’ll see the newly crafted Ends, representing what The Merc Co+op stands for and what drives our work. Underpinning this work, and also differentiating us from our competitors, is our deep commitment to transforming and nourishing the health of our community; and building a community based on hospitality,
2,648 CO-OP CLASS ATTENDEES
Chef Nancy Stark in the co-op’s kitchen
generosity and care for the environment. Through our many outreach efforts, donations, class program, Change and the school garden project with our sister organization, Community Mercantile Education Foundation, we embrace this commitment. We need only to look at the inspiring pictures of our student gardeners in the Merc Café or the picture of Elise proudly holding up tomatoes destined for the school cafeteria to know we are making a difference in our community. By being an owner of The Merc Co+op you help us build and nourish this transforming relationship.
change Change For Our Community gives shoppers the opportunity to donate their change to local organizations every time they shop by rounding up their purchase, via change jars or by donating 5¢ bag refunds. Each month, a different organization is featured as the recipient and 100% of all donations collected are given to that organization.
FY15 change recipients • CENTRO HISPANO • GREEN WISH • KANSAS ASSOCIATION FOR CONSERVATION & ENVIRONMENTAL EDUCATION • WILLOW DOMESTIC VIOLENCE CENTER • COMMUNITY VILLAGE OF LAWRENCE • HOLIDAY ADOPTED FAMILY • GA DU GI SAFE CENTER • JAYHAWK AUDUBON • • • •
VAN GO INC. COURT APPOINTED SPECIAL ADVOCATES GROWING FOOD GROWING HEALTH THE LIGHT CENTER
$28,441 RAISED DURING FY15 FOR CHANGE FOR OUR COMMUNITY
WHAT WE VALUE
employees
employee tenure less than two years two to five years six to 10 years more than 10 years
Daiyna - co-op employee since 2008
121 EMPLOYEES
80%
ELIGIBLE FOR HEALTH INSURANCE BENEFITS
$3.19M
IN WAGES AND BENEFITS PAID TO EMPLOYEES
For the first time ever I really want to stay with a job for a long time, and grow with it. I love the Merc! Merc Co-op Staff Member, 2015 STAFF SURVEY
WHAT WE VALUE
owners
The Lai family, owners since 2010
352
NEW OWNERS
7,019 TOTAL OWNERS
61%
SALES FROM OWNERS
Colby - co-op employee since 2014. Sharyn Harley is a frequent shopper and owner of OmTree Shala.
KEY FINANCIAL DATA
expense overview 62.16%. . . . . . . . . . Cost of Goods
financial report balance sheet
23.54%. . . . . . . . . . . . . . Personnel
BALANCE SHEET
2015
2014
2013
2012
2.97%. . . . . . . . Misc Dues & Taxes
ASSETS
2015
2014
2013
2012
Current Assets
$1,142,161
$1,278,460
$1,212,406
$1,361,182
Property & Equipment
$3,497,343
$2,979,781
$3,148,438
$1,565,123
$212,245
$160,647
$124,134
$106,575
$4,851,749
$4,418,888
$4,484,978
$3,032,880
956,219
$908,962
$852,011
$506,880
Long Term Liabilities
$1,612,833
$1,481,679
$1,758,340
$701,405
Total Liabilities
$2,569,052
$2,390,641
$2,610,351
$1,208,285
Common Stock
$526,461
$508,161
$487,311
$452,661
Retained Patronage
$709,073
$579,361
$524,705
$524,705
Retained Earnings
$1,047,163
$940,725
$862,611
$847,229
Total Equity
$2,282,697
$2,028,247
$1,874,627
$1,824,595
Total Liabilities & Equity
$4,851,749
$4,418,888
$4,484,978
$3,032,880
6.33%. . . . . . . . . . . . . . Occupancy 0.24%. . . . . Education & Outreach
Other Assets
2.75%. . . . . . . . . . . . . . . Marketing
Total Assets
2.01%. . . . . . . . . . . . . . . . . . . Profit
LIABILITIES Current Liabilities
financial impact
$13,346,633 TOTAL SALES
48%
RETAINED IN THE LOCAL ECONOMY
EQUITY
patronage Patronage rebates are a portion of the net profit that the co-op makes from purchases returned to you, the owners. It is one of the benefits of owning a share of the co-op. In addition, patronage is beneficial to the business. The Merc Co+op will save over $70,000 in taxes for 2015 by distributing patronage to our owners. Owners with more than $238 of purchases recorded through our point-of-sale system between July 1, 2014 and June 30, 2015 received a rebate.
$35,000 RETURNED TO OWNERS
3,764
OWNERS RECEIVED A REBATE
Fresh-picked beets from Juniper Hill Farm
$118,000
SAVED THROUGH OWNER DISCOUNTS
good. local. food 901 Iowa • Lawrence, Kansas 66044 themerc.coop • 785. 843.8544
On the front cover: Carrots harvested from Wakarusa Valley Farm On the back cover: Juniper Hill Farms