2016 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: • P roviding access to healthy, local, organic food and products; • T ransforming and nourishing the health of our community; • C reating a robust, sustainable local food economy; and • B uilding a community based on hospitality, generosity and care for the environment.
stronger together BY JENNIFER ANANDA, JD, MSW, BOARD PRESIDENT
The Board of Directors would like to thank our owners for helping illustrate how a local food co-op can continue to remain relevant in a highly competitive conventional marketplace. While sales declined slightly with the onset of more competition, the organization prepared for this setback and managed the business responsibly. In doing so, the Board approved a $16,246 patronage rebate distribution. Since rewriting our Ends in 2015, the general manager has implemented a quarterly Ends Report which allows us to track the progress the co-op is making to support and live the Ends. What we’ve seen is an
incredible decrease in electricity use, a noteworthy increase in local purchases within our deli, a strengthening participatory donation program and so much more. It has not been easy work, but with strong, enthusiastic staff bolstered by the support of National Cooperative Grocers (NCG), together, we continue to make it possible. As a board, it is our responsibility to take a bird’s eye view of the overall health of the co-op, to consider our future and to create a vision toward that future. We want to ensure that The Merc Co+op continues to generate positive impact in our community
The 2016 Board of Directors: Jennifer Ananda-President, Ryann Waller-Treasurer, Kelly Barth-Secretary, Mark Sprague, Denise DeTommaso, Barbara Clark-Vice President, Daniel Poull.
and engages the diverse voices of our ownership regularly. In turn, we ask that you-our owners-continue to support your co-op’s growth in the coming years. Shop here, share your feedback and help us grow and appreciate our many owner voices together!
C ARE FOR THE ENVIRONMENT
sustainability The Merc Co+op has reduced energy usage for four consecutive years, decreasing our carbon footprint and keeping our electricity costs in check. This rare accomplishment was achieved through some initial infrastructure investment as well as routine data tracking, goal setting and preventative maintenance. Following the changes we made, and after just one quarter of preventative maintenance, our Environmental Protection Agency Energy Star rating improved. Where most co-ops’ electricity use tends to increases at about 4% per year, your co-op has been able to reduce consumption by an average of 7% per year over four years.
30%
TOTAL ELECTRICITY REDUCTION SINCE 2012
$70,000
APPROX. ANNUAL ENERGY SAVINGS
480,000
PAGES OF PAPER SAVED BY TRANSITIONING TO QUARTERLY NEWSLETTER (WITHIN FY 2016)
For our work in energy reduction, we were a 2016 recipient of NCG’s Co+efficient Sustainability Star award and we were nominated for a New Hope excellence award for sustainability.
ANNUAL ENERGY USE TRENDS The Merc Co+op Average Co-op
2,000,000 kWh
1,500,000 kWh
1,000,000 kWh
500,000 kWh
0 kWh
2012
2013
2014
2015
2016
ROBUST, SUSTAINABLE LOC AL FOOD
supporting local LOCAL PURCHASES
$1.15M
# OF LOCAL PRODUCERS *
196
INCREASE IN LOCAL FOOD PURCHASES BY CO-OP DELI
22%
AVERAGE DISTANCE OF LOCAL PRODUCERS (IN MILES)
30.5
*Local producers are located within 200 miles of The Merc.
Rosanna Bauman of Bauman’s Cedar Valley Farms
Statistics in this report are for FY16 (7/1/2015 – 6/30/2016)
BOARD OF DIRECTORS Vanessa Sanburn, President Bruce Passman,Vice President Vickie Randel, Secretary Marianne Wille, Treasurer Nan Harper Dennis “Boog” Highberger Judy Paley Deb Rake Helen Schnoes Nancy O’Connor, Executive Director
Growing Food Growing Health (GFGH) is a project of Community Mercantile Eduction Foundation (CMEF), a non-profit sister organization to The Merc Co+op. CMEF is dedicated to improving the health of youth by creating school gardens that act as living classrooms, inspire hands-on education, connect students to locally grown fruits and vegetables, and supply school cafeterias with healthy produce. Now in it’s seventh year, GFGH tends over 14,000 square feet of gardens on school grounds.
a focus on education and outreach
TRANSFORMING AND NOURISHING THE HEALTH OF OUR COMMUNITY
BY NANCY O’CONNOR, DIRECTOR OF EDUCATION AND OUTREACH
Part of The Merc Co+op’s mission is to provide our community a place to gather and learn. In FY 2016 over 6,000 community members did just that through our extensive Education and Outreach programs. Our on-site classes provide an opportunity for people to learn about everything from gluten-free eating to ethnic cuisines. There are food and wine pairing classes and hands-on opportunities for little people to get in the kitchen. Outside the walls of our co-op we gather at health fairs, in school classrooms, at libraries, to carry education outside our store. We talk to W.I.C. clients about healthy food choices and to high school students about sustainable agriculture.
We reach out with information and tasty food samples to welcome and nourish our extended community. In partnership with our sister organization, Community Mercantile Education Foundation (CMEF), we grow school gardens that feed hundreds of people - in school cafeterias and through the sale of produce to the co-op’s deli and produce departments. Our Student Gardeners greet co-op shoppers with samples of Merc Made pie made with sweet potatoes that they grew at West Middle School. More importantly, they connect shoppers to where their food comes from and tell the story about the honorable work of growing food.
17,800+ lbs HARVESTED SINCE BEGINNING OF GFGH
CLASS ATTENDEES 2,900 2,800 2,700 2,600 2,500 2014
2015
2016
change for our community
BUILDING A COMMUNITY B ASED ON HOSPITALITY AND GENEROSITY
owners
Our Change program gives shoppers the opportunity to donate 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. Thank you for your continued support and generosity!
NUMBER OF MERCSHARE OWNERS 300 200 The Natarajan family have been co-op owners since 2008.
100 0 2014
7,302 TOTAL OWNERS
$135,748 TOTAL OWNER DISCOUNTS
61%
SALES TO OWNERS
2015
2016
Our MercShare program helps to reduce the cost barriers to ownership and healthful eating, and to provide practical solutions that don’t sacrifice values or budgets. Shoppers currently enrolled in Kansas food assistance programs are eligible for a MercShare ownership subsidy; and, co-op owners are eligible for MercShare+, a 10% discount on all purchases.
RAISED & DONATED THROUGH CHANGE $40,000 $30,000 $20,000 $10,000 $0 2014
2015
2016
employees
Kelly, Center Store Wellness Buyer, as worked at the co-op 2010.
117 EMPLOYEES
$3.19M
WAGES AND BENEFITS PAID TO EMPLOYEES
Top 3
VOTED BEST EMPLOYER (100+ EMPLOYEES)
Zydeco Tougeau at our Grand Reveal on September 12, 2015
KEY FINANCIAL DATA
expense overview 62.43%. . . . . . . . . . . . Cost of Goods 24.11%. . . . . . . . . . . . . . . . Personnel 2.92%. . . . . . . . . . Misc Dues & Taxes 6.48%. . . . . . . . . . . . . . . . Occupancy
balance sheet BALANCE SHEET ASSETS Current Assets Property & Equipment
0.25%. . . . . . . Education & Outreach
Other Assets
2.41%. . . . . . . . . . . . . . . . . Marketing
Total Assets
1.40%. . . . . . . . . . . . . . . . . . . . Profit
LIABILITIES
$12,644,533 TOTAL SALES
TOTAL EQUITY
Current Liabilities
2015
2014
2016
2015
2014
$992,264
$1,142,161
$1,278,460
$3,356,370
$3,497,343
$2,979,781
$228,279
$212,245
$160,647
$4,576,913
$4,851,749
$4,418,888
$778,565
956,219
$908,962
Long Term Liabilities
$1,345,149
$1,612,833
$1,481,679
Total Liabilities
$2,123,714
$2,569,052
$2,390,641
Common Stock
$544,536
$526,461
$508,161
Retained Patronage
$776,239
$709,073
$579,361
EQUITY
Retained Earnings
$1,132,424
$1,047,163
$940,725
$2.5 M
Total Equity
$2,453,199
$2,282,697
$2,028,247
$2.0 M
Total Liabilities & Equity
$4,576,913
$4,851,749
$4,418,888
$1.5 M $1.0 M 2012
2013
2014
2015
2016
Barbara Clark of Maggie’s Farm
patronage Patronage rebates are a portion of the net profit that the co-op makes from purchases returned to you, the owners. Patronage is also beneficial to the business in that the co-op will save over $22,000 in taxes by distributing patronage. Owners with more than $452 of purchases recorded through our point-of-sale system between July 1, 2015 and June 30, 2016 received a rebate.
$16,246
PATRONAGE RETURNED TO OWNERS
2,932
OWNERS RECEIVED PATRONAGE
58%
PROFIT RETURNED TO OWNERS
good. local. food. 901 Iowa • Lawrence, Kansas 66044 785. 843.8544 • TheMerc.Coop
On the front cover:Tomatoes harvested by Mark Lumpe of Wakarusa Valley Farm On the back cover: Fields at Bauman’s Cedar Valley Farms