2017 Annual Report
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
Inti, from our Produce Department, stocks fresh organic kale
• B uilding a community based on hospitality, generosity and care for the environment.
celebrating our thriving co-op BY BARBARA CLARK, BOARD PRESIDENT
When co-ops succeed, stakeholders benefit. With our owners, local producers and community in mind, your co-op has embarked on—and launched—a variety of projects to enhance our reach and grow our impact. As we wrap up this fiscal year, we reflect on our successes and look ahead to our 44th year as a thriving cooperative. Opening the Co+op Cafe in the Lawrence Public Library placed us in the heart of our city’s vibrant downtown. Our presence has been met with enthusiasm; and, it has deepened our connection and broadened access to good, local food.
Our responsibility to care for the environment guided the board’s decision to approve the installation of a 200 kilowatt solar array. And, with our Summer 2017 HVAC and roof replacement project, we have already reduced energy use. Thanks to your loyalty and commitment to your co-op, we ended the year with encouraging sales growth which allowed the board to authorize a $36,864 patronage rebate distribution. Visioning how to meet owner needs is one of the board’s responsibilities. We have engaged in a series of
The 2017 Board of Directors: Ryann Waller-Treasurer, Jennifer Ananda, Daniel Poull, Barbara Clark-President, Mark Sprague-Vice President, Kelly Barth-Secretary, Jake Johannes
strategic conversations on the topic of expansion and will continue to explore opportunities that arise within our region. Today and everyday, we recognize that it is your continued commitment to The Merc Co+op that makes our work within this community possible. Thank you.
Statistics in this report are for FY17 (7/1/2016 – 6/30/2017)
C ARE FOR THE ENVIRONMENT
sustainability Supermarkets use more energy per square foot than nearly any other type of business. Refrigeration, followed by heating, cooling and lighting are responsible for the vast majority of energy consumption. Last Spring, we replaced our 60 year old roof and took that opportunity to invest in energy efficient insulation and HVAC units. Over the last two years, we corrected the store’s airflow and transitioned to LED lighting on the sales floor.
ANNUAL ELECTRICITY USAGE 1,600,000 1,400,000
As we look ahead, the upcoming 200 kWh solar project will further reduce our electricity use and carbon footprint.
1,200,000
kWh
1,000,000
Board and staff joined forces to march in the 2016 Earth Day Parade and announce our solar plans.
800,000
7.54%
600,000
LESS ENERGY USED SINCE ROOF/HVAC REPLACEMENT
400,000
4.07
200,000
US TONS DONATED TO JUST FOOD BANK
0 2015
2016
2017
ROBUST, SUSTAINABLE LOC AL FOOD
TOTAL LOCAL SALES
$3.8M
PERCENT OF LOCAL SALES
29.2% Less than
NUMBER OF LOCAL VENDORS
233
*Located within 200 miles of The Merc
50
miles to The Merc
William Voigts of Voigts Farms
Student Gardener, Angel, displays cabbage harvested from the GFGH West Middle School Garden
growing food growing health Finishing up a bountiful eighth season, the Growing Food Growing Health School Garden Project is evolving and now includes a weekly garden club, a new West Staff Liaison position, Student Garden Assistant position, and regular sampling in the West Middle School cafeteria. We do this all while tending to 14,000 square feet of gardens. With the help of amazing Student Gardeners, dedicated staff and our extended community, we grow minds as well as fresh, organically grown produce.
BOARD OF DIRECTORS Vanessa Sanburn, President Bruce Passman,Vice President Deb Rake, Secretary Marianne Wille, Treasurer Marlin Bates Dennis “Boog” Highberger Judy Paley Helen Schnoes Nancy O’Connor, Executive Director
“Gardening is one of the things in my life that is very relaxing, and helps me become calm and happy. I enjoy teaching others about being healthy and how to provide for the environment.” -RUBY, STUDENT GARDENER
TRANSFORMING AND NOURISHING THE HEALTH OF OUR COMMUNITY
education and outreach
147
NUMBER OF CLASSES TAUGHT AT THE CO-OP
9.65
AVERAGE CLASS EVALUATION SCORE (1-10)
EDUCATION & OUTREACH PARTICIPANTS 8,000 7,000 6,000 5,000
19,565
4,000
POUNDS HARVESTED SINCE BEGINNING OF GFGH
3,000
4,000
2,000
4,500
0
IN-SCHOOL TASTINGS MADE FROM GFGH PRODUCE
1,000
2014
2015
2016
2017
OUTREACH PARTICIPANTS class participants
outreach participants
Education & Outreach Director, Nancy O’Connor, instructs Student Gardener, Ruby, how to properly harvest green beans
ownership
3.77% SALES GROWTH
60.8% SALES TO OWNERS
7,469 TOTAL OWNERS
RAISED & DONATED THROUGH CHANGE FOR OUR COMMUNITY
$100,000 $80,000 $60,000 $83,481
$40,000 $20,000 Clay from our Front End Department rings up purchases for co-op owner and Education & Outreach employee, Hannah.
$0 2014
2015
2016
2017
BUILDING A COMMUNITY BASED ON HOSPITALITY AND GENEROSITY
employment In an effort to help us connect with others and to better understand the work that the co-op does within our community, employees participate in Employee Community Outreach (ECO) each year. Staff may choose from working in the GFGH student garden, assisting with outreach events or volunteering with a local non-profit organization.
118
TOTAL EMPLOYEES
Josh and John from our Food Services Department spread mulch at the West Middle School Garden as part of their volunteer ECO hours.
86
“I’ve always wanted to be a mentor, but never really had the means to do so.Volunteering with the Happy Hearts program at West Middle School was the opportunity I was looking for. Now, the lunches with my buddy are the highlight of my week.”
PARTICIPATED IN COMMUNITY OUTREACH -VALERIE M., MEAT & SEAFOOD ASSISTANT
KEY FINANCIAL DATA
expense overview 61.97%. . . . . . . . Cost of Goods Sold 23.36%. . . . . . . . . . . . . . . . Personnel 12.22%. . Other Operating Expenses 2.45%. . . . . . . . . . . . . . . . . . . . Profit
balance sheet BALANCE SHEET ASSETS
TOTAL SALES
TOTAL EQUITY
2017
2016
2015
Current Assets
$1,185,794
$992,264
$1,142,161
Property & Equipment
$4,150,231
$3,356,370
$3,497,343
Other Assets
$13,085,557
2015
Total Assets
$256,424
$228,279
$212,245
$5,592,449
$4,576,913
$4,851,749
LIABILITIES Current Liabilities
$1,067,938
$778,565
956,219
Long Term Liabilities
$1,812,412
$1,345,149
$1,612,833
Total Liabilities
$2,880,350
$2,123,714
$2,569,052
$3.0 M
EQUITY
$2.5 M
Common Stock
$562,386
$544,536
$526,461
$2.0 M
Retained Patronage
$819,878
$776,239
$709,073
$1.5 M
Retained Earnings
$1,329,835
$1,132,424
$1,047,163
Total Equity
$2,712,099
$2,453,199
$2,282,697
Total Liabilities & Equity
$5,592,449
$4,576,913
$4,851,749
$1.0 M 2012 2013 2014 2015 2016 2017
patronage Patronage rebates are a portion of the net profit that the co-op makes from sales to owners. Patronage is also beneficial to the business in that the co-op will save over $60,000 in taxes by distributing patronage. Owners with more than $510 in purchases between July 1, 2016 and June 30, 2017 received a rebate.
$36,864
PATRONAGE RETURNED TO OWNERS
Cucumbers harvested from the Growing Food Growing Health West Middle School Garden
On the cover: Roosters from Vesecky Family Farms in Baldwin City
To our owners, board, staff and partners – thank you for making it a great year. We are stronger together!
901 Iowa • Lawrence, Kansas 66044 785. 843.8544 • TheMerc.Coop