annual report - Wild Oats Coop

Wild Oats Cooperative, Inc.
ANNUAL REPORT
For the Year Ending June 30, 2014
Board President’s Report
Fiscal year 2013-14
was a year of continued growth for
the store, with a
7% increase in sales
from the previous
year over all and
considerably larger
increases in some
departments such as
prepared foods, meat
and seafood, and the
bakery. That growth didn’t translate into as strong
profits as the previous year for various reasons,
including paying more in staff benefits, but the store
will still be able to issue a patronage rebate to member-owners for the 7th straight year. Meantime we
continued to increase the percentage of local, organic, and fair trade sales; we’re an important source of
income for local farmers; and we’re providing direct
jobs to 50 people.
by Alison Kolesar
very good experience. The Wild Oats board functions
extremely well, benefiting both from being organized
according to Policy Governance and from the help of
our consultants at Cooperative Development Services. Also, the board is made up of smart, committed people, who work well together for the good of
the whole and keep their eyes on the big picture on
behalf of the member-owners. As General Manager,
David has been a pleasure to work with. Quite apart
from his leadership in the store, he has a particular talent for explaining financial statements to the
board and is unfailingly thoughtful and considerate.
Wild Oats has excellent staff, loyal members, and an
involved community, and is looked up to locally as a
successful homegrown business.You can feel proud to
be part of this organization!
The Cooperative Principles
1. Voluntary and open membership
Wild Oats has just had its first ever audit. One of
the main jobs of the board is to keep on top of the
store’s financial situation on behalf of members.
We’ve commissioned outside financial reviews in the
past, but an audit obviously goes further. We used the
firm of Wegner CPAs, which is well known and respected in the coop world, and we hope to have their
report by annual meeting.
2. Democratic member control
At the annual meeting, I’ll be stepping down from
six years on the board, four as president. It’s been a
7. Concern for community
3. Member economic participation
4. Autonomy and independence
5. Education, training and information
6. Cooperation among cooperatives
IN-HOUSE MEATS SOLD
In-House Ground Beef
lbs sold in FY13
268
In-House Ground Beef
lbs sold in FY14
2827
In-House Sausage
lbs sold in FY13
89
In-House Sausage
lbs sold in FY14
8918
2
General Manager’s Report
It was another busy
and productive year
at Wild Oats! We
served over 210,000
customers, an increase of 10,000
from the year before.
All those extra customers helped boost
sales for the year by
7% – a much faster
growth rate than
most conventional grocery stores have seen. We
added 215 new member-owners to the co-op rolls,
and by the end of June we had a record 1,382 active
member households.
by David Durfee
September, with repairs to the top portion of the
chimney and a thorough scrubbing and resealing of
the roof.
We survived several power outages with little loss
of product. When we did have electricity, we were
paying as much as 40% more than we had the previous year (despite using less power). To help mitigate
against future rate hikes, we are planning to retrofit
additional refrigerator cases with LED lighting and
are scheduled to have solar panels installed on the
roof next spring.
Some of the other things that have been happening at
Wild Oats this year:
• Last fall we began our Explorers Club, which lets
kids get a free piece of fruit (and more importantly
for some, a sticker) every time they visit the store.
The co-op staff count, meanwhile, continued to grow
as well, hitting the 50 employee milestone for the
first time. With that came the responsibility to comply with the provisions of the Family & Medical Leave
Act – which, as it happens, we are already doing.
Ensuring that Wild Oats is and remains a good place
to work is an on-going priority and a key piece of our
Ends Policies. With that in mind, over the winter we
added an Employee Assistance Program which provides legal, financial and health-related professional
consultation at no cost to staff. We have long provided paid sick time for employees scheduled to work
20+ hours per week (95% of the staff). And unlike
many 21st century retail workers, Wild Oats employees are offered regular, predictable work schedules
and can count on a minimum number of weekly
hours.
• During the winter, we added commercial composting to our waste-disposal regime; all food waste we
generate, up to and including bones, is now diverted
from landfills and ultimately returned to the soil.
• We redesigned our newsletter and moved to a
quarterly frequency, with an emphasis on longer,
more in-depth articles. At the same time, we expanded our use of social media, adding a presence on
Twitter and Pinterest.
• In May, at the suggestion of a group of inspired
Williams students, we started Suspended Groceries,
which allows customers to “suspend” their purchases
of fresh food for those who can’t normally afford it.
• In the spring, we ran a week-long trial of a healthy
lunch program at Pine Cobble school; based on the
enthusiastic response, we are now serving soup, sandwiches, and fresh fruits and vegetables (and tacos on
Tuesdays) to some 50 students a day.
While there were no big resets or major store fixture purchases this year, we made a number of more
subtle and behind-the-scenes improvements in the
store. We updated our overhead aisle signage and introduced new branded shelf signs in the Deli/Bakery
and Bulk departments. That effort has since expanded to the Produce section with simpler, easy to read
symbols for organic and local items.
Wild Oats also organized numerous workshops,
outreach events, and farm tours, which are detailed
elsewhere in this report.
In closing, I would like to thank Alison for her six
generous years of service to the co-op. Along with
Rebecca Ohm and Mary MacDonald, she joins the
dozens of others who have left glamorous board life
behind, but continue to participate actively in the life
of Wild Oats through the crucial role of using the coop as a shopper and as a source of information. We
look forward to their continued input and involvement in the years to come.
In the office, we replaced an aging and expensive-to-operate printer and traded in several computers that had
antiquated operating systems. We gave the employee
break room a fresh coat of paint and installed new
slip-resistant treads on our two staircases.
Building maintenance projects continued into this
3
Financial Report
Fiscal Year Ended June 30. 2014
Wild Oats Market continued its recent trend of
positive sales growth during the last fiscal year. Total
revenue reached $4.8 million, an increase of 6.6%
over last year. Two departments in particular had remarkably productive years, with Bakery sales up 34%,
and Meat & Seafood up 30% in its first full year of
butchering. The Deli also recorded 12% growth, and
the Produce department was up 10%. Sales in the
rest of the store were essentially flat however, with
several departments (Frozen, Supplements) continuing a pattern of sales declines.
penses remained at about 10% of sales. Pre-tax profit
was $38K, or 0.8% of sales—lower than in recent
years, but still a positive result for the year.
The co-op’s balance sheet is very healthy, with our
debt-to-equity ratio (what we owe others, vs. what
is ours) down to 1.24, and the current ratio (representing our ability to meet short-term obligations) at
1.7, where anything over 1.25 is considered adequate.
Member deposits grew during the year by $20,000
as our ownership ranks continued to climb. Cash
increased to $243,000. Overall, we are well-positioned to make the immediate investments needed to
maintain the physical plant and to continue meeting
the growing needs of the membership.
The Board of Directors has declared a patronage
dividend of $23,101 the maximum allowed by law as
determined by our sales to members, with 40% to
be rebated in cash and the balance retained by the
co-op. Qualifying households will receive notification
in January.
The store’s overall gross margin (the difference
between revenue and cost of goods) was 40.2%,
down a bit from 40.5% the previous year. Notably,
for the second consecutive year, personnel expenses
increased by 18%, due to a confluence of stronger
growth in the labor-intensive service departments
(bakery and meat), overall wage increases, and significantly higher participation in our health insurance
and other benefit programs. Other overhead ex-
Membership
215
Total Active Members: 1,382
Members with $200 Equity: 445
New Members in FY14:
FY08
FY09
1,084
FY10
FY11
1,066
1,202
FY12
1,274
FY13
1,283
FY14
1,275
1,383
Membership
1,600
1,400
1,200
1,000
800
600
400
200
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
4
Financial Statements
Profit & Loss Statement
Fiscal Year 2014
FY14
FY13
Variance
Ordinary Income/Expense
Revenue
$
Cost of Goods Sold
Gross Margin
4,777,004
$
4,480,774
6.6%
2,855,393
2,667,912
7.0%
1,921,611
1,812,862
6.0%
Expense
Personnel
1,389,062
1,177,695
17.9%
Occupancy
245,855
229,608
7.1%
Operating Expenses
15.1%
146,071
126,903
Administrative Expenses
41,387
43,919
(5.8%)
Governance
31,821
32,240
(1.3%)
Marketing
38,997
43,481
(10.3%)
1,893,193
1,653,846
28,418
159,016
(82.1%)
9,192
9,423
(2.5%)
Total Expense
Net Operating Income
Net Other Income
Income before Taxes
Provision for Taxes
37,610
168,439
4,188
31,335
NET INCOME
$
Balance Sheet
June 30 2014
33,422
$
137,104
LOCAL
PRODUCTS
SOLD
125,380
148,958
individual
eggs
individual
sold in 2014
eggs
sold in 2013
14.5%
$46,006
$42,522
apples &
cider sales
in 2014
$83,985
cheese sales
in 2014
apples &
cider sales
in 2013
(75.6%)
June 30 2013
ASSETS
Current Assets
Checking/Savings
$
Other Current Assets
Total Current Assets
Fixed Assets
Other Assets
242,718
$
198,780
320,995
319,014
563,713
517,795
1,553,926
1,631,011
37,874
32,376
2,155,514
2,181,181
Current Liabilities
325,583
328,522
Long Term Liabilities
869,785
951,719
1,195,368
1,280,241
Member Capital
210,416
189,511
Retained Patronage Dividends
217,976
221,035
Retained Earnings
531,753
490,394
960,145
900,940
TOTAL ASSETS
$94,027
cheese sales
in 2013
LIABILITIES & EQUITY
Liabilities
Total Liabilities
$170,087
local farms
retail sales
in 2013
Equity
Total Equity
TOTAL LIABILITIES & EQUITY
$
2,155,514
$
2,181,181
$189,801
local farms
retail sales
in 2014
Note:
financial
statements are
subject to
external audit
Note: financial statements are subject to external audit
5
Page 1 of 1
Another Busy Year . . .
Events, Classes and Outreach Activities
We began the fiscal year with our annual, month-long
Membership Drive, which resulted in more than 100
new member-owners for the co-op. July 2013 was
also a big month for outdoor food events, with a local
foods BBQ, an ice cream social to benefit the Garden
Mosaics Program of North Adams, and a fresh foods
BBQ, which featured meats and poultry from our
newly expanded Fresh Meat & Seafood Department.
A five-week series of workshops beginning July 9,
2013 covered a different category of healthy foods
for summer meal planning each week. In August we
held our first-ever summer clambake, which was an
outstanding success. At the end of the month, we
participated in Get Fit at the Farmers’ Market, where
our chef Greg Roach sautéed vegetables donated
by the farmers on his portable grill, and handed out
samples to hungry shoppers.
In mid-November, Leanne Yinger returned to lead
a holiday cooking class, showing us how to make
healthy holiday dishes like her colorful white bean,
Brussels sprouts and pomegranate tart. Shortly
before Thanksgiving we held a short but useful class
on how to make our own almond milk, led by Nicole
Anagnos of Zen Tree Wellness. We also hosted our
annual holiday open house in November, with our
chef and managers all contributing to a fabulous holiday feast that included a roasted Misty Knoll turkey,
for our members and customers.
On a beautiful Saturday morning in September, Renee
Tassone, owner of Eat to Total Health in North Adams, delivered a free talk on how better nutrition can
lead to better health. We hosted a new member-owner orientation with our general manager later in the
month; and indulged in a “suki Skincare Spa Night” in
mid-October. The month of October also included
a Women’s Health cooking class with health coach
Leanne Yinger; a Free Fair Trade Banana Day to celebrate Fair Trade month; and a Halloween costume
party with face painting and pumpkin carving. We
also found time to participate in the World Food Day
Rally: March Against Monsanto on October 12, 2013
in Pittsfield.
We began January 2014 with a visit from Nicole of
Zen Tree Wellness, who encouraged us with a free
talk on “a healthy start to the new year.” In February,
we took a break from classes that focused on eating
for health, with a Valentine’s baking class led by Wild
Oats bakers Kristin Kennedy and Stephanie Messina.
We also hosted a Chamber Night for the William
6
stown Chamber of Commerce, with the help of our
hard-working department managers.
In March, the focus of our class schedule was back
on healthy eating, with a workshop on how to make
your own kombucha led by Wild Oats staffer Evan
Webb. In early March we also paid a visit to Ioka Valley Farm in Hancock, MA to watch maple sugar being
made and enjoy fresh samples of this naturally sweet
treat. We also joined local farmers and fresh-food
foodies for the third annual Know Your Farmer, Know
Your Food, a social get-together held in North Adams
on March 18.
In April, we collaborated with three other community organizations – Pine Cobble School, Black Queen
Angus Farm, and Williams College Sustainable Food
& Agriculture Program – to present Goats in the
Woods, a three-part event that included a woods
walk to meet the goats living at Pine Cobble; a fullcourse dinner prepared by our chef and featuring
locally raised goat; and a presentation by Dr. Peter
Smallidge, Cornell University Arnot Forest Director.
Also, with the Center for EcoTechnology in Pittsfield
and the Williamstown COOL Committee, we hosted
a home composting workshop and LED light bulb
sale on Earth Day.
kickoff of the Mayor’s Fitness Challenge at the North
Adams YMCA. On the first day of summer, June 21,
we held our 2014 ice cream social to support Northern Berkshire Community Coalition’s Mass in Motion.
As always, Wild Oats held quarterly Member-Owner
Appreciation Days in August, December, February and
May. In addition to the many suppliers who came to
our member days, we hosted several individual tastings throughout the year, including Our Daily Bread/
The Gluten-Free Bakery from Chatham, NY; Plymouth Cheese from Plymouth,VT; Big Elm Brewing
from Sheffield, MA; and Our Daily Eats from Albany,
NY. We also participated in MCLA’s annual student
health fair and in the Resource Fair for freshmen at
Williams College. When we said it was “another busy
year …” we meant it!
We moved into the warmer weather (finally!) with a
class on Healthy Grilling Techniques, given by our instore grill master Dan Lauth just before the Memorial Day weekend. Early in May, we participated in the
Community Donations
munity Chest and HooRWA
(Hoosic River Watershed
Association); and organizations
created to address specific
community issues, like
Higher Ground and CET
(Center for EcoTechnology).
In all, we made donations to 37 different organizations, 35 of which are located in the North Berkshire region.
This dollar amount does not include the time
donated by Wild Oats staff to assist with various
community events held over the year. We would
especially like to recognize our Prepared Foods
Manager, Greg Roach, for the many hours of time
that he donated to preparing and serving food at
numerous events throughout the year.
In Fiscal Year 13/14, Wild Oats Market donated
$10,163.00 to local organizations, which is approximately a 2% increase in donations over the
previous fiscal year. Some of these donations
were monetary or in the form of gift cards. We
also made a significant number of food donations,
including regularly scheduled donations of soup
and healthy snacks to the Williamstown Council
on Aging’s Meals on Wheels program; soup for the
Berkshire Food Project’s Empty Bowl dinner; and
snacks that we provided at cost on a regular basis
to the Williamstown Youth Center.
Our donations were made to a broad range of
organizations, including local schools and colleges;
established non-profits like the Williamstown Com7
Healthy
Food
for All
Healthy Food for All
Program
Our HFFA (Healthy Food for
All) program, which provides
qualifying households with a
10% discount on most items in
the store, had approximately 300 participants in
FY 13/14. HFFA discounts for the last fiscal year
totaled $9,355.
The goal of this program, which is in its fifth year,
is to make healthy food and natural supplements
more affordable for individuals and families with
limited incomes. It is well-aligned with the following
excerpt from the Wild Oats End Policies, which
state that Wild Oats exists to provide: Environmentally responsible, healthful, local and fair trade
products, food and meals at reasonable prices.
The HFFA program requires its participants to
apply to the program yearly and to provide upto-date proof of their participation in SNAP (Supplemental Nutrition Assistance Program) or WIC
(Women, Infants & Children Nutrition Service)
when they apply. It offers participants discounts
on all products except beer, wine, newspapers, gift
cards, special orders, and consignments.
suspended Suspended Groceries
groceries Initiative
Wild Oats introduced the Suspended Groceries initiative in
late April 2014, as a way to provide food support at the local level. In its first two
months, our members and customers suspended
245 items to the Suspended Groceries initiative.
Suspended Groceries was conceived by a group
of Williams College students, whose goal was to
shift people’s thinking about food security while
addressing the immediate needs of those who are
food insecure. The students named their solution
Suspended Groceries, after Suspended Coffees, the
pay-a-coffee-forward phenomenon that started in a
café in Naples, Italy.
Shoppers who wish to donate a Suspended Groceries item simply choose from the display at the
register when they check out. Wild Oats tracks
suspended grocery items weekly and issues a coupon for each item, which it gives to an area food
pantry to distribute.
Wild Oats Market is committed to being a positive
and active participant in the vibrant North Berkshire community. Our contributions help to make
our community stronger and healthier.
320 Main Street • Williamstown Mass 01267
413-458-8060 • wildoats.coop