2020 ANNUAL REPORT June 30, 2019 - June 27, 2020
1 Bloomingfoods Ends Statement, as articulated by the BCS Board of Directors: Because of Bloomington Cooperative Services, people in Bloomington and South-Central Indiana will have: • A market for local, fair, and healthful products, produced with care for the land, animals, and future generations. • A democratic cooperative-ownership model that provides meaningful employment and strengthens the community. • A robust and sustainable local food economy with fair prices for producers and all owner-members. • Access to education on food systems, cooperative values, and the interconnectedness of food, health, and the environment.
2020 BLOOMINGFOODS BOARD OF DIRECTORS President - Pam Weaver, term ends 2020 Vice President - Angela Babb, term ends 2020 Secretary - Jacob Schumacher, term ends 2020 Treasurer - Bobbi Boos, term ends 2022 Corbin Baird, term ends 2022 Nancy Mathews, term ends 2021 Tosh Lewis, term ends 2021 Guthrie Taylor, term ends 2022 Michelle Robison, term ends 2021
SENIOR LEADERSHIP TEAM Dee Bohler Phil Phillipy Mac McLauchlin Michele Shepherd Nicholas Blewett Nancy Flynn-Hert
General Manager General Manager, Near West Store Manager Finance Manager HR Manager Marketing & Communications Manager East Store Manager
2 PRESIDENT’S REPORT by Pam Weaver, Board President When reflecting on this past year, the word “change” is the first that comes to mind. All of us have learned to change our behaviors in order to keep ourselves and our loved ones healthy, and it hasn’t gone unnoticed that Bloomingfoods shoppers have modeled these best practices better than many. It’s been fun to notice that our cashiers have now learned to recognize members from the nose up. Thank you! Many of our members have become reacquainted with the joy of cooking in their own kitchens and lots of folks have become comfortable with ordering food online. These changes in member needs, as well as the need for a sanitized shopping environment, have meant rapid adoption of creative solutions. Dee and Phil, our intrepid General Managers, have made adaptations appear seamless, but they shouldn’t go unmentioned. They and their staff have kept the shelves stocked, even as preferences changed and even as big-box market shelves were empty. Online shopping and pickup was implemented in record time, with personalized call-in shopping offered until it became available. Importantly, our staff has stayed healthy, employed,
and in good spirits. All these rapid changes have made Bloomingfoods an oasis of calm in an uncertain time. I hope you’ll all join me in celebrating these outstanding efforts and make a point of thanking our staff the next time you’re in the store. One thing that hasn’t changed is my own gratitude to fellow board members, to the staff, and to you, our faithful members, who have continued to show the cooperative spirit we needed to keep Bloomingfoods strong over the past year. I’m looking forward to the day in the near future when we can again greet each other with visible smiles and happy conversations full-face to full-face in the aisles.
3 GM REPORT by Dee Bohler & Phil Phillipy, GM Team
Hello Bloomingfoods! We are pleased to once again report a year of progress for our Co-op, in spite of challenging world events. We would like to express our very sincere gratitude for your continued support during this turbulent period. We feel fortunate to have the opportunity to serve and enrich our community, and equally fortunate to work with such amazing people. We are incredibly proud to be a part of your Co-op. As fear and uncertainty have swept across the globe and through our town, our staff and our owners have been the pillars of our success. We know that the Co-op cannot exist without you. ‘Thank you’ to all of you. Through your support and efforts, we have been able to have a significant positive impact in our community, and in
the world beyond. We are excited to report an increase in Local and Organic item sales, and we are thrilled to say that this year we were able to put over $5,027,444 directly back into our community through payments to local farmers and vendors, payments to staff, and Positive Change donations! What we do here has a ripple effect that touches thousands of lives, but that does not make us unique. Coops everywhere play an important role in their communities, and the power of Co-operation should not be understated. Collectively, people are able to do amazing things, and the Co-op is all about people. That’s what makes us so resilient. As we move forward into a future that is as uncertain as ever, we are confident that our Co-op will continue to thrive and be a valuable asset to our community. Thank you for the opportunity to be a part of it.
$5,027,444 directly back into our community through payments to local farmers and vendors, payments to staff, and Positive Change donations!
4
East
Near West
$1,618,038
$1,442,133 $10,382
$19,330
$18,058
$665,024
$595,315
$591,314
$942,632
$784,733
$832,761
Total Local Sales Dollars Year Over Year
$1,399,378
A MARKET FOR LOCAL, FAIR, AND HEALTHFUL FOOD
Ivy Tech
Fiscal year 2020 saw an overall local sales dollar increase of 15.62%. This seems to indicate that our customers are committed to supporting local farms and producers, and that the co-op is doing a better job of providing and featuring local products.
BCS
Fiscal year 2018 Fiscal year 2019 Fiscal year 2020
% of Total BCS Sales Dollars Attributed to Local Products 12.87% 11.69% 10.80%
East
Near West
Ivy Tech
$4,591,442
BCS
Fiscal year 2018
Fiscal Year 2020 saw an overall organic sales dollar increase of 11%, and organic sales are an impressive 36.51% of overall BCS sales.
Fiscal year 2019 Fiscal year 2020
% of Total Sales Attributed to Organic Products
36.51%
33.95%
$4,135,737
$11,677
$20,459
$19,813
$1,648,792
$1,516,049
$1,551,894
$2,930,973
$2,559,230
$2,960,449
Total Organic Sales Dollars Year Over Year
$4,532,207
5
34.28%
6 MEANINGFUL EMPLOYMENT It may be worth noting that 44% of our current staff have a length of service of at least two years, and 38% of our current staff have been here for one year or less. While turnover is at times a challenge, 27% of our current staff are quite experienced, having worked at the coop for five years or longer. We have also seen the recent retirement of our longest tenured staff member, after having worked at the co-op for over 25 years.
BCS Staff Length of Service 19
20
19
20 17
8
0-6 mos
6-12 mos
1-2 yrs
2-5 yrs
5-10 yrs
10+ yrs
7 DEMOCRATIC COOPERATIVE OWNERSHIP Fiscal Year 2020 saw a 53.37% increase in new owner growth, and a 98.13% increase in net new ownership, with only 38 owners choosing to leave the co-op. Owner-Member Growth 251
250
244
212
204 169
163
107 75 56
47
38
FY2017
FY2018
FY2019
Left
Joined
FY2020 Net
Each year, co-op owners have the opportunity to exercise their right to vote in the annual election, not only to elect new members to the BOD, but also to select participants in our Positive Change Roundup program, and occasionally to approve amendments to the BCS bylaws. Fiscal year 2019 saw 588 owner-members participate in the annual election, up 303 participants from 2018. Owner Participation in the Annual Election 588
239
2017
285
2018
2019
bit
Ha
Fu nd
nit
um a
y
rls , In c
Gi
elie f
rH
at fo
ff R
Sta
ard
up bo
ing
Ag
nc e
llia
on
’s C
ard
cy
Ag en
ub b
ds
om ing foo
Blo
10
ter
Ce n
st A
aF ore
nd
bo ard
up
’s C
Fu
ls
he e
nd
Fu
ing
Ag
W
ity
mm un ity
ian
rH
the
Mo
Ar ea
on
mu n
bar d
ub
Co
Ind
alo m
Sh
rH
the
Mo
Me als
tiv eC om
era
op
Co
ce
on
sta n
ssi
cy
Ag en
dA
Fo o
10
mi ngt on
Blo o
CS C
MC
Ar ea
June ‘20
May ‘20
April ‘20
March ‘20
February ‘20
January ‘20
December ‘19
November ‘19
October ‘19
September ‘19
August ‘19
July ‘19
$8 ,55 4
$7 ,30 5
$7 ,36 5
3
$1 1,4 1
78
$1 1,3
08
$1 1,6
5
$9 ,70
$9 ,40 5
$8 ,04 7
9
$1 3,6 0
09
$1 0,4
3
$8 ,85
8
STRENGTHENING THE COMMUNITY
During Fiscal Year 2020, co-op shoppers (and a generous anonymous donor) donated $117,651 through our Positive Change roundup program. Of those donations, $102,239 went directly to local charitable organizations, with $7,365 going to the co-op’s Bloomingfoods Employee Emergency Relief Fund.
Fiscal Year 2020 Positive Change Donations
9 STRENGTHENING THE LOCAL ECONOMY Impact of Bloomingfoods as a Local Business $36,927,840
$21,370,392
FY2017
FY2018
$19,304,148
$20,177,581
FY2019
FY2020
Bloomingfoods has a positive impact on the local economy and community, but measuring that impact can be challenging.
induced impact where employees and business-owners consume goods and services and invest in the local economy.
Multiplier effect considers three levels of recirculation of a business’s revenue. The first is the direct impact, a measure including, (a) procurement for resale (locally sourced cost of goods); (b) procurement for internal use (local service providers), and (c) wages and net profits.
NCG looked at this measure in the co-operative grocery sector and found that, “food co-ops have an economic multiplier of 1.6, and conventional stores 1.36 (http://cooperativegrocer.coop/ articles/2012-12-04/numbers). This means that every dollar spent at food co-ops generates $1.60 into the local economy as opposed to $1.36 for conventional stores. The chart above uses this information to demonstrate the impact that Bloomingfoods has in the local economy by being a local business.
The direct impact is then combined with indirect impact of dollars spent at local businesses. These dollars spent are recirculated again into the local economy, as well as an
10 ACCESS TO EDUCATION ON LOCAL FOOD SYSTEMS AND MORE This year it has been challenging to make much progress toward this End. In-person workshops, demonstrations, and vendor fairs have been impossible since COVID, and we have had to adjust our featured local vendor program to avoid placing further strain on our local supply chain. We have experimented with some virtual engagements like the presentation and discussion that we hosted on Earth Day about sustainability best practices. We also recently used our Gallery B space to highlight art from Global Gifts, a local community partner. Although the seated area/ gallery at our Near West store has been closed since mid March, we still were able to highlight a
local community partner and share information about the importance of fair trade. Because of health and safety concerns we are using more plastic and paper than normal, however we continue to research ways to reduce our footprint (most notably in our deli department). The local farm tour was cancelled and the Tuesday market we hosted for many years has moved to the new Switchyard Park. We do continue to host a Wednesday market at the East store and have provided some support to the People’s Market. We recognize that we must continue to be agile and increase our efforts towards this End. This past year our efforts have been insufficient.
FAIR PRICES FOR PRODUCERS AND ALL OWNER-MEMBERS Bfoods for All Transactions Bloomingfoods for All Eligible participants in our Bloomingfoods for All program saved $20,142 in FY2020, (a year over year increase of over 75%), and took advantage of their savings 58,232 times. That’s an increase of over 60% and an average of 160 uses a day!
58,232 36,249
FY2019
FY2020
Bfoods for All Total Discount $ $20,142 $11,619
FY2019
FY2020
11 FINANCE REPORT Bloomingfoods’ Ends statements guide us in our daily decisions and our long-term vision. When we are successful, they resemble a cornucopia of goodness that rolls into our community. Yet, to be successful, we need a strong foundation. The strength of our finances greatly effects the strength of that foundation. While it’s a slow process to rebuild a foundation, together we are doing it. Looking back at our financial goals for 2020, we set them a bit high, but in striving for them we came close. The small sales growth that began at the end of FY 2019 continued for a sales growth of 4.52% in FY 2020. We paid off the City of Bloomington loan for the Near West Side renovations. We continued paying down the German American loan. And more member-lenders forgave or took a buyout of their loans for the failed Elm Heights location. Our assets verses liabilities are approaching industry standards, which improved our relations with suppliers. Finally, cash in the bank has grown to $789, 073. While our financial foundation is growing stronger, circumstances dictate that we must remain disciplined. First, the uncertainty of COVID’s long-term impact continues.
Other similar co-ops are spread widely along a continuum of highly increased sales to losses that have closed their doors over the last eight months. Second, the East-side location is a looming challenge. Our lease expires in 2021 and we haven’t heard from the developers since COVID. Whether we relocate to a new location or remain on the same site and re-build, cost estimations are $3-5 Million. Banks will expect a significant amount of that amount to come in the form of equity. Finally, investments to expand our shopper base and improve store operations have been put off for years as we fought to preserve the Coop following Elm Heights. In the coming year, our goal is to increase cash reserves and shore up Bloomingfoods’ foundation with ongoing improvements to store operations, more interactions with owner-members, and growth of our shopper base. As always, giant thanks to our owner-members, customers, staff and board for ongoing support and understanding. In the challenges ahead our cooperation will keep Bloomingfoods thriving. Bobbi Boos BCS Board Treasurer
INCOME STATEMENT REVENUE Gross Sales Cost of Goods Sold Gross Margin OPERATING EXPENSES Personnel Occupancy Operations Administrative Promotions Depreciation Other Total Operating Expenses OPERATING INCOME OTHER INCOME & EXPENSES NET INCOME BEFORE TAXES
BALANCE SHEET
12 6/27/20 12,610,988 7,978,597 4,632,391 2,939,178 467,509 714,892 153,224 93,678 73,565 38,028 4,480,073 152,318 181,131 333,449
CURRENT ASSETS 6/27/20 Cash 789,073 Inventory 385,371 Other 89,443 Total Current Assets 1,263,887 PROPERTY & EQUIPMENT Property & Equipment 3,784,813 - Accumulated Depreciation (2,838,249) Total property & Equipment 946,563 OTHER ASSETS 698,046 TOTAL ASSETS 2,908,496 CURRENT LIABILITIES Accounts Payable 421,806 Accrued Expenses 612,656 Current Portion Long-Term 906,815 Total Current Liabilities 1,941,277 TOTAL LONG-TERM LIABILITIES 225,866 TOTAL LIABILITIES 2,167,143 EQUITY Membership Shares 1,284,763 Retained Patronage 721,419 Retained Earnings (1,264,830) Total Equity 741,352 TOTAL LIABILITIES & EQUITY 2,908,496
6/29/19 Variance 4.52% 12,065,093 5.37% 7,572,320 3.11% 4,492,773 2,700,374 546,927 748,333 152,776 100,005 69,110 64,719 4,382,245 110,528 202,138 312,666
8.84% -14.52% -4.47% 0.29% -6.33% 6.45% -41.24% 2.23% 37.81% -10.39% 6.65%
6/29/19 Variance 49.37% 528,260 -6.31% 411,308 -11.18% 100,705 21.50% 1,040,273 4,076,428 (3,113,772) 962,656 653,992 2,656,921
-7.15% -8.85% -1.67% 6.74% 9.47%
376,433 648,743 620,985 1,646,161 670,870 2,317,031
12.05% -5.56% 46.03% 17.93% -66.33% -6.47%
258,012 721,419 (639,541) 339,890 2,656,921
397.95% 0.00% 97.77% 118.12% 9.47%
BLOOMINGFOODS FISCAL YEAR 2020
BY THE NUMBERS $1,618,038 in local sales
250
new owner-members
$20,142
in Bloomingfoods for All access discounts given ($73.35% increase of Bloomingfoods for All dollars spent)
$20,177,851 impact on local economy
12,978
active owner-members (98.13% increase in YoY net owner-membership
$117,651
donated directly to local non-profits via our Positive Change register round-up program
$2.4 million in wages paid to our staff
93
local vendors
$1.3 million paid directly to local vendors (excluding local distributors)
$4,591,442 in organic sales (36.51% of our overall sales)
4.52%
percent increase in sales from Fiscal Year 2019
To our owner-members, Board of Directors, staff, shoppers, and community partners thank you for making it a great year!
BLOOMINGFOODS LOCATIONS EAST 3220 E 3rd Street Bloomington, IN 47401 812-336-5400 NEAR WEST 316 W 6th Street Bloomington, IN 47404 812-333-7312 IVY TECH (currently closed) 200 Daniels Way Rm D109 Bloomington, IN 47404 812-822-0143 www.bloomingfoods.coop