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2016 Impact Report Hunger Mountain Co-op is a member-owned, communitybased natural market committed to building a dynamic community of healthy individuals, sustainable local food systems, and thriving cooperative commerce.

Local Multiplier

June 29, 2015 – July 3, 2016

$9 million

Co-ops have a higher local economic multiplier than conventional grocery stores. Every $1 spent at our Co-op generates

spent on goods $8.2 million and services from organic product sales

502 VT vendors

8,239 $24.4 million member

$1

63

owners

gross sales

168 employees all earning at least

in economic activity for our community.

VT Livable Wage

Dynamic Community of Healthy Individuals

Sustainable LocalFood Systems

$3.4 million in produce sales, a 6.3% increase

energy usage

95% of store lighting is LED

$9.7 million in local product sales, that’s a 17.3% increase

My Co-op helps create a sense of community and it promotes environmental stewardship. 4.2

of a multiyear decline in sales growth

$39,890 in community donations and sponsorships

Local Product Sales

Debt to Equity Ratio

$12M $10M

$9,708,852

$8M $6M

$6,080,048

$4M $2M $0

Shopper Survey Results:

$24,197,661 net sales, a 6.6% increase and the end

2012

2013

2014 2015 Fiscal Year

Shopper Survey Results:

2016

Debt/Equity

5.8% decrease in overall

Local product sales are defined as the retail value of products grown or value-added in Vermont or within 100 miles.

Sales in Dollars

106 workshops 15 school tours

We hosted and

Thriving Commerce

1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.0

1.41 1.02

2012

2013

2014 2015 Fiscal Year

2016

Shopper Survey Results:

My Co-op helps support the local-food economy. 4.5

My Co-op promotes cooperatives as a business model. 4.4


Council President’s Report Measured in numbers or evaluated by its mission, our Co-op had a very successful year in 2016. What’s on the shelves is important, but so are Hunger Mountain Co-op’s business practices. As a company with a triple bottom line, our store strives to treat vendors and employees fairly, to embrace environmental stewardship, and to support healthy eating and a strong local-food economy. As a cooperative, our store is democratically governed and the profits belong to us, the owners. Take a look at some of this year’s accomplishments.

Five ways we grew

Three things we got better at  Energy usage fell by 6%.  Prudent financial management improved key metrics in debt-to-equity ratio and assets-to-liabilities ratio.  Employee job satisfaction rate as measured by our annual staff survey rose to 98%.

Two things we hope to improve next year  Net income, while higher than the previous year, is still very modest and should be increased.  Discounts offered to member-owners grew almost triple the rate that sales increased, an unsustainable trend.

 We roughly doubled the number of member-owners in the past 10 years  Sales rose to $24.4 million and grew faster than they had in several years, reversing a downward trend that gave us concern last year.  Donations and sponsorships in the community increased nearly 30%, and made a difference to 130 local organizations.

This annual report gives a picture of the Co-op’s success in 2016, but what’s behind all those numbers is you. Your participation in the business you own is what helps the Co-op thrive. Thank you for another great year.

Alex Brown, Council President

 Sales of local products rose to $9.7 million, or 40% of overall sales.  The store you own is worth more, as member-owner equity rose to $3.4 million.

Four things stayed the same  The Co-op kept its profits right here in the community and gave local suppliers a vital sales channel.  Shopper satisfaction remained at 98%.  100% of Co-op employees earn at least the Vermont livable wage.  By sharing time, money, and expertise, the Co-op continued to support cooperative development locally, regionally, and nationally.

Three-Year

Financial Highlights

Summary of Operations Net Sales Cost of Goods Sold Gross Margin Employee Compensation Occupancy Expense Operating & Administrative Expense Depreciation Expense Other Income (expense) Interest (expense) Patronage Rebate Distribution Provision for Income Tax Net Income (loss)

$

FY2016 (53 week year)

FY2015

FY2014

24,197,661

22,694,529

$ 22,014,482

15,583,446

14,636,299

14,109,744

8,614,215

8,058,230

7,904,738

6,640,310

6,097,865

5,958,439

365,976

395,958

405,015

1,040,412

1,010,168

988,964

315,456

277,514

284,818

55,014

72,206

49,815

(82,817)

(76,086)

(79,182)

(168,926)

(212,088)

(174,636)

47,700

(55,538)

(50,472)

103,032

$

5,219

$

13,027

Balance Sheet Data Current Assets

3,099,814

2,697,044

2,353,314

Property, Plant, and Equipment — net

3,440,277

3,614,032

3,614,803

248,719

190,317

276,434

$ 6,788,810

$ 6,501,393

$ 6,244,551

Current Liabilities

1,716,935

1,593,099

1,584,680

Long-Term Debt

1,597,675

1,630,219

1,631,602

109,000

164,000

127,000

3,365,200

3,114,075

2,901,269

$ 6,788,810

$ 6,501,393

$ 6,244,551

$ 1,303,901

$ 1,240,272

$ 1,163,393

Other Assets Total Assets

Deferred Tax Liability Member Equity Total Liabilities and Equity Membership-Contributed Capital

Complete audited financial statements are available at the Co-op.


Hunger Mountain Co-op 2016 Impact Report