ANNUAL REPORT 2023
A letter from the General Manager
Welcome to the Co-op’s 2023 annual report. 2023 marked another year of growth and evolution for our community-owned Co-op. We welcomed Workers United to our Co-op as the union representative of 80% of Co-op workers and successfully bargained a win-win contract. By focusing on our shared values and meeting the needs of all stakeholders, the Co-op continues to thrive in 2023.
Lexington is a Union Co-op
In December, Co-op workers voted to be represented by Workers United. After a productive eight months of bargaining, we signed our first contract with store team members on August 9. The new contract accomplishes our goal of making the Co-op an even better place to work, with a $16.50 starting wage and generous benefits package that includes three and a half weeks paid time off for new full-time staff. The co-operative and labor movements share structures that join people together to meet their mutual needs, and Lexington is proud to be a union Co-op.
Assistance During Uncertainty
Consumer-owners experienced uncertainty this year. Food at home inflation hit 9% in December, and everyone was impacted. The Co-op team worked hard on your behalf to keep our prices as low as possible for customers. First, we leaned into the local food supply that has served us for so many years. A great example of that is when the Avian flu knocked out much of the national egg supply. It was our long-time producer Meadow Creek Farm that was able to consistently provide the Co-op with eggs, making them the lowest-priced eggs in town. In 2023 we sold 37,000 dozen Meadow Creek eggs!
We also relaunched our Double Up Food Bucks program in partnership with Field and Fork Network to improve access and affordability to local, fresh and organic fruits and vegetables for SNAP participants. Through this program, SNAP customers saved over $101,000 on fresh produce at the Co-op. We have nearly 1,000 customers participating in this important program, and we continue to work with Field and Fork Network to increase that number.
Our Generous Community
We’re proud and humbled by the community’s support of our Change for Change program this year. More than $128,000 in donations were collected for incredible organizations like Western New York Land Conservancy, Massachusetts’s Avenue Project and Providence Farm Collective. This program, now in its fourth year, shows the generosity, kindness and compassion of our customers.
Our community of farmers and producers grew with the addition of nine new local vendors, including the so-delicious-I-put-it-on-every-sandwich-I-eat Sadie’s Relish, DerrickSky cookies and Smita’s Spices. Our continued partnerships with sister Co-op BreadHive and 43 North winner, Top Seedz, continue to be customer favorites. Altogether, we purchased more than $2.5 million from local farmers and producers. This truly shows that each time you choose to shop locally, you are part of building a strong local food system, supporting your neighbors, and eating well.
As we look forward to 2024, we did it with excitement and optimism for our community driven Co-op. We will continue to grow our network of local farmers and producers. We will progress toward being the best grocer in Buffalo. We will build a long and fruitful partnership with our union. Add to that your support, and the Co-op is bound for growth and success. We thank you for the role you play in it.
Sincerely,
Tim Bartlett General Manager
DOLLAR STAYS LOCAL57
It’s been an exciting year to serve as president of the board of directors for the Lexington Co-op! We’ve welcomed Workers United into the Co-op community. Our contract with store staff has made the Co-op a better employer with a starting wage of $16.50/hour and generous benefits. On the board, we’ve welcomed two new incredible members, Cristina Masucci and Karina Loera, who have served partial terms and are running for a full term in this year’s election.
As we grow, we have the opportunity to create an organization that’s even more accessible, impactful, and inclusive for everyone. Over the last year as a community, we welcomed even more new memberowners than last year, 643 to be exact, and helped member owners and their families save more than $150,000. The Double Up Food Bucks program helped nearly 1,000 participants save on fresh produce, and the Change for Change program raised $128,000 for local non-profits.
The board has worked over the last few years to be a high-functioning team, in line with part of the Coop’s strategic plan for staff. We have a highly engaged board with strong participation from all board members, with every single board member leading some part of the work we accomplish on a regular basis.
Last year I shared that we worked to fully rewrite the Co-op’s board policy register, which hadn’t been updated wholesale since its creation in the ’90s. We did this with the intention of allowing the board to more efficiently evaluate GM performance and allow for more time for high-level discussion and decision making. This change proved to be invaluable over the last year and will continue to serve the Co-op for years to come.
Our board member training program continues to be a success, ensuring board members are educated, up to speed with how our board operates, and quickly integrated into the organization. This year we’ve begun the process of evaluating the Co-op’s end policies and are kicking off a new committee working on member-owner engagement.
Before signing off, I have to say thanks to the incredible team working at the Co-op every day. Thank you for all that you do for the organization! And thanks to all of the member-owners for shopping at the Coop and participating in building a more local vibrant community and economy.
I look forward to seeing you at the annual meeting!
Sincerely,
Patrick Finan Board President
O F
EVERY
We envision a Strong and Equitable Local Food System
We are proud and grateful to partner with Field and Fork Network on the Double Up Food Bucks program, a national model for healthy food incentives that provides individuals and families who use SNAP benefits with free produce that encourages the purchase of healthy, locally grown fruits and vegetables.
Fresh, local, nutritious food on more Buffalo tables
979 participants
16,710 transactions
$101K Saved by participants of Double Up Food Bucks
$139K Donated to Non-profit Organizations
A founding principle is our Concern for Community
Change For Change Recipients
Justice for Migrant Families.......................
Providence Farm Collective ......................
Clean Air Coalition .................................
Westside Bazaar......................................
Burning Books........................................
Massachusetts Avenue Project .................
Mental Health Advocates WNY................
Buffalo Mutual Aid Network ....................
Buffalo Go Green..................................
WNY Land Conservancy...........................
FeedMore WNY .....................................
Upstate NY Black & Latino Pride ...............
$12,157.74 $9,124.59 $11,865.30 $13,065.73 $10,008.89 $12,004.10 $10,683.35 $9,132.85 $10,982.97 $7,963.37 $9,165.52 $11,826.31
Small acts of generosity collectively make a huge impact on frontline organizations in our communities. Local organizations also received 11K in donations from the Co-op.
Buffalo Go Green
We strive to be an Employer of Choice $16.50 new co-op wide starting wage 80% staff eligible for benefits 132 staff members $22.44 new average hourly wage Mike Simpson Human Resources Manager Seth Brown Elmwood Store Manager Tasha Bendict Bakehouse Manager Andrew Stachura Prepared Foods Manager, Hertel
Financial Statements
2023 2023 Budget 2022 2021 Sales 23,361,389 $ 23,673,542 22,439,871 $ 22,760,844 $ Cost of Goods Sold 14,341,287 $ 14,099,138 13,632,943 $ 13,707,654 $ Gross Profit 9,020,102 $ 9,574,404 8,806,928 $ 9,053,190 $ % of Sales 38.6% 40.4% 39.3% 39.8% Operating Expenses 8,883,197 $ 9,339,867 $ 9,072,595 $ 8,463,067 $ Income (Loss) from Operations 136,905 $ 234,537 $ 265,667) ($ 590,123 $ Total Other Income (Expenses) 40,790) ($ 113,706) ($ 60,419) ($ 2,334,908 $ Income (loss) before Income Taxes 96,115 $ 120,831 $ 326,086) ($ 2,925,031 $ Provision for Income Taxes 38,940 $ 8,400) ($ 83,924 $ 274,800) ($ Net Income (loss) 135,055 $ 112,431 $ 242,162) ($ 2,650,231 $ % of Sales 0.6% 0.5% -1.1% 11.6% 2023 2023 Budget 2022 2021 Assets Current Assets 2,562,626 $ 3,174,416 $ 3,395,753 $ 4,656,534 $ Property + Equipment 5,827,210 $ 6,455,521 $ 6,036,963 $ 4,817,549 $ Operating lease right-of-use asset 2,733,380 $ - $ - $ - $ Deferred Tax Asset 169,000 $ 27,000 $ 119,000 $ 27,000 $ Investments in Other Cooperatives 435,980 $ 394,000 $ 391,202 $ 368,554 $ Notes Receivable Less Current Portion 86,015 $ 68,000 $ 56,606 $ 78,052 $ Total Assets 11,814,211 $ 10,118,937 $ 9,999,524 $ 9,947,689 $ Liabilities Current Liabilities 1,753,173 $ 1,786,000 $ 1,741,130 $ 1,837,688 $ Long term Debt 2,913,303 $ 3,864,000 $ 3,674,310 $ 3,081,418 $ Operating lease liabilities 2,625,315 $ - $ - $ - $ Total Liabilities 7,291,791 $ 5,650,000 $ 5,415,440 $ 4,919,106 $ Equity / Net Worth Common Stock ($80 par value) 1,546,561 $ 1,480,000 $ 1,499,670 $ 1,447,159 $ Preferred Stock ($100 par value) 1,727,000 $ 2,287,000 $ 1,902,000 $ 2,081,000 $ Retained Patronage 1,460,230 $ 1,460,230 $ 1,460,230 $ 1,460,638 $ Retained Earnings (211,371) $ (319,003) $ (277,816) $ 39,786 $ Total Equity / Net Worth 4,522,420 $ 4,908,226 $ 4,584,084 $ 5,028,583 $ Total Liabilities & Equity 11,814,211 $ 10,558,226 $ 9,999,524 $ 9,947,689 $ Income Statement Balance Sheet
We value a Strong Local Economy $13.3M to local economy $23M In sales 643 new owners $150K owner savings $62K dividends Ow ners lik e yo u ar e the hea rt of our co -op 57
