Annual Report - FY2017

ANNUAL REPORT F I S C A L Y E A R 2 017

2017 AN N UAL R EP O RT | 1

FINANCIAL SUMMARY

$31,070,271 TOTAL SALE S (1. 68% LE SS THAN F Y 2016) $128,956 AF TE R -TA X F Y 2017 LO S S ( 0.4% O F SALES) TOTAL SALES

SALE S TO ME MB E R - OWN E R S

35 30 $ M I LLI O N S

$26.99 $24.75

25 20 15

$22.36

79%

$19.76 $17.84

74%

76%

$31.60

$31.07

79%

79%

2016

2017

$28.69

80%

77% 76%

10 5 0

2010

2011

TOTAL MEMBER-OWNER EQUITY

$7.25 MILLION

2012

$8M

2013

2014

2015

FI SC AL YE AR

TOTAL EQ U IT Y

$7M $6M $5M $4M $3M $2M

2010

2011

2012

2013

2014

2015

2016

2017

18,080 ACTIVE MEMB E R-O WN E RS , 1, 635 N E W ME MBER- O WNERS THI S YEAR $241,045 IN MEM BER-O WN ER C OU PON S R E D E E M ED FO R DI SCO U NT S 2 | 2017 AN N UAL R EP O RT

GENERAL MANAGER REPORT Gail Graham, General Manager

Every time I walk into one of our stores, I am struck by what a tremendous job we’ve done in creating our cooperative; all of us, members and staff alike. Since 1979, we have been building strong relationships with local producers, providing good jobs with benefits, and maintaining a work environment where all staff are respected and presented with opportunities to learn and grow. We are constantly working hard to ensure an atmosphere of inclusiveness where everyone, including staff and shoppers, is welcome. We also continually invest in our local communities and support fair trade products that contribute to improving global communities. And let’s not forget about the fabulous food we offer! Indeed, we have much to be proud of at our Co-op.

Recently, I read an article declaring cooking is becoming a thing of the past and that “grocery”, as a retail category, faces obsolescence. The author suggests grocers simply accept this reality and adopt new technologies enabling shoppers the ability to grab “fresh” items off the shelves that maintain restaurant-quality taste for months without refrigeration.

I know not everyone wants to cook, or has the time or skills to do so. Still, I greatly prefer the reality that we’ve worked together to create - a world where people are passionate about access to nutritious, delicious food that not only enhances their health, but brings joy to their lives; food grown in a manner that respects the planet and the contributions of those who produce it.

At the Co-op, we will keep providing you with the competitively priced products you value without compromising the underlying social, cultural, economic, and environmental values we all hold so dear. The Cooperative Principles that guide us are in many ways responsible for the inspiring communal, economic, and environmental impacts that set us apart. It is because of our owners’ commitment to these values that a better way of doing business is possible.

At our Co-op, we truly are stronger together, working collaboratively to create the world we want for our children and grandchildren.

2017 AN N UAL R EP O RT | 3

The Numbers of 2017

M Disc

$24

TOGETHER WE SPENT

$7,818,650 WITH 133 LOCALLY-OWNED COMPANIES & PRODUCERS

$24,589,012 TOTAL SALES TO MEMBER-OWNERS

THAT’S

40.85%

OF OUR WHOLESALE PURCHASES!

234,997 ITEMS RETURNED FOR REUSE (EGG CARTONS, GLASS BOTTLES, REUSABLE BAGS, ETC.)

or

79% OF ALL SALES

TOTAL SALES

$31,070,271

Redeemed Member-Owner count Coupons

$119,599

New LIME* Member-Owners

335

41,045

Total LIME* Discounts Given

$48,820 Total Senior Discounts Given

LIME* MEMBER-OWNERS

1,635

1,495

NEW MEMBER-OWNERS (2.03% INCREASE)

TOTAL MEMBER-OWNERS

18,080

* Limited Income Membership Entry program

81 COMMUNITY EVENTS HOSTED OR ATTENDED

215

DONATED TO LOCAL NON-PROFITS, SCHOOLS, AND COMMUNITY GROUPS

1,170 CLASS PARTICIPANTS TOOK 94 DIFFERENT CLASSES

487 19,968.46

199,282 10¢ BAG CREDITS

257,186 INDIVIDUAL DONATIONS

$129,308.29 RAISED FOR 12 LOCAL NON-PROFIT

PEOPLE TOURED THE STORES

1

+

RECIPIENTS

DOLLARS/POUNDS RAISED FOR AREA FOOD SHELVES FOR THE

DONATIONS, OUTREACH, & SPONSORSHIPS TOTALED

$124,694 PLUS $26,484 FOR MIDWEST FOOD CONNECTION 2017 AN N UAL R EP O RT | 5

BOARD OF DIRECTORS REPORT Mia Taney, Board Chair

Your investment in our local community speaks volumes. How you choose to spend money reflects not only your values, but the ways in which you attempt to positively influence the world.

By shopping at Mississippi Market, you actively support a cooperative business that values organic agriculture, humane animal treatment, fair employee compensation, and a robust local food economy. As a dedicated memberowner, you’ve gone one step further, cementing your personal commitment to democratic control, diversity, equity, inclusion, and food access. Thank you for making a conscious decision to support community vitality and health. You are the co-op difference!

Over the past few years, Mississippi Market has remained successful as food price deflation rates and grocery store competition intensified. Unfortunately, we are not experiencing the profitability we’ve seen historically. Big box retailers, grocery conglomerates, and e-commerce retailers continue to enter the organic and fair trade marketplace at an increasingly rapid pace, oftentimes at the expense of environmental, economic, and social values that each certification represents.

Consumer demand for nutritious and transparently-made products has fueled the fire under conventional retailers, who have shifted gears for fear of losing

6 | 2017 AN N UAL R EP O RT

customers. What initially set us apart from the pack is now becoming main stream. What continues to set us apart is our collective investment in co-op staff, local growers and producers, fair trade farmers, and local community partners and nonprofits.

Co-op staff members are an incredibly important part of our success; your investment supports 229 staff members in our stores. In fiscal year 2017, your commitment to supporting locally-grown, -produced and -processed foods enabled us to purchase $7,818,650 worth from 133 local producers and Minnesota-owned companies. And, when shopping at the co-op last fiscal year, your generosity enabled us to raise $151,178 for donation to a number of local nonprofits and monthly Positive Change recipients. Your investments make a world of difference where it matters most – directly in our own backyard. On behalf of the board, thank you to staff and memberowners for supporting our mission and bringing our cooperative values to life.

W HE N YO U SH O P AT MISSISSIPPI MARKET, you’re making a difference in our community by contributing to a healthier, more sustainable environment while supporting local and fair trade farmers and producers. You are the reason we love coming to work each day - thank you for supporting your Co-op!

Our thanks to you…

YOU SU PP O RT A H E ALTH Y COMMU N ITY ROUNDED UP AND DONATED YOUR BAG TIMES CREDITS

456,468

1,125 STUDENTS LEARNED ABOUT HEALTHY FOODS THROUGH MIDWEST FOOD CONNECTION TOTAL NUMBER OF EMPLOYEES: AT FULL-TIME

229,

73%

YOU SU PP O RT FAIR TRADE FAR M E R S & P R O DU CE RS

636,720 EQUAL EXCHANGE FAIR TRADE BANANAS

1,942,226 CUPS OF FAIR TRADE COFFEE YOU SU PP O RT A STRON G , LOC AL E C O N O MY

910,341 LARRY SCHULTZ EGGS 13,122 BAGS OF WHOLE GRAIN MILLING CHIPS

86,917 LOAVES OF BREAD FROM LOCAL BAKERIES 2017 AN N UAL R EP O RT | 7

M I S S I O N S TAT E M E N T Mississippi Market creates positive change in the community by influencing the production, distribution, and enjoyment of food.

Thanks to you…

O U R D E DICATE D ME MBE R- OWNERS , SH OPPE RS, & STAFF We were recently awarded RETAILER OF THE YEAR by New Hope Network, a natural and organic industry trade group. Your contributions make Mississippi Market a wonderful and accessible place to shop, work, and learn. We wouldn’t be here without you!

3 S A I N T PA U L L O C ATI O N S 622 Selby Avenue, 55104 | 740 East 7th Street, 55106 | 1500 West 7th Street, MN 55102 msmarket.coop |

@msmarketcoop |

@msmarketcoop |

@msmarketcoop