ANNUAL REPORT 20 20
THANK YOU TO OUR STAFF! We have a deep appreciation for the tremendous efforts of our staff members. We are extremely grateful for their dedication and willingness to work hard and adapt during this difficult time. Their role in serving our Saint Paul community has always been essential, and we couldn’t do this work without them. Thank you!
2 | 2020 ANNUAL REPORT
GENERAL MANAGER REPORT CATHERINE DOWNEY, GENERAL MANAGER
HOW TO SUM UP THE LAST YEAR IN 300 WORDS? CHANGE. Gail Graham, our incomparable general manager of 20 years, retired. Our muchanticipated Selby remodel has been shelved for the foreseeable future. A global pandemic continues to wreak havoc on our health and economy, and our country has yet to figure out how to unite as a nation to combat a public health crisis. Food instability is expected to get worse; we will continue to address our part in making food accessible. The ongoing pandemic of racism has been brought to the forefront in our society and we are committed to using our influence to create change.
“YOUR PATRONAGE ALLOWS US TO BE A PRESENCE AND A FORCE, IN THREE SAINT PAUL NEIGHBORHOODS WHERE WE PROVIDE NOT ONLY HEALTHY FOOD, BUT HEALTHY JOBS.”
Fueled by COVID-19, we had sales growth for the first time since 2016. We are issuing a patronage dividend and distributed a gain share to our staff members. Our staff continue to show courage, resiliency, flexibility and grace. They are an inspiration to me as they show up every day to serve our communities. Our strong partnerships with small, local vendors made navigating shortages in the early panic-buying possible and reinforced the power of a strong, local food system. Through it all, you continue to put your trust in us. Sales to members accounted for 76% of our total sales last year — that’s $23.9 million that stays in our local economy. With the multitude of options available to spend your grocery dollars, you continue to choose Mississippi Market. Your patronage allows us to be a presence and a force, in three Saint Paul neighborhoods where we provide not only healthy food, but healthy jobs. Thank you. Let’s pause to recognize what we’ve accomplished together and take pride. I look forward to building the future together; I believe it holds an abundance of possibility and greatness.
2020 ANNUAL REPORT | 3
TOTAL SALES
$31,463,597
$110,380
(3.42% growth over FY 2019)
after-tax FY 2020 profit (0.35% of sales)
TOTAL SALES
SALES TO MEMBER- OWNERS 76%
2020
$31.46 million
75%
2019
$30.42 million
2018
78%
2017
79%
2016
76%
$30.43 million $31.07 million $31.60 million
80%
2015
$28.69 million
79%
2014 5
10
15
$24.99 million 20
25
30
$ MILLIONS $6.04 million
$7.26 million 2014
$6.68 million
2015
2020
TOTAL MEMBER EQUITY
2016 $5.98 million
$7.11 million
2018 2017 $7.25 million
4 | 2020 ANNUAL REPORT
2019
$7.21 million
BOARD OF DIRECTORS REPORT KRISTEN LEE, BOARD PRESIDENT
As we look back over this last year, it’s hard to recognize the current landscape around us. So many things have shifted, and we have been confronted with what feels like constant change. We have been tested and pushed to our very limits both individually and collectively. Mississippi Market has also been steeped in both intentional and unplanned transformation. From the retirement of our longtime general manager to our daily pivoting as a result of the pandemic and response to the deep social unrest of our communities, the staff and board have been faced with many opportunities to create an environment that seeks to thrive and not merely survive. We have approached the unknown with this mantra: With change there is always uncertainty, but it also opens space for new possibilities. We started the year with a plan to hire our new general manager through a national search. After observing the strong leadership of longtime employee Catherine Downey (who stepped into the interim general manager role on March 15, just moments before the world changed), the board decided to shift our hiring process to assess what was already present within the organization and contributing to our success. With every day bringing new challenges, Catherine not only steadied the ship, but she kept it pointed in the right direction, and led with a thoughtful and steadfast style. Catherine brings a fortitude of history, knowledge and passion to the role. Her leadership to support our sales, and the development of the organization as a positive and inclusive workplace (including a $15 starting wage), reflects our mission as a values-driven grocer and a true partner that serves our diverse communities. She will lead us into the future as a bright and innovative thought-leader within our community and throughout the national cooperative industry. This year we have much to celebrate as we “WITH CHANGE THERE continue to embrace and embody the cooperative principles, leading with “Concern for Community.” IS ALWAYS UNCERTAINTY, It takes all of us participating collectively to create BUT IT ALSO OPENS SPACE conditions in which we thrive. Thank you for your FOR NEW POSSIBILITIES.” ongoing co-operation.
2020 ANNUAL REPORT | 5
COMMUNITY IMPACT REPORT Following the cooperative principle Concern for Community, we work for the sustainable development of our community. This year, our community support increased for both immediate food access and ongoing racial justice work.
Due to COVID-19 and the increase in the number of our community members facing food insecurity, we collected cash and food donations for local food shelves in both March and April 2020. Donations totaled 28,883.44 dollars/lbs and supported food shelf operations at:
Hallie Q. Brown, Neighborhood House, Merrick Community Services, Keystone Community Services and Department of Indian Work.
During the month of June, in response to the brutal murder of George Floyd and the continued inequality and oppression experienced by BIPOC in our communities, we routed funding to rebuild our community and support racial justice work. We donated $31,697.35 to Midway United Fund and Voices for Racial Justice.
6 | 2020 ANNUAL REPORT
This total included a $10,000 match from Mississippi Market Co-op and a $5,988.94 donation from Willy Street Co-op.
$5,850
$50,874
in co-op gift card donations to 181 different nonprofits
in sponsorships and outreach
404
participants took a virtual class between April and June, a 3x increase in attendance
26,353
$144,242.40
Wholesale purchases totaled
pounds of food rescued and donated
in Positive Change bag credits and round-up donations
$18,945,518
$27,228
$308,435
in support of Midwest Food Connection, teaching kids about healthy eating
in member-owner coupons redeemed for discounts
Of those purchases,
$7,474,892
were LOCAL, spent with locally owned companies and producers
That means
$123,406
19,312
in LIME discounts given
active member-owners
1,124
1,994
new member-owners this year
total LIME memberships
39.45%
of our wholesale purchases were LOCAL!
DONATIONS LOCAL IMPACT MEMBERSHIP
2020 ANNUAL REPORT | 7
THANK YOU! Due to your generosity, we donated $144,242.40 to 12 local nonprofit organizations this year through our Positive Change program. That total includes over 20,000 10-cent bag credits with donations from nearly 300,000 shoppers, making it truly a grassroots community effort.
July 2019
August 2019
September 2019
$12,162.96
$12,362.40
$12,975.44
January 2020
February 2020
March 2020
$11,796.15
$11,377.18
16,136.68
8 | 2020 ANNUAL REPORT
dollars/lbs
October 2019
November 2019
December 2019
$12,278.29
$12,389.73
$13,240.58
April 2020
May 2020
June 2020
AND
MIDWAY UNITED FUND
12,746.76 dollars/lbs
$10,115.61
$31,697.35 2020 ANNUAL REPORT | 9
FISCAL YEAR 2020
BALANCE SHEET June 30, 2020
June 30, 2019
June 30, 2018
7,552,635
5,785,601
5,721,488
13,857,988
14,585,354
15,250,927
3,097,176
3,076,717
2,911,817
24,507,799
23,447,672
23,884,232
3,056,332
3,020,973
2,416,782
Long-Term Debt
14,190,166
13,318,827
14,250,741
Other Liabilities
0
0
11,600
17,246,498
16,339,800
16,679,123
115,872
116,772
114,462
Class B / Non-voting
6,061,143
5,987,894
5,920,622
Class C / Non-voting
126,500
126,500
127,500
Donated & Other
314,698
338,938
363,481
Retained Earnings
643,088
537,768
679,044
7,261,301
7,107,872
7,205,109
24,507,799
23,447,672
23,884,232
ASSETS Current Assets Property & Equipment, Net Other Assets TOTAL ASSETS LIABILITIES Current Liabilities
TOTAL LIABILITIES MEMBER EQUITY Membership Stock: Class A / Voting
TOTAL MEMBER EQUITY TOTAL LIABILITIES & MEMBER EQUITY
10 | 2020 ANNUAL REPORT
I N C O M E S TAT E M E N T Year Ended June 30, 2020
Year Ended June 30, 2019
Year Ended June 30, 2018
$
%
$
%
$
%
31,463,597
100
30,424,043
100
30,425,422
100
Cost of Goods Sold
(18,945,518)
(60.2)
(18,513,489)
(60.9)
(18,416,819)
(60.5)
Gross Profit
12,518,079
39.8
11,910,554
39.1
12,008,603
39.5
(11,254,694)
(35.8)
(11,358,499) (37.3)
(11,347,089)
(37.3)
(484,110)
(1.5)
(1.5)
(422,804)
(1.4)
(11,738,804)
(37.3)
(11,813,925) (38.8)
(11,769,893)
(38.7)
779,275
2.5
96,629
0.3
238,710
0.8
(426,688)
(1.3)
(270,927)
(0.9)
(339,947)
(1.1)
(183,780)
(0.6)
0
0
0
0
(58,427)
(0.2)
38,082
0.1
38,070
0.1
110,380
0.4
(136,216)
(0.4)
(63,167)
(0.2)
SALES
Operating Expenses Member Discounts TOTAL OPERATING EXPENSES Operating Profit
Other Income (Expenses) Patronage Dividend Income Tax Provision NET INCOME (LOSS)
(455,426)
2020 ANNUAL REPORT | 11
Curbside at the Co-op
CURBSIDE PICKUP Shop online from a selection of our products available for curbside pickup at our East 7th store. Our co-op staff will carefully select and pack your order and bring it out to your car at your designated pickup time. Visit msmarket.coop to place your order! COMING SOON TO OUR SELBY & WEST 7 TH STORES!
1500 West 7th Street Saint Paul, MN 55102 7:30 am–9:30 pm 651-690-0507
msmarket.coop |
622 Selby Avenue Saint Paul, MN 55104 7:30 am–9:30 pm 651-310-9499
@msmarketcoop |
@msmarketcoop |
740 East 7th Street Saint Paul, MN 55106 8 am–9 pm 651-495-5602
@msmarketcoop