Annual Report 2017

annual report & election issue 2017

Come for the Food, Stay for the Community One Year in Photos – Street Party & more!

Eat the Change You Want to See in the World

published by: NEW PIONEER FOOD CO-OP 22 S. Van Buren St. • Iowa City, IA 52240 (319) 338-9441 open daily 7am–10pm 1101 2ⁿd St. • Coralville, IA 52241 (319) 358-5513 open daily 7am–10pm 3338 Center Point Rd. NE • Cedar Rapids, IA 52402 (319) 365-2632 open daily 8am–9pm

IN THIS ISSUE Who Owns Your Grocery Store? p. 6 The Influx of Competition Isn't p. 14 Padding Local Farmers' Wallets

On the cover: The crowd at our Welcome Back Street Party.

Ballot and Candidates' Statements p. 17 Meet Your New Store Managers! p. 24

STORE SUPPORT OFFICE 22 S. Linn St., Unit 2A • Iowa City, IA 52240 (319) 248-6400 open Mon.–Fri. 8am–5pm

www.newpi.coop EDITOR Allison Gnade MANAGING EDITOR Jenifer Angerer DESIGN & PHOTOGRAPHY JoJo Baccam, Mel Roling PRINTER Royle Printing, Sun Prairie, WI

Board of Directors Meetings All member-owners are welcome!

Meetings start at 6:30pm with Owner Open Forum.

September 27, 2017

6:30pm, New Pi Cedar Rapids

3338 Center Point Rd. NE, Cedar Rapids, IA 52402

bership!

nt mem e d u t s r u o t u o b Ask a

ting t e g e k i l f o d in It’s k on! in-state tuiti

October 22, 2017 Annual Owner Meeting - Details on back cover.

October 25, 2017

Or something

6:30pm, New Pi Store Support Offices 22 S. Linn St., Unit 2A, Iowa City, IA 52240

Co-op owners are welcome to share their views with the New Pi Board:

BOARD OF DIRECTORS

(year indicates when term expires) President CAITLIN SLESSOR (2019) (319) 389-6431, caitlin.slessor@gmail.com

Vice President JON FOGARTY (2020)

...

Only

$ 10! ca Ask a

shier!

Treasurer CALVIN NORRIS (2017)

in Made

U.S.A.

(319) 400-4911, jon@jonfogarty.com

(319) 355-2603, cal_norris@msn.com

Secretary ZARA WANLASS (2019) (319) 800-9046, zwanlass@yahoo.com

PATRICK BRICKEL (2020) brickel.newpiboard@gmail.com

KELLI KENNON-LANE (2020) (319) 361-2843, kelli.kennon@gmail.com

JANET RAZBADOUSKI (2017) (312) 476-0943, jraznpboard@gmail.com

NEW PIONEER FOOD CO-OP MISSION STATEMENT New Pioneer is a cooperatively owned business, fully serving the needs of the natural products consumer. We emphasize high quality, fair prices, and product information. We are an environmentally and socially responsible member of the community we serve.

New Pioneer’s mission is to serve the needs of its members and to stimulate the local agricultural production of natural and organic foods by providing a market for such foods.

The Cooperative fully recognizes the value and dignity of work and shall place a high priority on the health, welfare, and happiness of all its employees.

The Cooperative shall strive to set a community standard for the best possible working conditions, training, wages, benefits, and opportunities for advancement for its employees.

New Pi Iowa City's

Aug. 27, 2017

Iowa Bands The Candymakers & The Highwater Mark lit up the party!

W E H AV E A LO N G H ISTO RY O F C LO SI N G O F F T H E ST R E E T F O R A B I G C O M M U N I T Y PA R T Y- B U T I T H A S B E E N WAY T O O L O N G !

annual report 2017 • www.newpi.coop

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#whyinewpi

Y E A R

I N

PI C T U R E S

new pioneer food co-op’s newsletter

F RO M

O U R

I NSTAG R A M

+ 20% off ALL Vitamins, Supplements, & Body Care at ALL New Pi stores all day!

FREE Health & Wellness Fair!

New Pi Coralville Saturday, Oct. 14, 11am-3pm Lots of free samples + a talk by Dr. Terry Wahls at 11am!

Taste local health-focused foods & talk with their local producers, too.

annual report 2017 • www.newpi.coop

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Jon Steinman just ran a successful (hooray!) crowdfunding campaign to support the development of the book Grocery Story – The Promise of Food Co-ops in the Age of Grocery Giants. Jon is also the writer and host of the Deconstructing Dinner television and radio series.

Who Owns Your Grocery Store?

In the age of monolithic grocery giants, food co-ops offer a promising alternative.

Abridged from Jon Steinman's July 28, 2017 article in Canada's The Tyee

Who owns the grocery store you shop at?

I

love this question. It’s an important one, an entry-point into what type of food system we choose to invest in each time we pass through the grocery checkout. If you’re like most, your investment is probably not so much a choice, but

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new pioneer food co-op’s newsletter

an exercise in necessity, habit, or convenience.

Most of us, after all, are sorely limited in choosing which among the grocery giants our food dollars will support.

The national market share of Canadians’ grocery dollars is telling, with over 80% of Canada’s grocery dollars ending up in the pockets of only five companies. In Vancouver, if

you shopped at the once-locally-owned Capers Markets, your food dollars in the past 10 years have been an investment in Whole Foods. If the recent $13.7-billion acquisition of Whole Foods is approved, you’ll soon become an investor in the Amazon empire.

This eroding of competition among the grocery giants also mimics the (un)competitive landscape of the foods found on their shelves.

In their “Grocery Goliaths” report, U.S. NGO Food & Water Watch refers to the companies supplying the stores as the “Monolithic Food Manufacturers.” Indeed they are. Today, two companies hold 99% of the sports drink market, and three companies retain 96% of the market for baby formula, 80% for granola bars, and 77% for ketchup. In a third of the categories researched, the report found four or fewer companies control at least 75% of sales. The figures are almost Orwellian. How have these monolithic manufacturers amassed such concentration? Simple. They pay for it.

Food manufacturers across the globe are shelling out $50 billion a year in trade fees and discounts – requirements established by the grocery giants. In the U.S. alone, these “trade fees” have been estimated at $18 billion. The deeper the pockets of the manufacturer, the better the chance that the grocery gatekeepers

will grant the manufacturer access to the eating public. Perhaps the most dubious of the fees are the slotting fees, where a manufacturer pays the retailer to place their product on their shelves. Once there, the retailers provide little guarantee that the product will remain.

To assure long-term placement, manufacturers shell out a “pay-to-stay” fee.

It matters little to the retailer if the product is unhealthy, lacks innovation, or carries a heavy environmental footprint – the foods on standard grocery store shelves are reserved for the highest bidders. As one report on slotting fees writes, “Supermarkets today are as much about selling shelves to food companies as they are about selling food to customers.”

An article in the Economist captures it best: “So lucrative have slotting fees become, that industry insiders joke that supermarket shelves are now the world’s most expensive property.”

1980s, these agencies and their requisite powers were severely eroded, their powers reserved for only the most egregious of anti-competitive activity. The great mergers of the 1980s and '90s ensued.

The resistance among consumers was not, however, extinguished. One of the most underappreciated responses to this concentration of wealth and power were the hundreds of communities that organized to take back control of their local economies and food supply. They did this by forming food buying groups and retail food co-ops. The first wave of these consumer-owned stores emerged in the Depression era, but it wasn’t until the early 1970s [1971 for New Pi!] and a new wave of community-owned grocery stores did the inspiring food co-op movement of today really take shape.

Here in Nelson, I’m a member-owner of the Kootenay Co-op. Like at any consumer co-op, once a year I gather with my fellow co-owners So what’s wrong with this eroding of to elect a group from among our 14,000+ competition in the marketplace? members to lead the store on our behalf [Flip to For me, it’s the impact the hollowing out of your ballot on p. 16-17 to do just that!]. When options has on my local economy and how I have a question or concern about an existing it prevents the local food butchers, bakers, product or a request for an item, my grocery and kombucha-makers from accessing the store listens with earnest attention. I know the shelves of local and regional stores. These names of most of the people who work in good-food innovators deserve access to the the store and I recognize half of the shoppers. marketplace. They are the entrepreneurs who Last year, the Kootenay Co-op purchased $3.5 are transforming the food supply, but they are million in products from local suppliers, and no match for the flexed muscle of a new flavor I’m not referring to the appropriated version of Doritos. of “local” used by the chain stores. The same In my hometown of Nelson, B.C., any energy and social engagement that attracts investment in the three largest grocery stores me to the busy farmers’ markets is the same results in my community lining the pockets of incentive that draws me into my grocery the second, fourth, and 21st richest Canadians. store. My grocery store is my community.

Not surprisingly, none of these grocery tycoons Not surprisingly, the hundreds of natural live anywhere close to Nelson. Why do we food co-ops in North America, which, for years allow our local economy to be controlled had easily differentiated themselves from their remotely by a handful of companies run by conventional counterparts, are today facing new people who would likely struggle to even pressures from the national and multinational find us on a map? chains, not to mention the recent emergence of regional chains specializing in foods that were So what are we to do? once characteristically “co-op.” The fear among The history books are full of examples of co-ops of this new competition is palpable, but efforts to combat the concentration of wealth there are quite a few characteristics of food coand power within the grocery sector. By 1934 ops that conventional stores will never match. in the U.S., the groundswell of resistance to Food co-ops are democratic: Any memberthe rise of chain stores resulted in 17 states owner of the co-op can run for the board of implementing chain store taxes. In the grocery directors and all members are invited to vote for sector, much was in response to the spread of their board each year. the largest of the grocery giants, A&P, who had Local head-office: The entire management assumed 16.7% of the American grocery market. team running a food co-op is local. No one is Despite intense opposition to it, anti-trust calling the shots from Toronto, Nova Scotia, or legislation succeeded in holding back mergers Arkansas. In turn, cooperative grocery stores and preventing the demise of many locally employ more people than privately owned food-based businesses. By the early owned ones.

Profits remain with the co-op: Any profits generated by a food co-op are re-invested back into the co-op and/or distributed equitably among member-owners.

If you hear anyone alleging that a food co-op is gouging its members, it's simply not possible. The financial success of the co-op benefits the entire membership and co-ops are in the business of providing the best prices to their members while ensuring their suppliers are fairly compensated and the products carry the least environmental impact.

More immune to takeovers: Amazon’s pending acquisition of Whole Foods is a reminder of the risk inherent in relying on privately owned grocery stores. Indeed, Whole Foods is no mom-and-pop retailer, but a takeover of their store(s) by the hungry giants is not a decision that requires approval of the store’s shoppers, as is the case with a food co-op.

A first critical step is to support the shift within the collective conscience of eaters of how we perceive the existing grocery stores operating in our neighborhoods. Just like the buying groups of the '70s, it’s likely necessary for each of us to first arrive at that place of being downright fed-up with the companies currently feeding us. Then the work can really begin toward democratizing our local economy and democratizing our grocery stores.

annual report 2017 • www.newpi.coop

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New Pi Board President S L E SS O R

Your Co-op Needs You

T

he history of the Co-op is rich and fascinating. We’ve helped start organizations that have spun off to do wonderful things for our community, like Table to Table food rescue, and we’ve started some spinoffs that just couldn’t stand the test of time, like the former Morning Glory Bakery and Blue Parrot Café. But through the hard work, determination, and innovation of our member-owners and staff, our stores have grown into beautiful, unique resources for our community. Over time we broadened our offerings, some with heated debates breaking out – like over the introduction of dairy, meat, and coffee (high quality, humanely raised and Fair Trade items your Co-op is famous for these days)! Our growth and change since our inception probably would have been unimaginable to our founders in 1971.

It is with this appreciation for the past that we turn to our future. Our world is changing rapidly. The way food gets to consumers is being totally reimagined at every step of the distribution chain.

Cooperatives continue to face rigorous competition for our shoppers’ natural grocery dollars. I like to think our founders in 1971 would see the spread of organic and local options throughout the private sector as a benefit to everyone. Unfortunately, it’s also putting pressure on the local, independent business we cooperatively own together.

Co-ops serve their member-owners. We don't have shareholders who benefit from our profits. Instead, each and every dollar you invest at New Pi benefits you and our community: it goes to increasing our staff salaries, improving our stores, opening new stores (Yay, Cedar Rapids!), and launching local producers like Old Capitol Food Co. Iowa tofu and Shaktea & Agri-Cultured Iowa kombuchas.

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new pioneer food co-op’s newsletter

so

r

C A IT L I N

le Caitlin S

We hear you when you want gluten free options. (We can make all our sandwiches on gluten free bread for you.) We want to give you a vegan sandwich that is Instagramworthy. (We think our Vegan Cajun Tofuwich fits the bill!) We want to be the first place you stop before you go to a dinner party, and the last place you stop at the end of a long day. But even more importantly, we want to steward the Co-op so that your children, grandchildren, nieces, nephews, and generations to come can do the same.

Let’s work today to build that future New Pi. We need to be ahead of the competition, not responsive to it. At our Board meetings each month, we talk about and brainstorm the future of the Co-op. We pioneered natural and organics in the region and we plan to pioneer the future of the way we eat too.

s

tap al, onht loc r stores! g u o r we b into all ou mmer a This su kombuch

We ask for your support as we move into the future of the grocery industry.

We need you to get excited when we try new things. We need you to let us know when the new things don't work. We need to hear from you about your priorities.

We ask that you trust us and give new things a chance. We know we can't be all things to all people, but in cooperating, we aim to be the best.

deli with the We make everything in our our shelves. on s item lity qua same high

We introdu ced New Pi this fall! Mo student membership s re on page 27.

Here’s your challenge for the next year: Think about what being a New Pi owner means. Share that information with a friend.

Bring a friend along who has never been to one of our stores. We think it's rare for someone to be unimpressed.

The future of our cooperative is exciting. Let's hope the future Co-op is so amazing, that none of us today can even imagine it yet.

Help us get there and cheer for us along the way! Cheer with your everyday power of wordof-mouth, and cheer us on by deciding to put your buying power behind your Co-op – a real, concrete way to affect local change, three meals a day.

Caitlin Slessor New Pi Board President

annual report 2017 • www.newpi.coop

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General Manager M AT T

H A RT Z

Your Co-op's Triple-Bottom-Line

N

ew Pioneer was founded more than four decades ago as the manifestation of a new idea. Our world has changed substantially over these decades, not least in regards to the competitive food market that we now exist in, though our principles as a cooperative have not.

The rapid and dynamic changes with the significant influx of grocery competition have impacted us – as it’s also impacting most existing supermarkets across the nation, though we have a history of adaptation and evolution as an organization that I firmly believe will continue to be the case in the coming decades.

Opening our store in Cedar Rapids has helped offset the impact of significantly increased retail competition in Johnson County, and increased the size of our cooperative with several thousand new owners joining the Co-op. Expanding store space in and of itself is not the answer to supporting a sustainable business long term, as most of our competitors are also expanding, and now new channels such as online operators like Amazon will be entering our market space.

What is most important is asking the “why” of what we do – something cooperatives are built to do in a way conventionally-structured businesses are not.

We are a triplebottom-line business: social, environmental, and financial.

This does challenge us economically at times in the short term, though triple-bottomline in the long-range will have the

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new pioneer food co-op’s newsletter

Matt Hartz

highest positive impact on our world and will be the most financially, socially, and environmentally sustainable.

New Pi has grown significantly in size over the decades, but we remain a small, independent business, and as such can be more agile, with a longer-term view not driven by shorter-term considerations. A Deloitte survey from 2016 showed that:

“87% of people in their 20s and 30s believe the success of a business should be measured in terms of more than financial performance,” – and we agree.

Our Board sets and monitors the policies that govern our organization and ensure appropriate accountabilities are in place.

Our “Ends Policies” are the highest governing directive of the Cooperative and guide our path forward to be: • A sustainable and forward-thinking local food marketplace, defined by: • Shared economics, community enrichment, and partnerships in the Corridor • Widespread and diverse participation • Identifying and meeting the needs of owners and future owners

Local Agri-cultured Kombucha is on Tap

by the bottle or growler – only available at the Co-op! Our new House-made Spicy Vegan Superfood Burgers at our deli are only at your Co-op too!

This coming year we are exploring ways to make Co-op ownership more economically meaningful for households.

Jane

We are also asking ourselves how the cooperative can be more relevant to younger generations, and looking at ways to widen economic access to our good, clean food for our entire community.

We are accelerating our investment in and integration with local food systems. We’re slowing beginning to pull away from a heavy mix of national brand packaged goods that almost every other retailer in the future will have, towards partnerships with local producers to create our own in-house, uniquely local items you can only find at the Co-op.

Additionally, we know that climate change is real and as such are exploring how we can support products and production methods that regenerate our environment and help address climate change.

I want to take this opportunity to express appreciation to our employees, without whom the cooperative could not function.

I also want to specifically express appreciation for retiring Board az ba member Janet Razbadouski. Janet has douski served on our Board for six years, some of those as Board president. Additionally, in her time as chair of the Board’s planning committee, she was an invaluable resource in the development of our Hub Bakery & Kitchen and Cedar Rapids projects. tR

Matt Hartz New Pi General Manager

able We're adding new, afford e. tim the Co-op Basics all annual report 2017 • www.newpi.coop

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Financial Statement N O R R IS ,

N E W

N

ew Pioneer’s fiscal year ending June 30, 2017, was another challenging year within the increasingly competitive retail grocery business. For the fiscal year 2017, New Pioneer experienced an overall Net Loss of $272,246, which was about half of 2016’s Net Loss of $529,108.

2017’s Net Loss also includes approximately $809,000 of depreciation expense, which is a non-cash charge against income. As a result, New Pioneer’s business generated positive cash flow, but sales are not currently recouping its prior capital investments.

As of June 30, 2017, New Pioneer’s overall long-term debt stood at $6,684,953, which was a decrease of $163,433 over June 30, 2016. Member-owner equity was $7,017,262 with total organizational assets of $15,190,149.

The biggest challenge New Pioneer continues to face is the explosive growth of competition, particularly those targeting the organic and natural food segment of the market.

Since 2013, multiple new competitors have entered the Johnson County area, increasing retail grocery square footage by 43%.

P I

B OA R D

T R E A SU R E R

In 2017, total sales for New Pioneer declined 1.3% relative to fiscal year 2016.

Although this trend isn’t exactly new, it will undoubtedly get worse before it gets better. Competitors are slated to open even more stores in Johnson County later this year and next.

By 2018, the overall retail grocery square footage within Johnson County is expected to be 70% higher than 2013 levels.

Fortunately, our management and staff have been working diligently to adapt to this ultra-competitive climate, and they will continue to do so. This is not a quick or easy task, nor is there a single “magic bullet” solution.

I won’t sugar coat it – the next few years will be tough for New Pi. But as we implement the changes we’ve been working on over the coming months, we hope our owners find that our adaptation maximizes the relevance and value of New Pioneer to our shoppers. With the help of our staff and our loyal owners, I have no doubt we will succeed.

By contrast, over the same period, the population of Johnson County has only grown by about 7.9%. As a result, New Pioneer has seen a decline of sales in Johnson County, and only modest sales growth in Cedar Rapids.

Calvin Norris New Pi Board Treasurer

2017*

Operating Activities Investing Activities Financing Activities

287,463 ( 201,650) ($120,013)

Net Change in Cash & Cash Equivalents

($34,200)

C A S H

F L O W $

$

2016

2015

$

( 176,164) $ 30,656 $ 431,627

( 150,507) $ 236,659 $ 161,260

286,119

$

$

$

247,412

*2017 numbers are preliminary and pre-audit

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new pioneer food co-op’s newsletter

rr

is

C A LV I N

o Calvin N

B A L A N C E

2017*

2016

2015

3,566,694 $ 11,184,736 $ 438,719

3,550,843 $ 11,811,276 $ 532,256

3,537,434 $ 9,740,703 $ 341,458

S H E E T

Assets Current Assets Property & Equipment Other Assets Total Assets

$

15,190,149

$

Liabilities & Equities Current Liabilities Long-Term Liabilities Total Liabilities

$

15,894,375

$

1,689,692 $ 6,483,196 $ 8,172,888 $

Equity

7,017,261

Total Liabilities & Equities

15,190,149

$

$

13,619,595

$

1,967,584 $ 6,680,705 $ 8,648,289

$

7,246,086

$

15,894,375

7,723,814

13,619,595

$

*2017 numbers are preliminary and pre-audit

I N C O M E

2017*

S T A T E M E N T

Net Revenue Cost of Sales & Operating Expenses Income from Operations

26,846,791 $ 26,798,686 $ 48,105

$

2016

2015

27,203,486 $ 27,736,083 ($532,597)

$

($133,820) ($666,417) ($529,108)

70,997 $ ( 624,218) $ ( 482,098)

$

Full time employees with benefits:

$

$

$

204 67%

2,155,174 3,740,607 $ 5,895,781

$

$

Number of employees to date:

27,093,780 $ 27,788,995 ($695,215)

N E W PI ’ S PA RT- A N D F U L LT I M E STA F F B E N E F IT S : • 20% Staff Discount • 38% Staff Wellness Discount on Vitamins & Supplements • 401k Retirement Plans Matching 3% (Determined Annually) • Flexible Spending Plans (Medical or Dependent Care Reimbursement Accounts) • Premium Pay for Working Holidays • Paid Bereavement Leave

Other Income/Expenses Income Before Taxes Net Income

($320,350) ($272,245) ($272,245)

$

*2017 numbers are preliminary and pre-audit

• Paid Parental Leave • Military Training/Development Leave • Jury Duty Pay • Life Insurance Coverage N E W PI ’ S F U L L-T I M E STA F F B E N E F IT S : • Paid Vacation & Personal Time • Paid Holidays • Health Insurance • Dental Insurance • Short and Long Term Disability Coverage

esome - including the aw the Over 90 bicyclists d ke bi r ders we sponso Youth Off-Road Ri -op family ride.

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Culinary W alk fu Family at N ndraiser for Field to ew Pi Iowa City. annual report 2017 • www.newpi.coop

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The Influx of Grocery Competition Isn't Padding Local Farmers' Wallets A N D R E W & M E L I S S A D U N H A M G R I N N E L L H E R ITAG E FA R M , G R I N N E L L ,

Y

ou might think that the local boom in grocery stores is helping local farmers by giving us more places to sell our goods, but our numbers show that is not the case. We’ve watched as more and more grocery chains open up near New Pioneer stores, some of those competitors offering our vegetables on their shelves, but the net result is our overall sales to grocery stores in the Iowa City/ Cedar Rapids area have declined. Sometimes more competition doesn’t make us all stronger.

Our sales to New Pi – one of our largest grocery accounts – have declined because New Pi’s overall number of shoppers has declined with the influx of grocery competition, and the new competitors are not picking up the slack for us. This results in us having to service more accounts at more places – which means more time spent communicating, organizing orders, and delivering them – but the addition of those accounts has not made up the difference from our lost sales to New Pioneer. The net effect is that we’re working harder for less return.

Unfortunately, sales per vendor at farmer’s markets across the country are down as well. We’re not exactly sure what is up – maybe the y ar is one of New Pi’s prim big grocery shakeup that’s The Dunham family on wn gro ce, anic produ happening is disrupting suppliers of local, org ell, family farm in Grinn their 5th generation peoples’ shopping habits all od go zen over a do Iowa, and providing the way down the chain to s. job l ura agricult whether they go or how much they spend at farmer’s markets.

14

I OWA

Some markets have become more like festivals, which tend to not have as many people doing their grocery shopping.

Not all grocery sellers are pumping money into the local food economy either, despite what their marketing would tell you. Perhaps we should start thinking of buying at a corporate grocery or online as the equivalent of going to McDonald's – an occasional treat or something you do on a road trip rather than an everyday lunch.

We enjoy working with New Pioneer because it is one of the few organizations putting its money where its mouth is. Ask the produce managers how much of the produce in the store is local and organic and they will tell you. Ask them if they are buying from the farmers featured in the photographs hanging in the produce department (at New Pi they are, at their competitors likely not, or maybe one week a year – they just call those farm pictures décor). In other stores, we've seen our name next to produce we didn't grow.

Being a savvy, food-educated eater is working actively for social change and social justice – but it does require effort and persistence.

If you want to see a more diversified Iowa agricultural landscape, you have the opportunity to vote with your food dollar every single meal – and New Pioneer Food Co-op is a great place to cast your ballot.

Grinnell Heritage Farm is one of New Pi's largest local, organic producers.

Heritage Farm. ets from Grinnell be c ni ga or l, ca Lo

annual report 2017 • www.newpi.coop

15

2017 Voting Procedure the ballot You must hold a New Pioneer Food Co-op owner share in your own name to participate in voting.

• Only the share holder (owner) may vote. Spouses and household members without their own shares are not eligible. The share holder is the name on the mailing address of this publication. You may also inquire at a store register, or call (319) 248-6400, or email ownership@newpi.coop to determine the name in which the owner share is held and confirm your owner number.

• To vote in the 2017 New Pi Board elections, you must have been an owner as of September 7, 2017.

• Read the candidates’ comments ( pages 19-23) and select up to 2.

• Mark your selections in the ballot on the next page, 17, with a pen.

m ak e sur e we c an co unt yo ur ballot !

• ALL information on your ballot must be accurate.

• Be certain to fill out your ballot completely.

• Print your name (your Co-op ownership must be under this name).

• Sign your name.

• Print address and phone number.

• Verify your owner number by any of the ways listed above.

• Cut the ballot as shown ( ) and fold on designated lines. If mailing, please tape at the sides (very important—DO NOT tape at bottom, the post office needs this free of tape). Drop off at any New Pi store or mail.

drop off or m ail promptly • Mailed ballots must arrive at the accountant’s office by October 20, 2017, to be counted.

• You may also drop your completed ballot in a ballot box at any New Pioneer store until store close on October 21, 2017, to be counted.

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new pioneer food co-op’s newsletter

Ballots due By mail: Oct. 20, 2017 In store: Oct. 21, 2017

Ballot

N E W

P I O N E E R

CO - O P

2 0 1 7

This election fills two Board seats.

You may vote for up to 2 candidates.

Matthew Ash Wannette Latessa Doerrfeld Christine Newlin Cal Norris

Complete all fields in this section for your ballot to count.

You must hold a New Pioneer owner share in your OWN NAME to participate in voting. owner name (print legibly) signature address

phone #

owner # Do not guess! An incorrect number will invalidate your ballot. Ask any cashier or call (319) 248-6400, or ownership@newpi.coop

Ballot will be opened and viewed by BerganKDV personnel only.

Results will be announced at the conclusion of the Annual Owner Meeting to be held on Sun., Oct. 22, 2017.

Meeting details on the back cover.

annual report 2017 • www.newpi.coop

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TAPE HERE

Matthew Ash Occupation:

I'm an Application Development Team Leader at UFG in Cedar Rapids. I manage a team of 9 software developers that analyze, design, and build web-based applications for insurance agents and policyholders. On the side, I've built a variety of other applications ranging from student test-taking websites to craft brewery management applications. I love technology and what it can do to improve our lives, but also believe sometimes you need to get away from screens and enjoy the world around you!

Education:

B.B.A. in Economics A.A.S. in Computer Information Systems

Special interests:

Travel (stateside & abroad), nature, gourmet food, live music, and wine.

Q: Please summarize the aspects of your work experience you feel would be helpful to the New Pioneer Board and New Pioneer Food Co-op.

As a team lead for a software development team, my primary responsibility is building relationships that result in the success of a wide variety of software projects.

In addition to relationships with my own staff, I also work with project managers, analysts, and users to prioritize requests and build consensus. In the event consensus cannot be built, I have to step in to make difficult decisions while ensuring the customer's needs are at the forefront in order to meet the company's long-term goals and strategy.

Q: Have you served on a board of directors before? If so, please describe the organization and your role.

No, this would be my first board. I wasn't necessarily looking for a board of directors to join, but I have been in search of opportunities in the community that allow me to give back to organizations that share my values. My interest and love for the Co-op makes this exciting opportunity very worth pursuing.

Q: In your opinion, what is the role of the Board of Directors in the operation of New Pioneer Food Co-op?

The Board's role, in short, is to represent its owners and the values that inspired the Coop's founding. As with any business, the Co-op will face a variety of challenges. The Board is responsible for responding to those challenges, with those owners and values in mind at all times. Additionally, those values should also

be used as a guiding force behind the longterm strategy that the Board is responsible for setting. On a more personal note, I would want to contribute my ideas to help guide the direction of the Co-op to continue being the store at which I'm proud to shop.

Q: As a Board member, how would you guide the Co-op in fulfilling the values reflected in its mission statement?

I would provide guidance by placing the Co-op's values and principles ahead of pure profits. While financial responsibility and success is necessary, it shouldn't be the sole driving force behind any business. The most successful companies and people, in my opinion, are those that believe in doing good for themselves and others, and succeed without compromising those principles. For me, the principles and values of the Co-op are directly in line with my own.

Q: In your opinion, what is the role of the Co-op in the community?

I value humane and sustainable food sourcing, but admittedly I'm not perfect at it in my home. The Co-op, however, helps to keep me motivated, interested, and ultimately hopeful that humane and sustainable food sourcing is possible and practical. That, ultimately, is the role as I see it.

Q: What do you feel are New Pioneer’s primary challenges and how could you help meet these challenges?

With the onslaught of mass marketing that people are faced with day to day, it's easy for consumers to fall into purchases that don't align with their true values – sometimes without them even realizing it. Stores like the Co-op sometimes gain a reputation for being high priced, and that reputation then masks the benefits provided back to the local community. The most important thing the Board can do is ensure that the Co-op's longterm strategy aligns with its values, and that those values are promoted within the community.

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Wannette Latessa Doerrfeld Occupation:

Multimedia Specialist and Owner of S2P Studio (a collaborative media production studio)

Education:

University of Missouri-Columbia - Interdisciplinary Studies (Communications, Sociology, Graphic Design) Adobe Creative Certified Expert (License #10637210) - Illustrator

Special interests:

I am a former Division I College basketball athlete so I enjoy watching college sports.

I have been a professional model for 19 years and a professional mommy for 5 years and counting. I also enjoy running, golfing with my husband, organic gardening, creating art, traveling, and learning new crafts.

Q: Please summarize the aspects of your work experience you feel would be helpful to the New Pioneer Board and New Pioneer Food Co-op.

I have 11 years of experience working in collaborative, results-driven, and creative environments. My expertise spans strategy to execution on the web, in print, in video, and all things marketing. I engage both sides of my brain to take on challenges from both strategic and creative perspectives.

As a business owner, I've cultivated analytical, managerial, and technical skills on top of my solid foundation in visual design and creativity. To put it simply, I like to figure things out from start to finish and top to bottom, to end up with functional, creative, and successful solutions.

I have managed successful marketing campaigns for local businesses that include print, radio, and social media marketing. I am capable of providing insight, ideas, and creativity in order to ensure New Pioneer’s message continues to reach, captivate, and engage the community to join in its mission to provide access to safe, quality food at a reasonable cost.

Q: Have you served on a board of directors before? If so, please describe the organization and your role.

I have not served on a board of directors;

however, I have an exceptional understanding of how a board of directors operates from working for the Cedar Rapids Area Board of Realtors for 5 years. As a staff of just 5 individuals, we worked as a team to ensure the realtor members were provided with the support and services they needed while constantly improving operational efficiency internally. This allowed the board of directors and its committees to focus on how to better serve the community and engage its realtor members while adapting to ever-changing technologies in real estate. My husband is a realtor and previous board president, so I am also very well aware of board responsibilities and the time commitment.

Q: In your opinion, what is the role of the Board of Directors in the operation of New Pioneer Food Co-op?

I believe that the role of the Board of Directors is to ensure quality control while constantly looking for new ideas to increase community involvement and reach. The Board maintains quality control by hiring exceptional managers who ensure that employees are highly skilled and well trained. An exceptional staff means extraordinary customer service which lends itself to customer retention. By being knowledgeable of finances and receiving updates regarding the status of operations, the Directors are able to make sound decisions

for the betterment of employees, local food producers, members, and ultimately our community.

Q: As a Board member, how would you guide the Co-op in fulfilling the values reflected in its mission statement?

The mission statement is reflected in the values I uphold as a business owner and in our household. It is our duty to value and protect the earth by not only promoting sustainable practices, but living them as well. As a Director, one of my focuses would be maintaining exceptional managers with the aforementioned values. This ripple effect to employees and to customers positively impacts the community socially, environmentally, and economically. I would also utilize my skillset to help that message reach untapped segments of our community.

There are still many that may not know exactly what a cooperative is and how each co-op impacts its local community. I would contribute diverse ideas and initiatives to assist in communicating that message effectively.

If elected, I'd be committed to leaving New Pioneer Co-op in an even better place at the end of my tenure.

Q: What do you feel are New Pioneer’s primary challenges and how could you help meet these challenges?

To me, the primary challenges include...

Cont'd. on pg. 23

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Christine Newlin Occupation:

Director of Investment Management Operations, Aegon Asset Management

Education:

B.A. in Anthropology and Religious Studies, Indiana University M.B.A. with a focus on Information and Operations Management, University of Southern California Marshall School of Business

Special interests:

I enjoy family fun, reading mystery novels, cooking, yoga, gardening, and I recently started learning to play piano.

Q: Please summarize the aspects of your work experience you feel would be helpful to the New Pioneer Board and New Pioneer Food Co-op.

I have held various management roles in the financial services industry for over 20 years. This has given me experience with managing the operational aspects of a business, including process efficiencies, project execution, resource management, budgeting, and planning. Through this experience I have developed strong leadership and collaboration capabilities, the ability to work across differing perspectives to address issues in alignment with the organization and its priorities, and experience with leading changes necessary to be successful in an evolving business.

Q: Have you served on a board of directors before? If so, please describe the organization and your role.

I have not served on a board of directors; however in my professional role I serve on and/or lead several committees tasked with oversight of policy compliance, risk management, and strategic project governance.

Q: In your opinion, what is the role of the Board of Directors in the operation of New Pioneer Food Co-op?

The Board is responsible for ensuring the Co-op executes on its mission and meets the expectations of its owners. This is accomplished through providing oversight of and guidance to the general manager, setting and overseeing compliance with key policies, ensuring sound financial management, and providing strategic guidance to ensure the Co-op can continue to fulfill its mission into the future.

Q: As a Board member, how would you guide the Co-op in fulfilling the values reflected in its mission statement?

To remain true to the core mission while navigating the changes in the industry, I will help ensure multiple perspectives are candidly discussed and considered, and will demonstrate willingness to make decisions that are in the best interest of the Co-op's owners.

Q: What do you feel are New Pioneer’s primary challenges and how could you help meet these challenges?

The changing grocery industry and increased popularity of local/natural food present both opportunities and challenges for the Co-op. Increased competition as well as the growth of online grocery and meal kit delivery services will require the Co-op to adapt and change to remain relevant for members and the community. Going through significant change can be difficult for an organization, but the Co-op has a history of growing and adapting to learn from and build on. I will be able to apply my experience in leading changes needed to adapt to the developments in the financial services industry to help the Co-op continue to fulfill its mission in a new environment.

Q: In your opinion, what is the role of the Co-op in the community?

The Co-op sets an example for stimulating and supporting local businesses and industries, as well as providing opportunities for employees to thrive and grow in a respectful and healthy environment. I believe continuing to find ways to promote these ideals among members and the community is critical for the Co-op to remain true to its mission and help create a stronger community for everyone.

annual report 2017 • www.newpi.coop

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Cal Norris Occupation:

For the last 25 years I’ve worked at AEGON USA Investment Management, LLC, where I am currently the U.S. interest rate strategist and a portfolio manager for several institutional fixed income portfolios. For 18 years I also taught various finance-related courses as adjunct faculty within the Henry B. Tippie College of Business at the University of Iowa.

Education:

I have a B.B.A. in Finance from the University of Iowa, an M.B.A with an emphasis in Finance and Management and Organizations from the University of Iowa, and I hold my Chartered Financial Analyst designation from the CFA Institute.

Special interests:

Spending time with my family, home improvement, working on old cars, and officiating high school and college football.

Q: Please summarize the aspects of your work experience you feel would be helpful to the New Pioneer Board and New Pioneer Food Co-op.

For the last 25 years, I have worked for AEGON USA Investment Management in various finance and management-related roles. One of those roles in particular, my experience as a financial analyst of retail companies, would be very helpful to New Pioneer and its Board. Also, for 18 years I taught various finance courses for graduate and undergraduate students at the University of Iowa. This background has provided me a thorough understanding of sound business principles and the knowledge necessary to help New Pi achieve its mission within today’s complex and highly competitive business environment.

Q: Have you served on a board of directors before? If so, please describe the organization and your role.

Yes. In July of 2002 I was appointed to New Pi’s Board of Directors, and served until my term ended at the end of that year. I was again appointed to the Board in July of 2004 and then served an elected term through 2007, and then two additional elected terms from 2011 through today. I have served on the Board of Director’s Finance committee since 2002, and I am currently the Board's Treasurer.

Q: In your opinion, what is the role of the Board of Directors in the operation of New Pioneer Food Co-op?

The Board of Directors makes policy and supervises the General Manager. It has been entrusted by the membership to make sound

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financial decisions and ensure the organization succeeds in achieving its mission. Above all else, the Board must advance the core values of our society and hold them in the highest priority both now and in the future.

Q: As a Board member, how would you guide the Co-op in fulfilling the values reflected in its mission statement?

I am whole-heartedly committed to the cooperative spirit and the values New Pi was built upon. Like most of our members, I have a strong social conscience, too. However, I also have a great deal of formal business training and practical experience in both New Pioneer’s business activities and in finance. I believe this combination of values, skills, and existing institutional knowledge puts me in a strong position to help our Co-op thrive, without losing focus on who we are and what’s important to us.

Q: What do you feel are New Pioneer’s primary challenges and how could you help meet these challenges?

The competitive landscape within the grocery business continues to intensify, particularly within the organic, local, and sustainable segment of the market. Several food retailers have opened new stores in Johnson and Linn counties, saturating the market. At the same time, the migration away from physical social connections to digital social connections has continued to accelerate. These factors have significantly challenged the value proposition our memberowners achieve by shopping at New Pioneer.

My goal is to help New Pioneer adapt and evolve during these turbulent times so we

may remain relevant to both our memberowners and the community at-large.

Q: In your opinion, what is the role of the Co-op in the community?

At its core, New Pioneer exists to bring people together. This includes farmers sharing naturally grown foods with health-conscious consumers, and members coming together to share and reinforce their common values.

I believe it is this connection with others that defines us and binds us to each other and to our community. New Pioneer has an affirmative obligation to actively promote this community spirit within our organization and within our community at-large.

Candidates cont'd.

Wannette Latessa Doerrfeld Continued from p. 20:

...competition, expanding and scaling successfully, and nurturing diversity while engaging the established subculture that understands the Co-op’s vision. We should be diligent and thoughtful in answering the question, "Why should everyone shop the Co-op?"

With more natural market chain competitors moving in and big chain grocers adding organic sections, there is a greater need for education and outreach. The more community outreach and education we can provide from within, the easier it is to demonstrate that New Pioneer Cooperative is accessible and beneficial to all. Initiatives and marketing campaigns that focus on youth Co-op education are important so that we cultivate future safe food producers, members, shoppers, and our culture. I can help present ways to create awareness and youth educational initiatives through both grassroots and via cost effective social media.

Q: In your opinion, what is the role of the Co-op in the community?

The purpose of a cooperative is to bring people with a common need together. In the community, the Co-op is an educator.

It reminds everyone of the importance of supporting local and sustainable living.

The Co-op is also a grassroots organizer. By promoting diversity and listening to the needs of the community, it empowers individuals to get involved while working towards a healthier and more informed community with sustainable values, which will positively impact not just the local community, but the world.

Finally, the Co-op is family. That warm, friendly feeling you get when you walk in the front door is real. When everyone's voice is heard and welcomed to participate, it creates an environment of personal investment and responsibility. “Family” is about ensuring everyone is cared for (patrons, employees, members, food producers, and even buildings).

The Co-op’s values are reflected in this atmosphere.

annual report 2017 • www.newpi.coop

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Meet Your New Store Managers A L L IS O N Kirsten, right, with her fiancé e Marian, le ft, also a Co-o p staffer!

Kirsten An till N ew Pi Iowa

City

IOWA CITY STORE TEAM LEADER KIRSTEN ANTILL “I have my grandmother to thank for introducing me to the Co-op. When I first walked through the doors, it felt like home.”

We really put Kirsten through her paces: “Actually I applied for a job here and didn’t get it,” she recalls. Thank goodness she’s tenacious and reapplied, after 7 years at a cinema. Once we hired her on – “It felt good getting out of the corporate world and working for a local organization providing good, fresh, healthy food,” [you don’t want to know the calories in movie “buttered” popcorn] – she moved up in the organization, comet style.

Cashier at New Pi Coralville, then Supervisor, then Customer Service Lead, then Assistant Store Team Lead (assistant store manager), and now she’s our Store Team Leader (store manager) at New Pi Iowa City – in three short years! That’s no accident: “I set myself a goal of getting into a management role in three years.” How’s that for an example? Plan it, believe it, do it, done.

“I love watching my team members grow in their positions and grow their skillsets, and seeing that pride. That’s what I take pride in, and that’s why I do what I do. Plus we’re all about supporting our community, our local farmers, and achieving goals of sustainability. Co-ops started the good food movement, and we take pride in that too.”

What’s around the bend at New Pi Iowa City?

“We’ve been brainstorming ideas to improve our facility. We’re improving working conditions for staff, providing more break space to step away from work, and trying to build up morale.” (New competition never helps morale.) “We’ve been upgrading our lighting, we’ll improve our deli, and we all know our restrooms need help!”

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In her personal life, Kirsten’s been working up plans for a sustainable shipping container home with her fiancée, Marian. They have a design, they have a shipping container – all they need is the land! (Know of a steal for an acre or more around Iowa City? Hook them up!)

CEDAR RAPIDS STORE TEAM LEADER Shaun S JESSE KOOLBECK w New Pi C eeting “I started at the Co-op deli back in ’06 as just oralville a 23-year-old. It was my first fulltime job!” Jesse moved over to customer service for about 8 CORALVILLE STORE TEAM LEADER

years, becoming its Lead in Iowa City. He helped SHAUN SWEETING

open our Cedar Rapids store in 2014 as Grocery Shaun and his wife Julie Parisi (of local Zaza’s

Lead, “learning the other side of the business,” Pastas fame!), “Already shopped a lot at the Co and helped in grocery land at our Coralville and op for good ingredients – we like to cook and

Iowa City stores too. Our stores all have: “unique it’s very important to have good ingredients!”

personalities – but the soul is the same. So But a family health shock motivated them

much positivity. I really love the people I work to fully commit to healthy Co-op groceries:

with, and I love helping people find different “My father never lead a very healthy lifestyle –

areas to succeed and grow in at the Co-op McDonald’s, Wendy’s – when he was 60, with

no warning signs, he had a heart attack and a – it’s my favorite thing.”

We’re unique in our community: “Unlike stroke at the same time. That really forces you traditional stores where the food has so much to take a look at your own life.” junk in it, you don’t have to read the ingredient His senior year in college, he worked part labels on the things we sell at the Co-op, and time in grocery at New Pi Coralville: “I learned you don’t have to worry about what you’re a lot about work ethic, how to be productive, consuming.” We aim to make grocery shopping and find efficiencies – I had great Co-op teachenjoyable: “I love the positive atmosphere we ers. And I learned about eating more healthfully try to engender. While there’s always room for and sustainably.” improvement, it’s important that our customer After finished his second degree (in business service is known throughout the Corridor as the – marketing), he left for a fulltime marketing job: best around.”

“The hours were great. The pay was great! But Jesse and his wife Jocelyn welcomed their it was sucking my soul.” We hired him back as daughter Corrina into the world this past Iowa City Customer Service Lead, then Cedar February: “I’m a new father, and I enjoy it more Rapids Assistant Store Team Lead, and now, than anything I’ve ever done in my life!” completing his three-store tour, he’s back in Coralville as our Store Team Leader!

What’s coming up at New Pi Coralville? Lots of little improvements like energy-efficient LED lighting in our cases, new kid (and parent) friendly carts, behind the scenes environmentally responsible refrigerator upgrades, plus some general facility improvements.

Shaun and Julie have two little ones – Stella is one and half and Hugo will be three in January – and we’re pleased to share that your support for Zaza’s Pasta’s over the years has helped them grow, now into 30 food co-ops across the country! (Haven’t tried it? It’ll be on special at your Co-op in October!) “If I ever think I work too hard, I just look at Julie and how much she’s s accomplishing.

I’ve gotta keep up with her!” id ap R ar Ced

ck JessePiKoolbe New

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Al

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J e n if er A n g

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Co-op Outreach

G e n i e M ay

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J E N I F E R A N G E R E R , N E W PI M A R K E T I N G M A N AG E R & G E N I E M AY B A N K S , N E W PI M A R K E T I N G CO O R D I N ATO R

Grocery Choices Matter

W

e know there are more options than ever before when it comes to deciding where to spend your grocery dollars. But there is one place that is uniquely different: your Co-op.

Yes, YOUR Co-op – you own it!

We’re frequently asked: “Why should I shop at New Pi?” or “Why would I pay more?” Those are questions we love to answer. We enjoy seeing the “a-hah…” moment on peoples’ faces!

Why should I pay more to shop at the Co-op?

The easy and truthful answer is: you are not paying more.

When you truly compare apples to apples – or organic milk to organic milk – New Pi’s prices are the same or less. We do our own price audits with our competitors to make sure.

To compare an organic gallon of milk to a conventional gallon of milk would not be a fair or accurate comparison, since they are not the same product, but we’re often put up to that unfair comparison. When you buy that gallon of organic milk, you’re buying milk free of rBGH growth hormones, from an animal that is humanly raised and organically fed (no GMO feed). Conventional (cheap milk) is the exact opposite – the animals are confined, likely never feeling the warmth of the sunshine on their backs, they are fed growth hormones to produce greater yields and antibiotics in their everyday feed to counter their unhealthy living conditions, and they’re fed GMO grain. These are not ingredients I want to put into my body and certainly not my childrens’ bodies.

Many stores claim to be some variation on “your local neighborhood grocery.” They’ll also claim they support local farmers, or claim they

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have humanely raised meats or 100% sustainable seafood. But for many, those claims are simply green washing.

How are we more of “your neighborhood grocery” than anywhere else?

Let’s start with the fact that you are an owner of New Pioneer Food Co-op. You all OWN IT!! Our community owns 100% of this business – and any community member who wants a voice in this democratically-controlled grocery can buy a Co-op share and provide direction in what we become! Every owner has equal say – an equal vote. Over 35,000 people believe so strongly in our mission (see our mission statement inside the front cover), they’ve invested $60 to buy a lifetime share in the business and ensure they have a community-controlled grocery to shop. These equity shares are invested in the business to allow us to make capital improvements. This is how co-ops work. And because it is a share in the business, anyone can sell their share back to the company and receive their $60 back.

How do we support our neighbors better than anywhere else?

New Pi partners with over 130 LOCAL farmers and producers (and by “local,” we mean the state of Iowa or within 250 miles of our stores, not South Dakota or Ohio) – as honest partners. We work with them year-round, and our local produce is from many of the same growers you see at the farmer’s market – and at the same prices. We make sure our growers and producers are paid fairly for their work, at prices they help set.

We give their products preferred placement on our shelves, and put local producer profiles on their products (not on products that look like theirs but are actually from California, like our competitors have been known to do!) to push local products over others. To further encourage purchases of local items we give New Pi owners a 5% discount on many local items, every day!

Local producers rely on us to sell their products and when our sales falter, so do theirs. Turn to p. 14 for the inside story. Our local producers are feeling the same hurt that we are from the competition. For many, their products are not in the other stores – or not featured as prominently in the other stores – and when consumers shop for similar products elsewhere, the local growers ultimately take the hit. Some have been asking us how they can help, as they’re seeing their sales decline.

More important differences: Our product selection is focused on local and organic. We care how the earth is treated in the production and development of food.

We hold our products to high standards, and standards matter!

Our meat is all humanely raised (ALL – not “most,” or “some”), with no antibiotics or growth hormones, ever!

100% of our seafood case is sustainable – 3rd-party certified sustainable by the Monterey Bay Aquarium – the highest standard for 3rd party seafood certification.

Similar claims made by other groceries don’t usually hold true. Some grocers self-certify the sustainability of their goods – which aren’t typically as high of standards as 3rd party certifiers hold. Don’t believe everything you are told; ask questions! Ask us!

Yes, our ribeyes and salmon are going to cost more. Why? Because they are higher quality, plain and simple.

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rships! ram geared especially toerswhardip is a none b m e M Student ounce we added a new pseromgester! A Student My estmubdents the Co-op

ll n it g of this fa ited to an or univers We’re exc nts at the beginnin es college iv g t a th e d hip to vote or college stu 0 annual members ot eligible n re a rs e r.

1 a b $ e ble), and it refundable nts for the school y rship, Student Mem (so it is not refunda cou O wne pany owner dis $60 Co-op n a share in the com sehold. e tance. m ti fe li ow hou food assis ’t n re in Unlike a o ti d n d e e ll y e ir ro e n idends, th er than th r people e receive div udent rath ssibility program fo st e th to s e e on an acc only appli o working ls a re a e W

The sandwiches and soups from our deli are prepared with these same high quality, clean meats, organic produce (local when available), and our house-made hearth breads. No one else can claim that. Ask! To us at New Pi, Food Standards Matter: Local matters Quality matters Humane treatment matters The environment matters Community matters Fair pay matters Staff pay & benefits matter And it matters to you too, because you’ve made the investment in your community co-op: New Pioneer Food Co-op. Thank you and keep up your support!

Jen Angerer

New Pi Marketing Manager

Genie Maybanks

New Pi Marketing Coordinator

You can't bea t lo organic Kalon cal Iowa City sweet corn, lo a melon, and a burger on ou cal Pretzilla buns r new from Milwauke e, WI!

annual report 2017 • www.newpi.coop

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p hy

L I N DA

L i n d a Fr i t z - M ur

Purchasing Manager F R IT Z- MU R P H Y

Products: What’s Around the Bend at the Co-op?

A

s our competition keeps rising to the occasion of offering more and more in the way of organic and natural products – which we’re glad to see, since building a market for these products is our mission, and it shows we’ve been successful in this endeavor – it becomes more difficult for small, independent businesses to “stand out” from the big box crowd. While the very foundation of a cooperative business structure is vastly different than that of a traditional business – and thus a compelling reason in and of itself to shop at New Pi – our purchasers still embrace this competitive landscape as an opportunity to do more with our product offerings and set ourselves apart from our competition. We want to focus on two different perspectives: 1) partnering with small and local vendors in new and more meaningful ways, and 2) delivering high quality foods in new and convenient options.

Partnering With Small & Local Vendors in New and Meaningful Ways We are proud of New Pi’s history of strong, mutually-supportive partnerships with local vendors. We’ve structured our produce policies to give the farmers we work with assurance ahead of time, via annual contract, of what items we will buy from them during the growing season ahead. While this seems obvious to us, other grocers don’t give local producers that guarantee. This assurance from us allows them to plan accordingly and sometimes take constructive risks they wouldn’t be able to take without New Pioneer’s support.

As you likely know, our current agricultural system and mainstream grocery system do not provide support for or entry points to the grocery market for small and organic farmers, so our goal is to be a good partner and provide business opportunities they wouldn’t otherwise have. We’ve been working to develop systems that allow us to expand on this philosophy and provide a springboard for local vendors to thrive and evolve. In this way we serve our community as a small business incubator.

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Delivering High Quality Foods in New and More Convenient Options Life these days feels particularly busy. We understand this, and we want to be of service to people who crave quality, slow foods, despite the reality that schedules are hectic and many folks are eating on the run. We’ve been brainstorming ways to answer this need as we move into the next few years. We also want to continue to be good stewards of the environment and explore more products that can be sold in bulk to allow our shoppers the opportunity to reduce packaging and purchase the exact right amount for their needs, both to reduce food waste and for their convenience.

Here’s a brief look back on the year and how we’ve worked to put these two concepts into practice: • We introduced bulk, self-serve local kombucha in all three stores featuring local producer Agri-cultured from Waukee, Iowa. This new program has, in turn, provided stability for this local producer to expand her business. Additionally, it lets our shoppers enjoy the environmental and economic benefits of buying this product in bulk.

New Nitr o at New P Coffee on tap i Cedar R apids

• We have scoured the local business landscape via farmer’s markets, social media, and small business incubator NewBo Market for the best in local products, adding many new lines to our shelves in the last year – including local Mama Joy cookies which are paleo, gluten free, and vegan, not to mention delicious!

• In our Cedar Rapids store we launched cold brew and nitro coffee on tap from the beloved Cedar Rapids coffee house Brewhemia. And at our stores in Johnson County, we’re now bottling our own house-made cold brew coffee brewed with beans from popular local roaster Wake Up Iowa City! We hope to bring on tap nitro

ew with Cold Br beans! d e w e r a House-b Wake Up Iow l a c lo

Our House-m ade local Pro tein Snack Pa cks!

coffee to our Johnson Country stores in the future, in addition to the canned nitro coffee we already offer in our coolers.

• Our prepared foods crew created new house-made snack packs (Local Prairie Breeze Cheese! Hard-boiled local, cage-free eggs! Walnuts and local, humanely-raised Beeler’s ham!) to serve the busy person who wants to keep eating local, fresh foods even when life demands that they be on the go.

• In our Coralville store we’re launching our first round of soft-serve real ice cream from local Hansen’s Dairy’s famous cream!

And we’re just getting started! What would be meaningful to you? We would love to hear from you on how to better serve our community, because after all, we are the community.

Linda Fritz-Murphy New Pi Purchasing Manager

Our ma (local gra de-to-order Korean ssfed beef! ) are gettin BBQ Tacos g rave rev iews. annual report 2017 • www.newpi.coop

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New Pi Board Vice President J O N

F O G A RT Y

Co-ops & The Competition: What’s The Difference?

I

’m not simply going to tell you that spending your dollars with locally owned businesses keeps them in the community – we’ve all heard it a million times, and it is all true! But let us talk about mission, dedication, and relationships.

As a consumer-owned cooperative, our longterm goal – your Co-op’s mission – is to serve you by growing our local and regional food system, which requires being a successful grocer. The natural/organic channel of the grocery industry has seen a number of new chains start up in the last eight years, fueled by either going public or having a private equity firm buy a piece of the company. Their business plan across the board is to open a bunch of stores and then sell the company: they are purely financially driven.

This increased competition in our area has led us to increase our focus more and more on what we sell and who we buy from. With increased competition, the national brands we’ve sold for decades are now available in more places than ever before.

Food co-ops have been leaders in the natural/ organic channel of the grocery industry for years, but...

the competition continues to slowly copy the practices we have pioneered. While this is a good thing, they unfortunately don’t copy our practices with the depth or dedication needed to benefit our local community.

Looking at eastern Iowa, no one has been able to come close to New Pi’s ability to work with small food manufacturers, as well as small- to medium-scale farmers and ranchers producing

Jo

nF ogarty

high quality food. New Pi depends on the health of these farms and ranches for our livelihood as much as the farmers and ranchers depend on us as a venue to sell their products. Those relationships represent a mutually beneficial existence for producer and retailer. New Pi has been very effective at increasing our local purchases and, in turn, contributing to growing our regional food system.

We have worked hard to more than double our sales of local products from $ 1.44 million/year in 2010 to $2.92/year in 2016.

I encourage you to look at how many local producers the competition has on their shelves and compare that to what you find at New Pi. This exemplifies our dedication to our local producers and our owners, developing local relationships to source healthy, local foods.

We know that you have more options these days for where you purchase your milk, frozen burritos, and potato chips. We want you to know that we are here to serve you and grow our regional food system. That is our mission as a business.

Where you spend your dollars matters, and when you spend them at New Pi – on national brands or on local products – you are helping us grow the region’s food system. Regardless of what you purchase at your Co-op, those purchases directly support Iowa’s food producers.

Jon Fogarty New Pi Board Vice President

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new pioneer food co-op’s newsletter

. info about all the pictures here

James Nisly

of local Organic Greens offers samples of his organic sprouts at New Pi's August Street Party.

Jeanne Hansen & Karen Sewick of lo cal Hansen's Dairy se rve Co-op cake mad e with their cream at the Culinary Walk.

daughter Jessica Stutsman and her m grow Far ek Sophie of Dirty Face Cre -op.

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Jake Gratzo n Capitol Foo (right) & company of d Co. make Old lo for the Co-o p (it's in all cal, organic tofu of our tofu d ishes!)

annual report 2017 • www.newpi.coop

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VOTE! VOTE! BALLOTS DUE OCT. 21 IN STORE.

22 S. Van Buren St. Iowa City, IA 52240 (319) 338-9441 open daily 7am–10pm 1101 2nd St. Coralville, IA 52241 (319) 358-5513 open daily 7am–10pm 3338 Center Point Rd. NE Cedar Rapids, IA 52402 (319) 365-2632 open daily 8am–9pm www.newpi.coop Change Service Requested

ANNUAL

your purchase of

or more!

VALID ONCE PER CO-OP OWNER GOOD THRU OCTOBER 31, 2017

Iowa City . Coralville . Cedar Rapids

PLU 3011

25

$

& Co-op Potluck!

Bring a dish to share!

We’ll provide the drinks, New Pi style!

Meeting & Round Table Discussion of Your Co-op’s Direction to Follow

Sunday, October Sun., October 26,22, 2-4 PM

PARK LODGE AT TERRYROOM TRUEBLOOD RECREATION AREA THE KIRKWOOD AT GOVERNOR'S RIDGE 579 BLVD., IOWA CITY 515MCCOLLISTER KIRKWOOD AVE., IOWA CITY, IA 52240