One Mighty Mill Year 4 Impact Report

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one MIGHTY mill PARTNER REPORT YEAR 4 SEPTEMBER 6, 2022

YEAR 4

In year four, we have taken major steps to expand our geographic reach and to fulfill our mission to bring nutritious fresh-milled foods to local communities. After successfully installing stone mills next to our bakery partners in Massachusetts and New York, we’ve decided to build a fresh-milled ecosystem in California. As this goes to print, our mill builder Andrew Hyne is cutting 1,200 lb granite stones for our new West Coast mills. This mill will source local CA-grown organic wheat and supply flour to our West Coast bakery partner.

While the move West is a highlight, we’re proud of our progress back East. On August 1, we fulfilled our commitment to have all our bakery products USDA organic certified. We also signed a number of direct sourcing agreements with organic farmers, all of whom are committed to our supply chain standards to improve soil health, promote biodiversity, and conserve natural resources. These contracts are for a full year’s harvest (and in fact one contract covers the next three harvests) and provide an incentive for farmers to continue to plant additional acreage to support our growth. We are also proud to report that during year four, we served over 600,000 bagels to students in Springfield and Lynn, MA public schools, a significant step in our team’s impact goal of improving access to fresh milled nutritious foods. Finally, we welcomed five new equity owners to One Mighty Mill, as we remain an employeeowned company passionate about changing local food systems.

These highlights for year four show we can deepen our impact in our local communities as well as replicate our model in other parts of the country. If you see opportunities for us to expand our mission in new regions or school systems, please reach out.

September 6, 2022 marks the fourth anniversary of our first mill in downtown Lynn, MA opening and starting to fresh mill organic wheat. Four years into our start-up journey, our mission remains the same: to bring back local food systems that help our communities be healthy and thrive.

5

New employee owners, maintaining our commitment that 100% of full-time employees have an opportunity to become owners in our company.

3M

Lbs of organic wheat under long-term contract from eight partner farms.

3
3 New mills
will
our
Lbs of organic wheat milled in year four, up
70% YoY.
USDA certified organic product lines – Mighty Bread, Mighty Bagels, and Mighty Mini Bagels.
under construction,which
bring
total to ten, collectively capable of milling 5M lbs of flour a year. 1.3M
to
>600,000 Bagels served to Springfield and Lynn school students in year four.

GOAL 1

Support Mighty Farms to Create More Organic Wheat Acreage.

Our bagels, tortillas, bread and pretzels wouldn’t be as delicious as they are if we didn’t start with the best organic wheat. We contract direct with organic farmers who commit to our supply standards, which include extended crop rotations to naturally replace nutrients in the soil, prevent erosion and promote biodiversity to improve crop health, and annual visits from our team. We commit to paying a premium over commodity organic wheat prices and provide opportunities to increase supply to us in the future. We took a big step forward in our procurement strategy in year four and signed direct purchase agreements covering the full 2022 harvest with Peter and Hanna Martens Farm in Penn Yan, NY, Janie’s Farm and Mill in Ashkum, IL and our newest partner, Montana Organic Producers Cooperative.

We prioritize local sourcing and are proud that the Martens’ wheat is a key ingredient in our Mighty Bread. Their Mighty wheat is grown 250 miles from our mills in Blauvelt, NY.

In year five, we expect to more than double our local sourcing, as we contract with farmers in California located near our new milling center and baking partners in northern California.

Lbs of Organic Wheat Milled YEAR 1 YEAR 2 YEAR 3 YEAR 4 150,000 lbs 390,000 lbs 780,000 lbs 1.3M lbs
Nate Powell-Palm, owner of Cold Springs Organics, MOPC Board Vice President.

Profile: Montana Organic Producers Cooperative

In year four, we signed a multi-year purchase agreement with the Montana Organic Producers Co-op, through which multiple organic farmer members in the state will pool production to supply One Mighty Mill with high-protein, organic hard red spring wheat. This provides us a stable source of high quality wheat we can trace back to farms which comply with our supply chain standards. And, it provides the co-op with a direct buyer for years ahead which gives visibility for future harvests, which can allow them to better plan crop rotations and expand organic acreage. Cooperation is at the heart of the Montana organic farming community.

In 2007 the Montana Organic Producers Co-op (MOPC) formed out of the shared belief that farming is better when farmers stick together. What began as a small group of ranchers cooperatively working to pool their certified organic grass-fed beef has grown to a statewide marketing cooperative through which producers market high quality milling wheat, pulse crops, oil seeds and cattle.

MOPC member producers range from first generation oneman/woman farms managing a few hundred acres to large, multi-generation operations stewarding thousands of acres. From the mountain valleys in the west, to the sweeping plains of eastern Montana, organic producers raise the highest quality certified organic milling wheat as part of a rich rotation that builds our soil to be better with each successive generation.

“MOPC formed around the belief that to truly regenerate our land and our communities, producers need to be held accountable to the highest standards of environmental stewardship and product quality. We are excited to partner with One Mighty Mill and see the crops of our member farmers used to produce exceptionally high quality flours that nourish people around the US.” - Nate Powell-Palm

August 2022 harvest from Casey Bailey, co-op member from Clearlake Organic Farm. Nate Powell-Palm

GOAL 2

Build more mills and bring fresher food systems to more communities.

Our decision to build a local, fresh-milling food system in California demonstrates how we follow our core principles to transform food systems. We fulfill our mission by placing our mills close to the communities we feed. We position them next to a local bakery partner, and then source as much local wheat we can. In year four, we have proven we can replicate this model throughout the U.S., with our decision to build a local milling infrastructure in California to support the local market. As we go to print, our mill builder, Andrew Hyne, is completing a new milling system that will be located in northern California. This mill will source local CA wheat and supply flour to our West Coast baking partners. In total, we will have three local milling systems in three regions. Our California mills complement our first mills in Hyde Park, MA which are connected to local bakery partner in Brockton MA, and our second milling system in Blauvelt, NY tied to our baking partner in Nanuet NY. Taken together, these three milling systems (which spin a total of nine stone mills, three in each location), can produce 5M lbs of fresh-milled flour per year. That’s enough to produce 6M loaves of bread or 36M bagels.

OUR NEW MILLS IN CALIFORNIA WILL ALLOW US TO INCREASE OUR LOCAL SOURCING The Central Valley in California is rich with local organic wheat and we are excited to partner and encourage more organic acreage.

20 miles 100 miles We’re building a Mighty food system out West. Bakery Partners Our Stone Mills Local Wheat Farms
West Coast Northern California Mills Bakery Partner Central Valley Wheat OUR MIGHTY FOOD SYSTEM
East Coast Blauvelt, NY Mills Nanuet, NY Bakery Penn Yan, NY Wheat Hyde Park, MA Mills Brockton, MA Bakery Linneus, ME Wheat

Profile: Mighty Miller Leo

Meet One Mighty Mill’s OG Miller, Leo Martinez, the guy that shows up each day and makes sure that the big stones keep on turning and fresh-milling. Leo was One Mighty Mill’s first employee. If you are crazy enough to build a stone-milling bakery with little idea of how to actually stone-mill, Leo is the guy you want riding shotgun: patient, quick to laugh, hard-working, dependable, and always ready for the unexpected on our bumpy fresh-milling journey.

Leo started by overseeing the milling systems at our first Mighty Mill in Lynn MA where he would mill 1000 lb a day and help with the baking and packing of bagels. Leo then helped us build out and pioneer our first 3-mill system in Hyde Park, MA where he continues today, overseeing the milling of 20,000 lb of organic wheat each week.

Leo approaches each day at One Mighty Mill in the same methodical manner: with a work belt lined with Swiss Army tools, a watchful eye for how each new batch of organic wheat will mill, and a new pot of coffee always brewing. When he is not milling, you will find Leo volunteering at his church or eating his eponymous egg sandwich at our Lynn Test Bakery, where he entertains the crew with tales of wheat and adventure and thoughts on Real Madrid’s next game. Leo has always treated his work at One Mighty Mill with the care and detail of a business owner. It’s with great pride, then, that we share with you that Leo’s equity grant has vested and he is one of One MIghty Mill’s many employee owners.

Operator of our Mills in Hyde Park, MA
Number of mills in operation and flour milling capacity per year YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 300k lbs flour 900k lbs flour 1.1M lbs flour 3M lbs flour 5M lbs flour
10 stone mills can produce 5 million lbs of freshmilled flour per year. That’s enough to produce 6M loaves of bread or 36M bagels.

We upcycle to limit waste across the food system.

Since we can’t use all the wheatberry in all our products, we leave behind a portion called the middling. We typically compost this material but seek opportunities for others to use this nutritious bi-product into other local foods. Three breweries – Nightshift Brewery in Everett MA, Trillium Brewery in Canton MA and Newburgh Brewing Company in NY are utilizing our middlings in their beers. We are always seeking more opportunities with like-minded partners to keep all of our organic wheat in the local food system.

GOAL 3

Feeding Mighty Communities

Another key part of our mission is to bring fresh flour to communities beyond the ones with grocery stores that sell our products. That’s why we built our first mill and flagship market and cafe in Lynn and offer a discount to Lynn residents so our bagels were one cent cheaper than Dunkin Donuts’. Four years ago, we made our very first sale of bagels, at cost, to Boston Public Schools, as we sought to provide increased access to nutritious whole grain foods. We’re proud to report that in year four, we served over 600,000 fresh-mill bagels to students at Springfield Public Schools and Lynn Public Schools.

We are excited to work with our school partners to introduce new foods kids love that are highly nutritious.

In year four, we supplied over 600,000 fresh-milled local bagels to students at Springfield and Lynn MA schools. We want to partner with at least one new major school system per year, as we work from the ground up to support food justice.

Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Sep-22 Aug-22 Jul-22 Jun-22 400,000 Bagels 200,000 Bagels 600,000 Bagels Bagels to schools in year 4 Cumulative school bagel sales in year 4

Profile: Pat Tutwiler

Pat Tutwiler is the superintendent of Lynn Public Schools. Lucky for us, he’s also a renegade who won’t settle for the status quo when it comes to his kids.

We first met Pat when he visited our mill just after we opened. He had learned about our partnership with Boston Public Schools. We were serving our fresh-milled bagels and tortillas at-cost to 10 schools in closest proximity to food deserts in the city. (The program was so important to us that we specifically opened our mill on September 6th because it was the first day of school and so that we could produce for the kids.)

As soon as we met Pat, it was clear he believed that if Boston was eating fresh-milled bagels, then Lynn should too. With his support, we started delivering to every middle and high school just a few weeks after that visit.

Every Friday since then, every student in Lynn schools has been able to eat our wholesome whole wheat bagels. Meanwhile, our relationship with Lynn provided the momentum and the proof that we could build a sustainable partnership with school Food Service. Without Lynn, it would have been a lot harder to team up with Springfield. We’re proud to have fed the kids in the city where we started for the last 4 years. And there’s no way that could’ve happened without Pat.

Pat and our Mighty baker Marina who is one of our employee owners! This was taken at our test bakery in Lynn, MA.

Superintendent of Lynn Public Schools

GOAL 4

Build a company the right way and create opportunities for all who work here.

To make an impact on the world around us, we need a committed, engaged team that believes One Mighty Mill will offer them a unique opportunity to grow and become owners in a mission-driven business.

A certified B Corporation.

On October 13 2020, we achieved our goal of becoming a certified B Corporation. We’re proud to continue to be part of a community of leading companies that work hard to have a positive social and environmental impact and commit to balance profit and purpose. For us, this certification formalizes our commitment to our employees, community, and the environment.

Certified organic.

In August 2021, we shifted our bagels and mini bagels to certified organic status, bringing our total USDA certified organic SKUs to nine (3 bread, 3 bagels, and 3 mini bagels). USDA organic certification means that we only source organic ingredients, which further fulfills our mission to support environmental conservation, biodiversity, and soil health.

More employee owners.

We maintain our commitment to make every team member eligible to earn stock after completing one full year of employment. We gave four employees their first equity stakes in One Mighty Mill in year four.

Building a team of Mighty brand ambassadors.

One Mighty Mill wants to share our story with future customers on both coasts. This is why we’ve recruited an army of Mighty Ambassadors to visit retailers and sample our products. All ambassadors undergo extensive training to understand our process and mission and provide valuable feedback from customers back to our team. We are proud to have over 30 Mighty Ambassadors at present and expect this to increase further in year 5.

In year four, we welcomed fIVE new equity owners in One Mighty Mill.

Garima:

Joined us as Director of Quality Control. She has a deep background in food science and safe manufacturing processes. She ensures our organic wheat and milled flour are to specification and our bakery partners to produce the highest quality foods to One Mighty Mill specifications.

Kim:

Leads our sales, merchandising and retail partnerships, joining One Mighty Mill after a 24 year career in several roles at Whole Foods Market. Kim understands how to partner with retailers to bring nutritious foods to customers and is building a team of brand ambassadors to spread our freshmilled mission in store each week.

EmilY:

Is our Junior Designer and Social Media coordinator. She earned her bachelor’s degree in Graphic Design from the University of Massachusetts Lowell. She’s building our community of passionate followers through design and content giving you a closer look at our company and mission.

David:

Leads our merchandising efforts in the East Coast. David is a trained psychologist and educator who loves sharing the fresh milled mission with our passionate customers. In year four, he was instrumental in getting us off the ground in the West Coast, and will now manage our retail sales efforts in the East Coast.

CHRIS

:

Joined us as our Head Miller in NY after working at another start up company in the tech space. Chris’ job is to oversee and optimize our most advanced milling system to date ensuring that both wheat and flour are within One Mighty Mill specifications and delivered to our bakery partners on time.

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