board development
committee
The Board Development Committee is responsible for educating the Board of Directors & organizing functions of the Board.
As the Co-op continues to grow, the Board also must grow and change how we do things. As you can see in our report, we have been
re-evaluating and changing some of the ways we do things.
Board Development Committee (BDC) projects for 2013:
~ Implemented 2 new systems that affect how we run our monthly Board meetings
• usage of a ‘Consent Agenda’ to make better use of our formal meeting time.
• adoption of a ‘modified consensus’ model for reaching decisions/consensus on issues in a more democratic and inclusive way for greater unified outcomes.
~ Several directors and staff attended a Cooperative Board Leadership Development program at Rising Tide Community Market in Damariscotta last Spring.
BELFAST
CO-OP
~ In January we joined the CBLD/Cooperative Board Leadership Development program run by CDS Consulting Co-op. This
national cooperative consulting co-op helps support co-op boards & management to run co-ops more successfully by building
collaboration with other regional co-ops, providing leadership training and consultation services specific to co-ops. Several directors and staff took advantage of offerings in Keene,NH this winter which has afforded us great collaborative and learning opportunities.
~ Participated in a statewide Maine Food Co-op Conference in Augusta in February 2014.
~ Presently planning our Board Annual Retreat in April on ‘Exercises in Policy Governance for Our Co-op’.
~ Looking forward to utilizing our CBLD consultation time in continued effort to ‘professionalize’ our BOD to carry on the work of
guiding the Belfast Co-op.
celebrating
the International Year of
Sunday, March 23
(March 30 snow date)
at the University of Maine Hutchinson Center
80 Belmont Avenue (Route 3) Belfast, ME 04915
BELFASTCO-OP + 123 HIGH STREET + BELFAST, ME
a letter from the
general management
team
board of
directors
Chris Grigsby
Mylisa Vowles
Joe Jordan
Bindy Pendleton, president
Debbi Lasky, vice president
Jerry Savitz, treasurer
Phil Prince, secretary
Jeanne Gail, scribe
Jane Awbrey, staff rep.
Doug Johnson, staff rep.
Ron Braybrook
Cindy Canavan
Betsy Garrold
Chris Groden
Jean Lenderking
Paul Nyren
Kip Penney
Meg Peterson
Janis Stone
Zafra Whitcomb
Dear Fellow Co-op Member-Owners,
equity
2013
2012
It is that time again to reflect upon this year’s Co-op highlights, challenges and directions. I invite you to read through
the Annual Report and see if indeed the Co-op is going in a favorable direction. Attending the Annual Meeting (A.M.) gives one
greater perspective, a chance to ask questions and enter into cooperative discussions with fellow members. A cooperative or
community thrives best when its members keep informed and participate.
member deposits
patronage dividends allocated
retained earnings, beginning
prior period adjustments
net profit (loss)
retained earnings, ending
TOTAL EQUITY
$70,598
$56,009
$285,331
($86.00)
$55,484
$340,729
$467,336
$70,598
$17,047
$221,002
$0
$64,329
$285,331
$372,996
Participation can take many forms:
- At the conclusion of last years Annual Meeting, several members stepped forward to participate on Board committees. This
allowed the Purchasing Policy Committee to become more active. After many discussions and meetings they are ready to
propose a new draft Purchasing Policy to members & directors for comments.
- Participation can take the form of serving on the Board of Directors. For the first time in the history of the Co-p all seventeen seats of the Board are filled and we have enough candidates running so that you will have choices in voting. This is not a
popularity contest, please vote for those you think work cooperatively with others, will do their share of work, and represent
the diversity of Co-op member-owners.
- Participation can also take the form of simply purchasing products you not only want to eat but also help support local family
farms, and a way of farming that is more sustainable.
- Last but not least, attending the Annual Meeting keeps you informed and provides the opportunity to chat with other
member-owners. This year’s featured speaker will be MOFGA’s new executive director, Ted Quaday.
One of the directions that the Board and Management continue to emphasize is the development of a strong,
resilient network of local and regional sustainable agricultural systems. It makes sense to us that one of the best ways to
ensure that we continue to have plenty of local, healthy food is to support farms and food producers in our area. Local
products may sometimes cost more or have limited supply, but in purchasing them we are keeping our dollars in the community and ensuring that our neighbors benefit from our spending. We continue to expand our benchmarks and expectations
regarding the local products we purchase and for fiscal year 2013 we are pleased to announce that we surpassed the $1.5
million dollar mark, which represents a twenty-five percent increase from 2012. We launched and continue to develop our
locally-grown Co-op brand label, beginning with frozen vegetables processed at Coastal Farms. Included in this effort, the
Co-op continues to sponsor events that educate on how to grow, use, and store local produce and other products.
Challenges we are grappling with include honoring the growing diversity of our membership, encouraging and
increasing member-owner participation, and continuing to strategize ways to keep the store flourishing despite wide weather
and economic fluctuations. We are pleased to announce that we will be returning a Patronage Dividend back to the membership in the spring,
and the amount will be nearly three times what we were able to return last year.
Please come participate in your community food co-op’s Annual Meeting on March 23rd. We are featuring a fantastic
speaker, local farmers and vendors, and of course, great food prepared by local chefs.
respectfully submitted,
Bindy Pendleton
Board President
2
TOTAL LIABILITIES &
EQUITY
board of directors
committees
Annual Meeting
Bindy Pendleton, 338-4256
Board Development
[email protected]
Building and Grounds
[email protected]
Bylaws
Debbi Lasky, 589-4546;
Kip Penney, 722-3112
Elections and Nominations
[email protected]
Finance
[email protected]
$1,549,661 $1,366,996
Long-Range Planning
[email protected]
revenue & expenses
2013
%
2012
%
$7,061,831
$4,538,009
gross profit $2,292,218
labor costs
$1,888,853
general & administrative expenses
$540,351
total labor & general $2,429,204
administration costs
NET PROFIT FROM OPERATIONS $94,618
100.00
64.26
35.74
26.75
7.65
34.40
$6,541,436
$4,249,218
$2,292,218
$1,710,585
$490,054
$2,200,639
100.00
64.96
35.04
26.15
7.49
33.64
1.34
$91,579
1.40
other income (expense)
2013
%
2012
%
membership fees
interest income
dividend income
miscellaneous income
interest expense
gain (loss) on disposal of assets
patronage dividends
total other income (expense)
NET PROFIT
BEFORE INCOME TAXES
income taxes
NET PROFIT
AFTER INCOME TAXES
$32,050
$62
$11,484
$6,770
($19,009)
($2,418)
($54,954)
($26.015)
$68,603
0.45
0.00
0.16
0.10
(0.27)
(0.03)
(0.78)
(0.37)
.97
$29,430
$129
$102
$3,205
($26,899)
0.00
($24,716)
($18,749)
$72,830
0.45
0.00
0.00
0.05
(0.41)
0.00
(0.38)
(0.29)
1.11
$13,119
$55,484
0.19
0.79
$8,501
$64,329
0.13
0.98
net sales
cost of sales
Management Oversight
[email protected]
Membership
[email protected]
Public Interaction
Kip Penney, 722-3112
Purchasing Policy
[email protected]
7
finance
committee
On September 30, 2013 the Belfast Co-op closed its fiscal year on a good note.The sales at the Co-op increased by $520,395,
or 8%, to $7,061,831. The Gross Profit of the store increased by $231,604 to $2,523,822. The Gross Profit margin for the store
increased to 35.74% from 35.04%.After subtracting the costs for Labor expense, General expenses, Administrative expenses, Interest
expenses, Tax expenses, and Patronage Dividend expense, the Co-op ended the year with a net income of $55,484. The balance
sheet of the store has also improved since last year.The assets of the Co-op have increased by $185,325.The largest increase in assets
was in cash, as it has more than doubled from $149,754 to $308,683. The Liabilities of the Co-op have increased by $88,305 and the
Total Equity has increased by $94,360.The total patronage dividend available to be paid to membership was $60,876. In January, the
Board of Directors voted to retain 70% of the available dividend and pay out 30%, or $18,262, to the member-owners of the Co-op.
This will be paid by June of this year. On December 31, 2013 the Co-op closed the first quarter of fiscal year 2014. The sales for the
store have increased by 9.04% to $1,796,191.This is below budget by $17,899.The Labor Expense for the first quarter was $474,515.
This is below our budgeted figure by ($28,859) and below last year’s first quarter results by ($1,184). The Total for all Labor and
Expenses is $1,713,254.This is below budget by ($56,353). The Net Income figure for the first quarter is $38,707.This figure is ahead
of budget by $40,047. The net income last year for the first quarter was a loss of ($8,803). We will reinvest in the store this year
by installing new coolers in our Produce department, and one in the Dairy/Refrigerated department. We hope to have this project
completed before the first day of spring. We are encouraged by our progress so far this year.
current assets
2013
2012
current liabilities
2013
2012
cash
accounts receivables
employee receivables
other receivables
merchandise inventory
prepaid insurances
other prepaids
prepaid income taxes
total current assets
$308,683
$79,7171
$2,991
$2,433
$352,600
$24,233
$3,941
$6,081
$780,679
$149,754
$76,731
$2,171
$2,259
$337,876
$19,033
$3,702
$3.828
$595,354
accounts payable
sales tax payable
accrued wages
employee bonus
earned time off
patronage dividends
other accrued liabilities
lease payable - current
notes payable - current
total current liabilities
$223,674
$13,504
$34,132
$8,800
$38,211
$18,263
$23,212
$0.00
$11,638
$371,434
$202,276
$12,219
$28,019
$8,575
$36,837
$7,306
$23,520
$1,860
$26,875
$347,487
$105,936
$843,856
$392,823
$3,741
$1,346,356
($605,884)
$105,936
$840,421
$381,500
$3,741
$1,331,598
($564,993)
long term liabilities
2013
2012
$0.00
$374,690
($11,638)
$363,052
$3,984
$351,428
($28,735)
$326,677
$740,472
$766,605
$28,510
$5,037
lease payable
notes payable
less current portion
long term lease &
notes payable
member equity payable
member investments payable
total long term liabilities
TOTAL LIABILITIES
$299,063
$48,776
$710,891
$1,082,325
$274,193
$45,663
$646,533
$994,020
total other assets $28,510
$5,037
property & equipment
land
buildings & improvements
equipment & fixtures
loan organization fees
total property & equipment
accumulated depreciation &
amortization
net property & equipment
other assets
equity investments
TOTAL ASSETS
$1,549,661 $1,366,996
There’s something special about the place where we live. Yes,
we have the beautiful coastline, pristine hills, amazing rivers, and
In an effort to supply you with local vegetables year round, the
fantastic hiking trails. As special as all of these things are, they do not
Co-op partnered with Coastal Farms food processing facility to
compare with the magnificent people we surround ourselves with in
create a Belfast Co-op line of frozen vegetables. We decided to
our daily lives. For many of us, those people are part of our Co-op
start small and test the market, so we purchased two products
community. And it is this community that makes our Co-op special. from local, organic farms. Organic spinach from Peacemeal Farm
As we look back on 2013, it is with both a sense of great
in Dixmont, and organic broccoli from Village Farm in Freedom. accomplishment and a heavy heart. The store performed to
The product was then processed into 10 oz. bags and is currently
expectation on most accounts, and we ended the year strongly
being sold in the Frozen Department. We will plan to increase the
profitable. Unfortunately, we also dealt with the passing of two
variety in the coming growing season.
longtime employees just a few months apart. We thank the Co
We continue to work to increase our outreach in the
op community for coming together to support us in this time of
community, and we have done that in a number of ways. Last
grief, and for the many wonderful thoughts and prayers that came
year saw more producer tours, increased talks and lectures, film
our way. We feel truly blessed to be a part of this great co-op.
screenings, native plant sale, cooking classes, and much more.
Spring is a time of renewal and reflection, and we took
In August, we gave our annual Customer Appreciation Day
the opportunity to examine how we could expand the Co-op’s
a slight name change and a new location. We moved the event
“brand”. One of the results of this effort was The Grill at City
onto High Street in front of the store, allowing us more space
Park. Partnering with the City, we served Co-op favorites and
for vendors and tents. Community Appreciation Day, as it is now
scooped ice cream from Stone Fox Creamery to many new faces
named, is our way of saying thank you to the Co-op community. in the community. The results were favorable despite a number of
This year’s event is slated for August 16th, 2014. Don’t miss it! poor weather days. We are planning to do it again this summer. As we work to reduce the Co-op’s debt load, one of our
Another program that was created in the spring is
goals has been to repay member loans, some of which date back
our “Round Up for Community” program. It basically works
to when the Co-op moved to its current location. We were able
incrementally through the point of sale, and customers are able to
to secure a low interest loan from the Sheepscot Wellspring Land
“round up” to the nearest dollar or amount of their choice. The
Alliance (SWLA), and are happy to report that we have paid off
money is then collected and distributed to two different charitable
nearly half of the outstanding loans, with more on the way.
organizations each month. Since the program began in March 2013,
This is just a snapshot of our fiscal year 2013 highlight reel. YOU have donated $10,650 to local nonprofit organizations. Currently we are outpacing budget expectations and are gearing
We are deeply grateful to our member-owners and customers
up for another busy summer. New initiatives continue to expand
for your generosity.
the Co-op’s potential, including the recent launch of our CORE
program (Cooperative Ownership Reaching Everyone), our low
income discount program.
We would like to extend a huge thank you to our amazing
staff who work hard everyday to provide the goods and services
you have come to expect. And thanks to you, our member-owners,
for continuing to support and believe in the mission of this Co-op
for now and many years to come.
respectfully submitted,
Chris Grigsby• Joe Jordan• Mylisa Vowles
© JPeskoe
6
report
General Management Team
3
purchasing policy
committee
The Purchasing Policy Committee reconvened in May 2013 to begin the process of updating the Co-op’s ten-year-old
Purchasing Policy and have been meeting every two weeks since that time.
A survey was developed and during August and September, 436 member-owners responded online and on paper, 13% of total
membership. And respond they did, not only answering a dozen multiple-choice questions, but adding 1,562 comments. Forty-two
members expressed an interest in helping the Purchasing Policy Committee in the future. Over 90% of respondents indicated that they
had strong aversions to high-fructose corn syrup and excessive packaging. Over 80% avoid artificial color and flavor, hydrogenated oils,
and MSG. Almost 80% “have concerns about farm-raised fish.” There are also many factors appreciated by over 80% of respondents,
such as: - local, organic, non-GMO and fair trade - available in bulk or BPA-free, recyclable, or reusable packaging - organic, non-GMO,
and grass fed meat Country of origin made a difference to 75% and multinational corporate ownership was a turn-off for 60%. Asked
if the Co-op should carry tobacco, 62% said no and only 11% yes. As a membership-owned and controlled organization which runs a
retail store focused on health-promoting products, it should be no surprise that our member-owners have strong opinions about what
we stock. The raw survey data is available online at www.s.coop/surveyresults and a Survey Report is being produced. Thank you to all
who participated
After soliciting and incorporating feedback on a draft of the Policy from member-owners, relevant staff and the Board, the
Committee will submit the revised Policy to the Board for approval sometime after the Annual Meeting. The Committee will then
support implementation and continued development of the Purchasing Policy after its approval.
The Committee worked with trained facilitator, Linda Cote-Small, who has a rich history with food co-ops, to create working
agreements for our Committee and provide structure to our meetings. She facilitated several meetings as a volunteer, modeling effective facilitation, and we’re considering securing her services in the future.
Several Committee members met with a Good Tern Co-op working member-owner, who also serves on their Board, who’s
researching GMOs in their products. We’ll be collaborating in our efforts.
Under the direction of the Facility and Maintenance Department and with the dedicated cooperation of the staff along with
member-owner Abby Williams, the Co-op’s recycling program continues to keep an impressive amount of material out of the waste stream.
Our recycling efforts have paid off in not requiring any additional dumpsters or dumpster pick-ups.
• We continue our five year arrangement with the Belfast Hannaford store by annually bringing close to 2000 pounds of plastic bags and film to add to their corporate plastic recycling program.
• All glass (approx.1300 lbs), metal cans and caps, (approx. 1900 lbs.), and #1–7 plastic (approx. 850 lbs.), is relegated to the Belfast Transfer Station, as well as some higher grade paper if we have storage and transport space.
• We contract with Cassela Zero Sort recycling. We utilize a large dumpster for paper and box board, large brown paper bags, other brown paper and bags, large bags of receipts, produce packing material, and other odds or ends on a bi-weekly basis.
• Many of our cardboard boxes are reused by our customers – the remainder of our corrugated material is recycled by Pine Tree Recycling. Virtually all banana boxes are reused in-store as recyclable & redeemable containers, turkey transport boxes during the Thanksgiving holiday, and for customer use. Waxed card board produce boxes are regularly picked up by vegetable growers and all mesh onion bags are also set aside for reuse.
• All our Deli (coffee grounds!), Cafe, and Produce organic waste is picked up or taken away for compost and animal food. Fruit in particular is picked up for the birds of Avian Haven.
• We bag for reuse all our packing material, styrofoam peanuts, and packing papers. This material is available to the public and always in demand. Though we do reuse some sheets of styrofoam, the material is not able to be recycled.
• We recycle all our metal waste and rigid plastic. Any small wood waste goes to staff as kindling material and our e-waste
is recycled annually.
4
long range planning
committee
The Long Term Planning Committee now has a core of committed members,whose mission is to provide the Board of Directors
with information and recommendations that can help the Board with its strategic planning and decision making processes.The committee
supports the Co-op’s investigation and implementation of the triple bottom line business model (http://en.wikipedia.org/wiki/Triple_bottom_
line) and will take that into account as it does its research and makes recommendations to the Board.The Committee will pursue its mission
by networking with other community and governmental organizations, by being pro-active and goal-oriented as it considers the future of the
Co-op and the Greater Belfast community faces over the next 5 to 10 years.The Committee will resist the temptation to focus on present
challenges, or on issues best addressed by other Co-op committees. Our focus will be on the exciting, yet uncertain, future of the Co-op.
In keeping with our mission, and with support from the Co-op Board, Committee members met with an experienced consultant regarding the benefits of establishing a non-profit organization, related to, but separate from the Co-op. This
NPO, in part because of its non-profit status, has the potential to add a whole new dimension to the future of our Co-op and the
co-op movement in our region. As a result of that meeting, the committee decided to form a developmental working group.
The working group will help create a NPO board, and will support that Board as it refines its mission, and pursues legal standing.
nomination & election
committee
The Nomination & Elections Committee is a sub-committee of the Board Development Committee. We come together in
December and work through the Annual Meeting in March implementing, organizing, and coordinating all the details of the board
candidate nomination and election process.
The Nomination & Elections Committee recruits candidates, sets up the election, works to get the vote out and then
conducts the final verification and counting process.Voting started February 17 and continues through to our Annual Meeting, Sunday,
March 23.
Finding, recruiting, and nominating good director candidates for the Co-op Board is a year-round endeavor that requires the
cooperation of the full board. Please let us know if you or someone you know might be interested in being a board candidate in 2015.
Joining a committee is a great way for member-owners to get involved & get a glimpse of what it might be like to be a director.
You can also participate by helping with special events including working to get the vote out.
The 2014 election is quite different from what we have become used to. This year we have a contested election - we have 9
candidates for 5 open BOD seats – so please exercise your member-owner right and take responsibility for your role in the elction
process. Co-ops work democratically and most efficiently when members take an active part in the voting process. Take the time
to become acquainted with the candidates, check the membership area and website for additional candidate information, and join us
March 23rd for our 2014 Annual Meeting when the final votes will be collected.
membership
committee
The Belfast Co-op’s Membership Committee consists of interested board members, staff members and co-op members,
working together to create a more positive experience for our member-owners, to attract new members, and to encourage existing members to better understand the importance of their membership and the role they can play in supporting our co-op.
In the past we have talked about creating a more useful membership area in the store. We are hoping to make that happen, now that the bread section of the store has been re-organized. Some people on the committee recently visited co-ops in
New Hampshire and Vermont and have brought back some new ideas about how that area might look and function.
This past year, the Membership Committee began offering a store tour for any interested members. Our aim was to
target new members, but the tour is open to all. We offer an aisle by aisle walk through of the store to help acquaint people with
product layout of products, and an opportunity to meet some of the staff. The tourtakes place on the 3rd Saturday of the month
at 10:00 AM.
For a long time, our meetings have been held during the morning on the 1st Tuesday. In an effort to better accommodate
current committee member’s needs, we are now meeting on the 1st Wednesday of the month, at 2:30. We encourage anyone
interested in helping enhance the co-op’s membership experience to join us. Come sit in on a meeting to see what we’re up to.
5