eacoop 2010 annual report

2010 annual report

bringing a member-owned

grocery featuring fresh, local

seasonal food to the

southtowns

9 Letter from our Board PresidentDear Cooperators,

In October, 2009, I began talking with three other motivated East Aurorans about an idea. At the time it was a “what if, pie-in-the-sky” conversation that only scratched the surface of next steps and commitment levels. Though we all went our separate ways after that conversation, none of us could stop thinking about our idea: opening a co-op that would serve East Aurora and all Southtowns communities.

Our excitement was infinite and propelled us toward the information and resources that we needed to solidify into what is now known as the East Aurora Cooperative Market, run by an eight-member board of directors and an additional cohort of key advisors.

In true co-op fashion, ours is a grassroots effort and one that we, who are most closely tied to its’ development, believe will have positive and lasting effects on the broader community. As stated in our mission, we will bring a food cooperative market to East Aurora that will meet the nutritional needs of our community and the sur-rounding area. To this end we believe that “a rising tide lifts all boats.” Our cooperative seeks to increase the potential of our local farmers and producers by carrying as many locally produced products as possible. We are confident that this will have a ripple effect that will translate into the improved health of our community, both nutritionally and economically.

Since the beginning, our growth has been nothing short of remarkable – and it is all thanks to our member-owners. As of press time in April, we have just hit the 500 mark only 10 months into our membership campaign which makes it clear that the community recognizes the value of our mission. Many have jumped on board to be a part of it, and countless others have enthusiastically volunteered their expertise to the movement.

We are also grateful for the Lexington Cooperative Market in Buffalo, whose generosity supported the completion of our professional market study. Among other things, the study confirms that we can successfully sustain a sizable cooperative market here in East Aurora. The board believes that this news, combined with the strong support from our community and most specifically, our member-owners, is a recipe for success.

On behalf of the East Aurora Cooperative market, I would like to express the utmost gratitude for your confidence in us and this project. We are often overwhelmed by the warmth and encouragement we receive from our member-owners for pursuing this project. So you see, this cooperative effort is synergistic, and together we are the rising tide.

Yours in cooperation,Sheila Conboy

Our MissionTo cultivate a sustainable food coop-erative that is built by and for the East Aurora community and vicinity through the maximal efficient use of our local resources. Meeting the nutritional needs of our members and customers is our highest priority and will be realized through access to natural, local, sustainable goods, a democratic governing process, and a focus on continuing community education and outreach that promotes a healthy, forward-thinking way of life.

Our VisionThe East Aurora Cooperative Market comprises forward-thinking individuals who believe in and endorse the value of the local food movement. The market strives to be a dynamic community center where our member-owners and customers may obtain a variety of delicious, healthful products that promote a high quality of life and contribute to a thriving local economy. Through democratic governance and community cooperation, the market will be guided by member-owners who believe in education and community outreach.

Our ValuesThe East Aurora Cooperative Market:

9 Recognizes the connection between a thriving local economy and the food cooperative movement

9 Acknowledges the impact of the health of individuals on that of the community

9 Will include both organic and traditional options, to reflect the choices of its members

9 Will be governed by a democratic decision-making process

9 Values inclusivity by embracing both member-owners as well as all members of the community, individuals and families alike

9 Believes in access to a high-quality variety of food that can be traced to producers both local and national with similar high standards

9 Will strive for fair prices that reflect the quality of the food available

One of our first meetings at Taste January 2010. Jane Brewer, Sheila Conboy, Lissa Mann, Mary Aiken and Deb Radziwon

2

9 The CommitteesBusiness & Finance - We have come a long way since asking our founding members to each donate $40 to cover our initial start-up costs! Now, less than a year later, due to the tremendous response to member-ownership and other revenue- generating activities throughout 2010, as well as being fiscally conservative, we have a healthy operating budget and have been able to finance the entire first year’s operation while keeping member equity entirely intact.

The Finance Committee is composed of credentialed, experienced and dedicated volunteers, including two college professors, a CEO and a CFO. With their guidance, we have implemented financial controls and reporting mechanisms, drafted a preliminary business plan, developed pro forma financial statements based on models provided by Food Co-op Initiative and Cooperative Development Services, drafted grant proposals and explored funding opportunities through various state and federal agencies.

2011 will be a busy and exciting time for our Finance Committee as we interpret and evaluate the results of the market feasibility study, determine the economic viability of potential sites, refine the business plan and secure financing.

Membership, Marketing & PR - Working diligently since the beginning, the goals of this committee are twofold, yet work hand-in-hand: engage and recruit member-owners and educate the public about the benefits of a member-owned grocery store. To that end, much research was conducted during an initial “learning curve” period, so that we could understand the legal, business and marketing concepts related to the cooperative business model. The end-user deliverables were numerous, and include co-op bylaws (in conjunction with the Business & Finance Committee), and writing, designing and producing numerous print and electronic pieces to meet our

goals. In June 2010 we launched our first Membership Drive and by the end of the year, six months from launch, we had welcomed 353 new member-owners. This committee also put that research to use and launched the co-op website in October 2010, and began regular email campaigns to both our membership and anyone interested in the co-op in general.

Education & Events - In alignment with Cooperative Principle number five, “Education, Training and Information,” this committee is dedicated to locating speakers and presenters in the areas of food, health and nutrition. Beginning with the Food for Thought series of classes on preparing food healthfully to the kickoff of the Health & Longevity Lecture series whose topics will continue to include all aspects of health and nutrition, the activities of this committee impart the benefits - personally, environmen-tally and economically - of eating well.

Site Selection - If you’ve encountered cars driving very slowly and pulling over often to take photos throughout the village and in the surrounding communities, then you may have seen the Site Selection Committee at work! This committee, with guidance from Tom Hagner, a real estate and development expert, is tasked with finding the perfect location for the co-op. Criteria for the perfect site include: visibility, accessibility, parking, and that it would be a warm and welcoming environment. Until that location is found, however, we have made a temporary home on Main Street in East Aurora (next to Subway). We are delighted to have this location not only because it is a meeting space for the board, but because it also enables us to introduce ourselves to our current and potential member-owners, and to sell locally produced goods during our Mini Markets.

3

Member-ownership is the fundamental tenet of any co-op. The radish is used to symbolize

our membership growth because of its characteristics:

hardy and quick-growing, much like that of our co-op.

“Never doubt that a small group of

thoughtful, committed citizens

can change the world. Indeed, it is the only thing that ever has.

— Margaret Mead

u.s. anthropologist

& popularizer of

anthropology

(1901 - 1978)

9 Inspiration

Mary Aiken*, Vice-president, Membership & Marketing chair. Mary is a graphic designer, having practiced since 1987 in a variety of capacities from advertising agencies, to college texbook publishers, consumer products companies and finally her own freelance graphic design business, AikenDesign. Mary’s expertise has been integral to creating the co-op’s brand, from its Roycroft- inspired logo to the membership materials, advertisements, website and email campaigns. She has a long-standing passion for food, as well, and is thrilled to be involved in this community-strengthening endeavor.

Jane Brewer*, Education Committee Co-chair. Jane is a prosthodontist and Clinical Associate Professor at UB’s School of Restorative Dentistry. Jane frequently travels to Guatemala and other countries to help those who don’t have access to proper dental care. Jane is active in her church, has a long-standing belief that healthy, sustainably raised food benefits health, the environment and the economy. She has a strong desire to inspire the youth of our community to embrace the local food/co-op movement. Jane, along with Education Committee Co-chair Terry O’Brien, established the Health & Longevity Lecture Series.

Barbara A. Byers, APR, Public Relations chair. Barb has a degree in communications from Penn State and is an accredited member of the Public Relations Society of America. She serves as associate director for communications in the University at Buffalo Office of Alumni Relations. As she does in her position at UB, Barb directs all print, electronic and web-based communication and social networking for the co-op. Barb is excited about creating and supporting a thriving local business environment.

Kathleen Caputi, Treasurer, Business & Finance Committee Chair. Kathy holds a bachelor’s degree in business administration from Canisius College. Previously she worked in health care systems management, and served on the boards of both the local and state medical equipment dealers. She is very passionate about bringing nutritionally dense and healthy foods to East Aurora and is thrilled to be on board with the East Aurora Cooperative Market.

Sheila Conboy*, President, East Aurora Cooperative Market founder. A Kenmore native, Sheila is a nurse practitioner and for-mer naval officer who lived on the West Coast for 10 years before returning to Western New York with her husband and oldest daugh-ter twelve years ago. Her family grew by two more daughters, as did

Sheila’s passion for food and her belief in its impact on health. Her desire is to share her passion with the East Aurora community in the form of the cooperative market.

Lissa Mann, Membership Coordinator. Lissa has a degree in retail management/merchandising. Her background includes retail buying, store management, and regional sales office support. She has a degree in medical transcription and works as an independent medical transcriptionist. She is the senior trustee of her church and a member of the church council. Lissa’s passion for this project is very simple, “because good food is important!”

Terence O’Brien, Education Committee Co-chair. Terry has a degree in economics and has worked most of his career as an entrepreneur. His specialty is in organic farming and agriculture, which he employs in his work as a landscape/estate gardener. A longtime vegetarian, Terry is committed to educating people about the direct impact food has on health. He was respon-sible for securing the first presenter in the Health & Longevity Lecture Series last November, T. Colin Campbell, PhD.

Debra Radziwon*, Events Chair. Deb is a nationally certified school psychologist in the Orchard Park Central School District and also chair of the Committee of Special Education. As Events Chair she is responsible for initiating the Food for Thought series and the Health and Wellness Fair held in October 2010. Concerned with a healthy lifestyle, Deb is a prolific canner and freezer when “real” food is in season. In her spare time, she cooks for a local caterer in East Aurora.

9 Meet the Board of DirectorsThe Founding Board of Directors was established in May of 2010. It currently consists of eight directors, meets once a month, and is ultimately responsible for ensuring a healthy successful business throughout the startup process and beyond. The Board oversees the committees and maintains open communication with the membership. Plans are in the works for our first board elections.

Back row left to right, Steering committee member Jill Chiacchia, Board Members Terry O’Brien, Jane Brewer, Lissa Mann and Sheila Conboy and Barb Byers. | Front row left to right: Deb Radziwon, Mary Aiken, Kathy Caputi.

4*Denotes Founding Member

9 2010 Annual Statement cash inflow Member-owner equity $52,830 Fund Raising / Donations / Other 9,629 Member-owner loans 0 Grants 0

Total Cash Received $62,459 cash outflow Events / Marketing / Advertising $2,662 Insurance 1,776 General Admin / Legal 1,153 Charitable Contributions 400 Web services 396 Rent / Utilities 308 Total Expenses 6,695 Net Cash Flow $55,764 Member-Owners 353 cash on hand (m&t bank) $55,764

The cash on hand reflects the strong response from the community in the

form of member-ownership. It also reflects the dedication of the founding

board of directors in sharing their collective expertise and professional skills,

in addition to many other key people who have donated their professional

services. Board members have also personally donated much of the cost of

getting the business started.

In less than one year, and thanks to so many people and factors, we have

created a foundation that has put us on the path to success: we have

established four energetic committees, an ever-growing volunteer base, a

temporary office space, a Facebook following and email list of more than

1,000 people…and 353 member-owners!

5

Cooperative PrinciplesCOOPERATIVES AROUND THE WORLD

GENERALLY OPERATE ACCORDING TO

THE SAME CORE PRINCIPLES AND VALUES,

ADOPTED BY THE INTERNATIONAL

COOPERATIVE ALLIANCE IN 1995.

1. Voluntary and Open Membership Cooperatives are voluntary organizations, open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

2. Democratic Member Control Cooperatives are democratic organiza-tions controlled by their members—those who buy the goods or use the services of the cooperative—who actively participate in setting policies and making decisions.

3. Members’ Economic Participation Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the business they conduct with the cooperative rather than on the capital invested.

4. Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their mem-bers. If the co-op enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the members and maintains the cooperative’s autonomy.

5. Education, Training and InformationCooperatives provide education and training for members, elected representa-tives, managers and employees so they can contribute effectively to the develop-ment of their cooperative. Members also inform the general public about the nature and benefits of cooperatives.

6. Cooperation among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.

7. Concern for Community While focusing on member needs, cooperatives work for the sustainable development of communities through policies and programs accepted by the members.

9 Our Roadmap:T H E R E A R E M A N Y M O D E L S

TO F O L L O W W H E N

O P E N I N G A C O O P E R AT I V E

M A R K E T. W E H AV E

C H O S E N TO F O L L O W A

D E V E L O P M E N T M O D E L

C A L L E D “ F O U R C O R N E R -

S TO N E S I N T H R E E S TAG E S .”

9 4 Cornerstones:1. Vision - One of the first things

we did as a board was to establish our

mission, vision and values statements,

which help anchor us to our core beliefs.

2. Talent - Our talent pool

encompasses professionals in the areas

of law, public relations, business, graphic

design, accounting, technology and

health and wellness.

3. Capital - In addition to the

initial funds donated by the board and

steering committee, our capital has

been obtained from our memberships,

donations and events.

4. Systems - We established a

“cloud,” or virtual office for board

and steering committee members;

began compiling databases to track

member-owners, volunteers and

potential vendors; established governing

bylaws and pro forma and financials

and an operating budget; established

communication vehicles and visibility

via Facebook, email, a mailing database,

website and office space.

9 2010 Accomplishmentsoctober 20099• The original group of four, Sheila Conboy, along with Mary Aiken,

Deb Radziwon and Jane Brewer met to discuss the idea of starting a co-op in East Aurora

november 2009 - january 2010 9 Board, steering committee and volunteer recruitment

february 20109 Launched the co-op

to the East Aurora community through a special event, the presentation of the film Food, Inc. A panel discussion followed to gauge community

interest 9 Participated in the

Waldorf Winter Fair and the Roycroft’s Local Yokels dinner

9 Incorporated under New York State law as a for-profit general cooperative named East Aurora Cooperative Market, Inc.

march & april 2010 9 Committees began researching and organizing, determining our

business structure, preliminary timeline, membership materials

may 2010

9 Approved bylaws9 Established Founding Board of Directors9 Began weekly presence at Orchard Park Farmer’s Market

june 20109 First Membership Drive began!9 Held the first of an ongoing series of Volunteer Orientations9 Participated in the Roycroft Festival

6

Peppermint Farms was a popular spot at the Health & Wellness Fair, October 2010

Roycroft Festival June 2010 - we began welcoming our first member-owners at this event

july 20109 Established our presence at East Aurora Farmer’s Market and

participated in the East Aurora Sidewalk Sale

august & september 20109 Continued participation in community events like the Storybook

Window Walk, Knox Farm Fiber Festival

october 2010

9 Held our first Health & Wellness Fair in conjunction with Body & Soul Boot Camp. A portion of the proceeds earned that day were donated to the Juvenile Diabetes Research Foundation

9 Began Food for Thought series of classes in conjunction with the Town of Aurora Recreation Department

9 Launched our website!

november 20109 Health & Longevity

Lecture Series with a presentation by T. Colin Campbell, Ph D., professor emeritus at Cornell University

december 20109 Secured a temporary

office space on Main Street and held a well-attended Member-owner Open House

2011 and beyond:9 The Four Cornerstones in Three Stages model will continue to

guide us throughout our journey to open a cooperative market, and will enable us to benchmark our success. Each new milestone gives us renewed enthusiasm and inspiration, and we look forward to sharing the journey with you!

9 Three Stages:Stage 1 Organizational Phasestatus = complete9 Incorporated, established board

of directors, approved bylaws and

membership documents

9 Identified developmental project

manager and formed committees

9 Reached 300 member-owner

threshold

Stage 2 Planning & Feasibility status = in 2a9 Completed financial pro formas

9 Need to complete professional

market feasibility study

9 Need to reach 500 member-owner

threshold

2b planning9 Hire facilities project manager,

plan member loan campaign,

complete business plan

9 Reach 600 member-owner

threshold

Stage 3 - Implementation 3a preconstruction9 Hire general manager, launch

member loan campaign, collect

all loans

9 Reach 800 member-owner

threshold

3b construction/renovation9 Construction begins

3c preparation for opening9 Reach 1,000+ member-owner

threshold

9 Open the doors!

7

Farmers markets,

festivals, meetings with

local officials, classes,

meetings, emails, member-

ships, monthly features

about the co-op’s progress

in The Southtowns Sentinel,

webinars, seminars, research,

communication, meetings...

growing strong!

Deb Radziwon chats co-op at our Member-owner Open House, December 2010

E A S T A U R O R A

9

s t ay c o n n e c t e d :

m e m b e r s h i p o f f i c e :

6 1 8 m a i n s t r e e t

e a s t a u r o r a

t h u r s days 4 : 3 0 - 7 : 3 0 p. m .

s at u r days 1 0 a . m . - 1 p. m .

m a i l i n g a d d r e s s :

1 74 m a i n s t r e e t # 2 3 7

e a s t a u r o r a n y 1 4 0 5 2

w e b s i t e :

e a c o o p. c o m

e m a i l :

i n f o @ e a c o o p. c o m

9

Our sincere thanks

to all of our

Seed Member-owners

and our volunteers

for making it

such a successful year.

We are indeed

stronger together.

The Health & Wellness Fair was the result of a real team effort.