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Welcome to the 2010 Annual Report for Valley Natural Foods
Our mission is a healthy community. Our Values are FRESH (Family, Relationships, Education, Sustainability, Health). General Manager's Report President's Report Treasurer's Report Donation Committee Report Green Report Candidates Valley Natural Foods Co-op Community Fund General Manager's Report 2010
By Susan McGaughey, general manager
Thirty-three years ago our co-op was created by our members to serve our community. This gives us a different perspective than businesses owned by distant and uninvolved investors. As a unique economic institution Valley Natural Foods is owned and supported by you who live and work in the community we serve. We are thankful for the successes your support has made possible this past fiscal year. It is exciting to be involved with a co-op that is growing and experiencing tangible results of our vision, values and passion. Some of the highlights from this past year include:
Through the support of our members, the board's effective leadership and the staff's dedicated work, Valley Natural Foods is able to grow our charitable giving and educational support for community while serving you with exceptional, authentic products and exceeding financial goals. You can read more about our community outreach in this year's Donation Committee Report and learn about our operational efficiencies in our first annual Green Report.. Our long history of contributing to our community is seen in donations, sponsorships, grants and outreach events. To ensure the long-term viability and growth of this tradition of giving, we have established and are building the Valley Natural Foods Cooperative Community Fund. The fund embodies three of the basic cooperative principles: concern for community, cooperation among co-ops, and member economic participation. Members have helped grow the endowment to $38,438. You have an opportunity to actively participate in our community support through a tax deductible donation of your Patronage refund to the Co-op Community Fund. Through Member growth and purchases Patronage rebates are $555,233. Twenty percent (or $115,224) will be paid out in cash. Your cash refund will come in the form of a voucher and will be available at the Annual Membership Meeting or in the co-op after Oct. 18. You may use your voucher in one of three ways:
Your staff is grateful for the opportunity to be involved in such rewarding work and looks forward to serving you with enthusiasm and pride. President's Report 2010
By Bill Dumler, board president
Thanks to all members and staff for another wonderful year. We are blessed with a strong membership and a wonderful staff. Last year, the board was again surprised by our award winning staff with recognitions they received and new projects they developed. Few highlights include the launching of a new wholesale Floral department and our Garden Classroom which is rapidly growing along the south side of the building. Look for more to come. We continue to see strong results from our expansion. Many departments reported strong growth in sales with expanded product selection and exceptional service. Our membership continues to grow beyond our expectations, a testament to a job well done by our staff. This year's success resulted in the largest Patronage Refund ever paid to our members. This past year, the board focused on developing new Ends statements. Ends statements are goals defining what the organization shall accomplish and focus on in the next coming years. The statements, broad in nature, are the guidelines for our management team and staff. We will present and discuss our new Ends statements at the annual meeting on Oct 18th. The board goals for this year, 2010-2011, include.
We look forward to seeing everyone at the annual meeting on Oct 18th. If you can't make it to the meeting, please drop us a note via email or the comment box, or approach us if you see us in the store. At the meeting, we will be collecting your questions for the board. We will try to answer some of these at the meeting but will get to all of them throughout the year with answers to be posted in the newsletters. Thanks again to all for another joyous year. Treasurer's Report: Year Ended June 30, 2010
Highlights
By Richard Ellsworth, board treasurer While competition was struggling to report sales increases during the year, our co-op achieved a double digit increase over 2009 sales. The number of members at June 30, 2010 increased to 7,888, and our success for the year resulted from everyone’s support and commitment during the year. Our staff and management worked extremely hard to produce the results in the financial statements and are deserving of all our thanks. Good job! To access the full Treasurer's Report, Operating Statement and Balance Sheet, contact the board at board@valleynaturalfoods.com for the username and password. Donation Committee Report 2010
By Charli Mills, marketing communications manager
In response to goals set by our board of directors five years ago, the community outreach of Valley Natural Foods continues to grow. With increased support, charitable giving, community events and student activities, came increased requests. To consider the volume and variety of requests, our general manager appointed a staff donations committee. If I had to say I have a favorite task as marketing communications manager, it would be facilitating that committee. Not only do I get to give to our community, I get to witness first-hand the giving that flows into our program through our staff involvement. At our co-op we talk about supporting our mission with values. One of those values is "relationships." We employ numerous buyers who build relationships with the growers, producers, owners and manufacturer representatives. Through these relationships we are able to expand our giving by asking for support. Last year our buyers took such an enthusiastic attitude towards giving that we were able to increase our product donations from and average of $5,000 a year to $17,000. We also reconsidered how we advertise and placed more advertising dollars into community and school event sponsorships that served our marketing needs better than traditional ad venues. Between July 2009 and June 2010, here is our year in review:
Green Report 2010
How your co-op is stepping up efforts for a more sustainable world.By Nancy S. Grant "Living green" and "act sustainably" are familiar concepts at Valley Natural Foods. As a food co-operative, the focus here has always been on nutritious, wholesome items for you and your family. Featuring local seasonal products are smart, sustainable practices that every shopper can see. But there's a lot more "green" going on behind the scenes. Creating a new "green" recipe At Valley Natural Foods the hunt is on for more ways to take better care of the environment, and to develop procedures that fit this community and this co-op. This year is a turning point along the path to a more environmentally sensitive future while maintaining the co-op's focus on delicious, healthy food. Everybody knows the basic recipe for a PB&J sandwich: spread some peanut butter on one slice of bread, add jelly, top with a second slice of bread, and enjoy. There are plenty of individual variations -use chunky peanut butter instead of smooth, use fruit preserves instead of jelly, use a flour tortilla instead of sliced bread. The basic recipe for a greener co-op is pretty simple, too. Reduce, recycle and reuse at every opportunity, focus on local products and services, think about how actions affect the natural world near and far. However, operating a food cooperative presents special challenges that require a customized approach to the broad "green" recipe. Each effort must take into account the need for the safe preparation, storage and display of all items sold in the store. To keep the cooperative running on a solid financial basis, the up-front costs of any new action must also be carefully compared to the long-term benefits. During the past several months managers have been striving to get as many people in as many departments as possible involved in finding the right ingredients and trying new approaches to every activity. Each change must make practical sense. In this "First Green Report," you will see the progress made so far -and hear about new goals for the future. Broad goals, many details Taking a few minutes to chat during a busy afternoon at the store, General Manager Susan McGaughey says, "Part of our co-op's mission statement is encouraging a healthy community. Our values are FRESH - that stands for Family, Relationships, Education, Sustainability and Health." Your co-op's board of directors recently updated the co-op's ENDS statements that focus on this FRESH approach as a guide to daily operations. This governance policy sets out the reasons the co-op exists, and establishes broad goals. Two key concepts included in the FRESH acronym are
McGaughey says, "It's a balancing act. Part of it is listening to our members and what their needs are, and part is knowing what food industry standards are. We're looking at healthy choices to maintain a healthy bottom line for our members, and trying to support a healthy environment." Using energy wisely Finding ways to reduce electricity consumption is an old habit here. During the store expansion in 2008, exterior neon signs were replaced with more energy efficient LED signs. Year-round, the automatic dual airlock doors at the customer entrance keep cool air-conditioned air in and warm outdoor air out during the summer months, then keep warm heated air in and cold outdoor air out during the winter months. This simple idea is a big step toward saving energy used by the HVAC system. Another simple idea also reduces energy use year-round. The fronts of coolers that are open for customer access during retail hours are covered overnight with pull-down shades that keep chilled air in place until the next day. Kathleen Boegemann, operations manager, spends a lot of time maintaining building equipment, lighting and store fixtures year round. Energy efficiency is an ongoing, ingrained practice for Boegemann. "We perform normal quarterly maintenance on the roof-top compressors," Boegemann says, "because it's energy wise to help keep them running properly. Then when the little fluffy seeds from the cottonwoods are drifting around, I make extra trips up to the roof to clear them away." Keeping the area around the compressors free of debris helps they run more efficiently. Boegemann has many other regular store maintenance duties. The food coolers are cleaned every month, while other chores have a longer repeat cycle. "An old, almost worn-out light bulb doesn't operate as efficiently as a new one and uses more energy. We re-bulb the entire store every five years." This year, federal grant money being channeled through local governments to help encourage lower energy use and improve energy efficiency is boosting Valley Natural Food's progress toward even more sustainable operations. McGaughey and Boegemann have been working closely with the City of Burnsville and the local rural electric cooperative, Dakota Electric Association, to use this grant money to purchase new items that will help to better manage the food co-op's energy needs. McGaughey says, "We are retrofitting our refrigeration units from old fluorescent lighting to LED lighting." This new lighting not only uses fewer kilowatts of electricity when operating, it also will reduce the heat load in the cooler cases. That means it will take less energy to keep food at the proper temperatures. This project has three measurable benefits. The new lighting will:
Orlando Haripal, fresh departments manager, explains some of the green ideas in use in the produce and meat departments. "Instead of dumping the trims from our meat department, we contract with an independent company to take it away and use it as the basis of other products such as fertilizer. We also save empty cardboard cartons and store them temporarily until another independent company picks them up for recycling." Commercial recycling of consumer items is not yet available in the store's neighborhood, so Sheila Hisdahl, a Valley Natural Foods cashier with a personal commitment to recycling, gathers up empty bottles and other items in the employee break room, takes them home, sorts them and adds them to her own recycling bins. That's one R-recycling-but what the other two Rs, reducing and reusing? Susie Hessberg, communications specialist, notes that the co-op's bulk food department offers a great opportunity to do both. "Using your own container over and over again is easy. You pre-weigh it, add only the quantity of products you want, and then print a small, simple sticker for the cashier to use. That's a very eco-friendly way to shop for staples." Reducing packaging and reusing existing containers helps cut down on waste. At the checkout lanes Hisdahl sees other examples of reducing waste when shoppers remember to bring along their own reusable tote bags. When co-op shoppers use their own bags that means the co-op can spend less money on plastic and paper bags. Pennies saved on checkout lane expenses lead to dollars saved during an entire year, reducing operating costs for all members. Trying new ingredients Keeping a keen, green eye on expenses plays a key role in many co-op decisions. Replacing the old water heaters with newer "on demand" water heaters should cut down on energy use and costs throughout the year. Replacing the paper towel dispensers in the restrooms with electric hand dryers should also reduce costs, while eliminating a lot of paper waste, too. But saving money isn't the only motivation. McGaughey says, "We have a responsibility to care for the environment. I like that we are doing this for our grandchildren -it's not just about today." The recipe for a more sustainable future includes many more ingredients. Look for signs in the store highlighting new green ideas. And be sure to watch for updates about your co-op's progress in the e-newsletter and in the print magazine This is Living Naturally. Nancy S. Grant is a member of the American Society of Journalists and Authors and the Cooperative Communicators Association. She's the author of The Pocket Idiot's Guide to Your Carbon Footprint. Candidates
Mark Mosiniak, Member #8396Diedre Jones, Member # 582 Brian Thompson, Member #8870 Alan Rupp, Member #91 1. Mark Mosiniak, Member #8396 
Why are you interested in serving on the VNF Board of Directors?I would be honored to serve as a member of the VNF Board of Directors because I have a passion for food and the enthusiasm and knowledge needed build long-term growth in a business. I believe in the importance of fostering community by getting to know one's neighbors, being informed about local issues and working collaboratively to create an atmosphere that helps us build a better future in which VNF is at the center of positive change. As a board member of VNF, I look forward to contributing to the VNF community by sharing my own experiences and passions, learning from fellow members and growing as a professional. How are you qualified to perform the duties required of the board? I have over 20 years of retail experience leading people, projects, programs and managing businesses in both field and corporate environments. My experience also includes participation leading a number of professional working groups as well as an elected member of the CEA Mobile Electronics Board of Directors. In my current role as the Director of Business Development for Best Buy Mobile, I'm responsible for identifying new business opportunities, leading the development of those opportunities, building the brand around Best Buy and implementing the change necessary to bring them to market. I believe my talents and unique experiences would compliment the existing members of the VNF Board of Directors. How would you handle difficult situations? The goal in identifying an answer to a tough question is to collaborate as a group while keeping our common goals, values and beliefs at the center of what we do. This creates something that is more than each involved could offer alone. However, under tough circumstances, time or physical constraints, collaboration may not be an effective tool. Moving on may be more important in these situations, so a compromise is likely in order. However, I believe the use of a compromise should be used only as a last resort. A compromise is a great tool for solving short term conflict with others, but it usually ends with dividing something, giving up this for that, or taking turns. The goal of collaboration is to add, not subtract. What opportunities/challenges do you see in the future for Valley Natural Foods? Organic products are one of the strongest growth areas in the grocery sector. However, much of this growth is coming from mass market retailers who are increasingly giving more shelf space to organics to capitalize on recent trends. History shows us that a common strategy of these retailers is to reduce prices in an effort to grow market share. While this is a successful approach to gain early wins in business, it is not always sustainable. A more successful approach will come from those who respond with strategies that go beyond cost cutting. One opportunity VNF can continue to build on is providing "food with a face". Consumers want to support their neighbors, their friends and their communities. When cash is tight, they will spend it with people they trust and know. Placing a stronger emphasis on where the food comes from and how it positively affects our community will be rewarding for VNF. 2. Diedre Jones, Member # 582 
Why are you interested in serving on Valley Natural Foods Board of Directors?My primary interest in initially running for the board was to assist in designing the new store. I have always been interested in and committed to a natural lifestyle and organic/healthful nutrition. After shopping in the store for a few years, I felt that it was natural to become a member and when I was approached to run for the board I was attracted to the values of both the organization and the people involved with it. Over the years I have felt that my greatest asset has been as a team builder, helping sort out the issues, guiding us in making decisions. How are you qualified to perform the duties required of the board?
I do not have a problem with stating my opinion, but I value listening to what others are thinking. I have worked with the members of the Board at Valley Natural Foods long enough to appreciate the different view points and different strengths. I appreciate understanding various view points and helping the group determine which is the logical one to follow on a specific item. What opportunities/challenges do you see for the future of Valley Natural Foods? Presently the Board has been working on Ends policies, coming to grips with what specifically is important to Valley Natural Foods, what is most important that the organization is providing to its members, what directions should be following. Especially in this tumultuous economic time, these are serious decisions. Providing Valley Natural Foods with a strong base, a dynamic strategic process and consistent organizational processes in place will help VNF continue to be successful. Meeting the needs of its members will ensure the future of VNF. 3. Brian Thompson 
Why are you interested in serving on the VNF Board of Directors?In the past few years I've become very interested in organic agriculture, eating/buying locally and fair trade; and I'd like to participate on more than the consumer level. Serving on the Board of Directors will be an excellent avenue for participating at a higher level, and is aligned with my skills and interests. I also think serving on the VNF Board of Directors is a good opportunity to have a positive impact in the community and learn something new. How are you qualified to perform the duties required of the board? I think the career path I have taken has prepared me well for the duties of the Board of Directors. I manage complex projects spanning many years that are regulated by the Food and Drug Administration (FDA). These projects require long-range planning, creativity, delegation and cooperation with colleagues and customers of varied skill sets and background. I'm a strong advocate for continuous improvement, which also requires vision and proactive change leadership. I know that in order to serve the co-op well, the Board/management need to listen carefully to the needs/wants of the members; not just to the point where Board thinks they understand the members, but the members think the Board understands them. I've also participated in numerous training opportunities covering communication, leadership and corporate financial reporting (GAAP and pro forma). The Board discusses all issues in an attempt to hear and accommodate many points of view. However, decisions are determined on the basis of majority rules. If you could not agree with the majority on a decision, how would you handle the situation? If a decision was made that I did not agree with, I would provide whatever support I could to ensure that the decision made was implemented successfully. It is everyone's responsibility in the group to support the decisions of the group. In the event that new information came to light that could affect the opinion of the group, I would certainly bring it to the groups attention if appropriate. What opportunities/challenges do you see in the future for Valley Natural Foods? An opportunity/challenge that I think is critical to the future of Valley Natural Foods, and co-ops in general is cooperation/communication amongst the local co-ops. Co-ops should be independent and successful on their own, but should also be opportunistic where synergies exist. The large grocery chains are working to attract many of the same people who might chose to shop at our co-op by appearing to provide similar products at lower prices. As a group of co-ops, one could imagine that we could be more effective in community education on how our co-ops/products are different, as well as reduce the cost of products/services to our members by coordinating efforts. Cooperation amongst local co-ops is an exciting topic that I would like to work to further. 4. Alan Rupp, Member 
Why are you interested in serving on the Valley Natural Foods Board of Directors?I have been associated with Valley Natural Foods in various capacities for over 20 years; as a consumer, member, General Manager and Board Director. I have always thought of it as an important community business, especially since it was helpful in my successful fight with cancer and dealing with personal allergies. I think it is important to participate in a volunteer activity that benefits the community and VNF is an excellent example of an organization with local community involvement. I feel privileged to have been a part it over the years. How are you qualified to perform the duties required of the board? I believe that I am well qualified to monitor and help the board deal with these four major aspects. Starting with my education with a Business Degree and a Masters in Management. I have previous management and financial experience as a General Manager of VNF and Vice President of Manufacturing Operations at a local business. Currently I continue to be involved with similar issues as Operations and Safety Manager at Satellite Shelters. Over the past 30 years in the Twin Cities South Metro area I have volunteered with or been a member of over 20 different local organizations and have been elected a Board Director at four of them. Board/committee process includes discussing all points of view but decisions are based upon majority rule. If you did not agree with the majority on a decision, how would you handle it? As a business professional I am aware that most board decisions are a compromise of the views, knowledge and understandings of all of it members. First, I would hope that by presenting my viewpoint as objectively and professionally as possible, I could convince the members to my viewpoint, but if I do not, I have no problem with implementing the majority's decision and working towards a successful outcome of the issue being addressed. It is a part of how a team functions for the greater good of the company. In the meantime I would try to learn why they decided the way they did. As a former adult instructor, I am always willing to learn. What opportunities/challenges do you see for the future of Valley Natural Foods?
Valley Natural Foods Co-op Community Fund
Valley Natural Foods Co-op Community Fund Northland Cooperative Commonwealth Northland Cooperative Commonwealth (NCC) is a start-up nonprofit whose primary purpose is developing and assisting worker-owned cooperatives in the Twin Cities metro area. NCC's mission is to help people bring wealth back to their communities by sharing the cooperative model and assisting in development of worker-owned businesses and other cooperatives. Our founding board members bring extensive cooperative experience to this work, including The Hub Bike Co-op, Seward Community Cooperative, North Country Cooperative, Harvest Moon Cooperative, the U.S. Federation of Worker Cooperatives, and the National Cooperative Grocers' Association. Our most immediate priority is developing our website and resource library. The resource library will be a community education tool, combining materials on worker cooperatives with information specific to Minnesota for incorporation, legal and tax professionals, technical assistance resources, and loans and capitalization. This library will provide a comprehensive point of first contact for groups working on worker co-op start up projects in Minnesota. The Partnership Garden at the School of Environmental Studies* The partnership garden mission, goals and community benefits is to build a diverse collaborative community committed to growing a sustainable organic garden at the School of Environmental Studies while learning, sharing, and teaching each other about gardening in partnership with nature and healthy foods.
*The School of Environmental Studies (SES) is an optional ISD 196 high school for juniors and seniors adjacent to the Minnesota Zoo. Supporting about 400 students, the mission of SES is to be a community of leaders learning to enhance the relationship between humans and their environment. SES maintains strong partnerships with many private and non-profit organizations that provide excellent volunteer, research, and internship opportunities for their students. Partnership Resources, Inc. Partnership Resources, Inc. (PRI) mission is "to create partnerships between people with disabilities and the community." PRI is a nonprofit day program serving adults with developmental disabilities, dedicated to providing clients with supports and opportunities that help them work and develop creatively. PRI serves over 200 clients, many employed in 37 work settings in the Twin Cities, including Valley Natural Foods Co-op. We have three agency settings with programs including arts with professional art instruction, music therapy, and volunteer opportunities for clients. We also encourage community involvement through "Made in the Shade," our annual walk, run, and roll, benefitting eight similar agencies and "Taste of Art," a fundraiser benefitting PRI and the American Culinary Federation. Together with community partners, staff, and Board, we'll help clients achieve their dreams, whether by supported employment, creative programming, or policies to ensure the success of PRI and lifelong enjoyment and health of clients.www.partnershipresources.org CaringBridge CaringBridge provides free, personal websites that connect people experiencing a significant health challenge to family and friends, making each health journey easier. Powered by a grateful, engaged community, we believe in saving time and emotional energy when communicating about a significant health challenge, providing safe and private spaces to share the experience, and bringing people together when health matters most. Every day, 10,000 people in the United States receive a new cancer diagnosis, experience premature birth, or suffer severe injuries from an accident. During that same time period, only 200 will turn to CaringBridge for support. That leaves 9,800 people every day who could benefit from CaringBridge but don't know it is available to them. We are committed to closing this gap by investing in initiatives that raise awareness of our services. Please consider supporting our mission. A health challenge is difficult, but together we can make the journey easier.www.caringbridge.org Dakota Woodlands Dakota Woodlands is the only shelter specifically for homeless families in our community. Their mission is to empower homeless women to create stable futures for their families. They are unique in many ways...families stay as long as necessary to move from homelessness to homes of their own; on average two months. During this time, they provide a variety of supportive services which address the issues related to homelessness and help residents to become more economically stable, achieve residential stability, improve their health and education, become a more integrated part of their community and strengthen their families. Follow up supportive services are also provided to former residents to continue support and growth. Funding from Valley Natural Foods would enhance these supportive services for families, helping Dakota Woodlands follow through with their mission and maintain their 89% success rate of helping residents move on to safe and affordable housing. www.dakotawoodlands.org Will Steger Foundation Just as Valley Natural Foods demonstrates a commitment to the environment through business operations and employee actions, the Will Steger Foundation (WSF) believes that people and organizations taking collective action can address climate change. Through our work together we have educated, inspired, and empowered people to engage in stewardship activities. Valley Natural Foods has generously provided organic food for our educational expeditions and educator Summer Institutes since 2006. Established by arctic explorer Will Steger, the Will Steger Foundation is a non-profit organization based in Minneapolis, MN. WSF works with educators by supporting them with curriculum, professional development opportunities, and action resources. WSF works directly with high school and college youth to support student leadership on climate change solutions locally and across the Midwest region. Finally, WSF also works collaboratively with local, state, and national decision-makers to craft sound energy policy and engage citizens across Minnesota and the Midwest. Learn more at www.willstegerfoundation.org. MN Valley Humane Society Minnesota Valley Humane Society (MVHS) is honored to be included in the Co-op Community Fund choices this year. With over 45,000 pet adoptions since 1981, MVHS finds quality homes for companion animals throughout the Twin Cities. MVHS serves Companion Animals and Families of the Greater South Metro Area with many different programs & services. Educating pet owners, youth and the wider community, MVHS offers an abundance of classes, group experiences and pet visitation programs. MVHS has sold its current building, and we have found a great building in Eagan to relocate to. In order to make our new home happen, we'll need the community's support. For more information, please visit www.MVHSpets.org. |
