Fort Collins Food Co-Operative Board of Directors Meeting
Monday June 26, 2017; 6-8:00 pm.
Room # 213 Statistics Bldg., SW corner of the Oval, CSU Campus
Notes by Ed Secor
Present:
BOD: Ruth Inglis-Widrick, Rich Gentile, Ed Secor, Drew Jeffers, Cindy Griffith
IGMT: Stephanie Bublitz, Theron Welch
Member-Owners:
No quorum, so no official meeting—discussion only.
1. 6:00-6:10 – Member Owner input (if no MOs present, sharing of MO input garnered by BOD members)
Co-op is Bike to Work station on Wednesday. This year, for first time in a long time Bohemian Foundation is not participating. Illegal Pete’s will provide breakfast burrito’s. Usually get about 300 folks stopping, but it is not really a business driver for the Co-op.
2. 6:10-6:15 – Propose changes to agenda
3. 6:15-6:20 – Approve Consent Agenda:
a. May 2017 minutes
Clarification—at end of May meeting, there was a discussion of meeting time. Recollection is that general concensus was that we could extend meeting time until 8:30 on an as-needed basis, with approval at beginning of meeting. We also agreed to hold some extra meetings if needed to consider specific topics.
b. P2 Report
c. P3 Report
d. X4 Report
e. Committee reports, if any – Research, Engagement, Visioning, Executive
4. 6:20- 6:55 – IGMT input
a. Finance Report
b. Updates from the store (Sent in advance; time spent on anything additional, or whatever needs to be elaborated on)
c. Updates on renovation plans/financing renovation (Joint discussion by IGMT and BOD of ideas for financing renovation)
5. 6:55-7:00 – Break
6. 7:00- 7:55 – BOD Agenda
a. “What is a Co-operative?” Review of/approval of P1; review of our Ends and 7 Cooperative Principles (Reading and introductory discussion of our own personal interpretation of what it means that the Co-op is a cooperative, whether we are offering truly valuable MO benefits; are we following these Ends and Principles, and how do we know?)
b. Engagement Committee – (Filling chair for the Engagement Committee and BOD next goals for Engagement Committee; Time for a Town Hall?)
7. 7:55-7:58 – Review of the meeting (How did we do?)
8. 7:58—8:00 – Announcements
General Discussion:
BOD member requested a list of the top selling items at the Co-op, both in number and in dollars. Co-op is only place selling CDB oil products other than dispensaries; but it is a lower margin (30%) than other supplements, (which are at 40%-50%), because the supplier is a workers’ collective.
We are in vicious cycle of losing members. How do we get back to a better cycle, of providing MOs dividends so that they are motivated to come in and spend more money at the Co-op. GMT says that dividend does not motivate shoppers; we are amCo-op, different from other businesses, and that is why people shop here.
Need to streamline policies and time spent on policy reports, etc., so that we can focus on promoting the Co-op.
What are the benefits of being a co-op, of being a member? We have several avid shoppers who want to support the business model and the local community of the co-op (local farmers, producers), but aren’t members–aren’t interested in being a member, getting dividends, etc.
Lot of folks who could/would shop at the Co-op don’t, for strong reasons (convenience, prices, etc.).
Three things have been important to people over the history of the Co-op—Affordable (low price), Healthy food, Education. Not sure we are filling those needs any longer.
We are looking for some other “nuggets” to provide for potential customers/members. What do we have that no one else does?
Consumer co-ops are the hardest co-ops to operate.
Nugget—a commitment to a sustainable and ethical food and food practices. Commitment is not to cheaper—cheaper gets you Walmart. This commitment is not “sexy” though. Hopefully One Tribe can get us closer. Cost actually is a larger issue, a larger conversation—maybe spending more on food, but less on health care.
Co-op is not, comparing item to item, more expensive than Whole Foods, and other grocery stores. Recent purchase of Whole Foods by Amazon will have unknown consequences for distribution. UNFI is supplier to Whole Foods; not sure what fallout of them working with Amazon will be. Beaver’s carries a generic brand (Surfine), and can raise margins on those products to offset very low margins on other (local) products (similar at Whole Foods and other mainline grocers). Can we collaborate with Beaver’s on ordering from UNFI, etc?
We need to control costs and/or increase sales. Controlling distribution is key.
When is session with One Tribe scheduled?
2,200 products (100-125 companies) are local. It is about 30% of sales (may be about 30% of products as well).
Education issues—Why should one eat locally?: economic and health benefits.
Co-op is a food incubator; people developing new products, starting new food ventures know that they can get exposure at the Co-op. We need to get better promotion in return from companies that become successful.
Look into getting promotion from medical providers—Dr. Cory Carroll is a strong supporter of the Co-op; Associates in Family Medicine sponsors farm dinners (AFM sponsorships are given out by individual doctors working with an allowance from the company).
Can we get the food buying club folks back into the Co-op?
Lowering costs is critical, whether pressing UNFI, partnering with other businesses in town, etc.
What is the business model (co-operative) that makes us unique, worth supporting?
–less hierarchical model.
–Not paying a CEO 400x the salary of regular workers.
–bringing democracy to the workplace, which we need badly. Democratic in two ways—Management Team makes decisions as a group, member-owners own the store and have a voice in the governance.
–Investment in the local food community—
–owned by friends and neighbors, not by out of state owners who take money out of state.
–for every $100 spent locally, about $65 stays in the community, which gets recirculated back through the community 4-7 times.
A lot of people who are looking for ways to make their purchasing habits contribute to more sustainability do not know about the Co-op. The BOD should be out bringing in new members every day. It is also the job of the other members and the staff to bring in new members. Not hearing the BOD setting tasks for itself to bring in more members. BOD is in catch up mode to simplify governance inherited from previous Boards and GMs.
Some discussion about membership model. When went to equity based membership from $20 annual fee, we lost a number of members. There are tax issues on an annual fee—it is a taxable purchase, while equity is not.
Ideas thrown out for promoting Co-op—bike banners suggested by MO at annual meeting. Suggestion that we get our strategic plan together, then use the plan to organize efforts. Who will step in and implement these parts of the plan? Cannot all fall onto the IGMT/staff. Some concern that putting aside MO contributions in favor of marketing company doesn’t feel like community oriented Co-op.
We are at a crossroads—a make or break point. We need to utilize our asset (building equity) to help us. We need to give the IGMT/store the best opportunity possible to succeed.
Wonder if the community can really support a co-op.
Discussion was ongoing when Ed left at 8pm.
