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Annual Report – Fiscal Year 2021

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Annual Report

20 21


RACIAL, SOCIAL, AND FOOD JUSTICE IMPACT REPORT CLASSES & EVENTS: Pictured: Youth from the Lower Phalen Creek Project

35 of our 50 virtual classes, or 70% of all classes, were taught by BIPOC instructors, bringing diverse perspectives and recipes to our co-op community.

DONATIONS:

Introduced the event series “Co-op Community Conversations: Exploring the Intersection of Racial, Social, and Food Justice” in conjunction with Twin Cities food co-ops as a way to examine and connect our cooperative values with social justice movements. Featured quarterly events this year included a discussion around the film “Jim Crow of the North,” housing, and food justice, and “Art + Abolition,” an event to honor and celebrate the protest art of this past year.

Donated over 200 lbs. of local sweet potatoes and the time of four staff members to bake sweet potato pies with Sweet Potato Comfort Pie for community members on the anniversary of George Floyd’s murder. Donated over $200 worth of seed packets to grow fresh produce in the garden at George Floyd Square for Earth Day. Invested $650 in sponsorships to the Overcoming Racism Conference and Healing Justice Foundation. Increased Positive Change donations by over 30% after pivoting the program’s focus to support racial and social justice along with increased emphasis on food access. 83% of Positive Change recipients featured in the past year primarily serve diverse communities.

2 | 2021 ANNUAL REPORT

Donated to and/or attended three Juneteenth celebrations with 40 Acre Co-op, Sweet Potato Comfort Pie, and the St. Paul YWCA.

CO-OP STAFF & VENDORS: As of July 2021, organization-wide, 38% of staff identify as BIPOC. BIPOC-owned vendor sales have grown by 48%. Immigrant-owned vendor sales have grown by 33%.


GENERAL MANAGER REPORT CATHERINE DOWNEY, General Manager LAST YEAR I SAID CHANGE WAS THE THEME, AND SO IT REMAINS. COVID-19 continues to have a profound impact on our co-op, community, and world. Just as we saw light on the horizon, the Delta variant started storming and what we once viewed as an emergency has now become a long, exhausting haul. Like the rest of the country, we are navigating historic staffing shortages and ongoing disruptions in the supply chain that impact the service we can offer. Our incredible staff persist despite the obstacles, for which I have immeasurable gratitude. Sales for the year came in at just over $31 million. For the second year in a row the board voted to issue a patronage refund, and we were able to reward our staff with a bonus. Our financial position remains strong, and we are well positioned for what lies ahead. We are starting to think about the Selby remodel again. As our busiest store and oldest physical plant, there are many opportunities for energy-efficiency improvements, overall polishing and general flow. We are also evaluating our product policy to help address barriers to food access. In addition, we have made strides in our commitment to improving our BIPOC diversity, both in vendors and staff. While my first year as General Manager has presented challenges, so too has it provided countless opportunities. I remain steadfast in my belief that the co-op is in a unique position to influence positive change in our communities and I will do my best to serve staff and owners with a progressive vision.

“I REMAIN STEADFAST IN MY BELIEF THAT THE CO - OP IS IN A UNIQUE POSITION TO INFLUENCE POSITIVE CHANGE IN OUR COMMUNITIES.”

We will continue to strive to make the co-op a great place to work and shop. We are grateful for the ongoing support of our members and shoppers; you sustain us and give us the strength to carry on. THANK YOU!

2021 ANNUAL REPORT | 3


FINANCIAL SUMMARY $31,105,960 T O TA L SALES

(1.14% decrease from FY 2020)

FY 2021 profit (0.35% of sales)

SALES TO MEMBER-OWNERS

TOTAL SALES FISCAL YEAR

$110,380 after-tax

2021

77%

$31.11 million

2020

76%

$31.46 million

75%

2019 2018

78%

2017

79%

2016

76%

$30.43 million $31.07 million $31.60 million

80%

2015 5 4 | 2021 ANNUAL REPORT

$30.42 million

10

15

20

$28.69 million 25

30 $ MILLIONS


BOARD REPORT LAUREN SIEGEL, President and Diversity, Equity & Inclusion Committee Member THE PAST YEAR SEEMS TO HAVE SOLIDIFIED THE REALITY THAT CHANGE IS CONSTANT, and any plans should be adaptable for inevitable change. Recovering from 2020 while experiencing this change and uncertainty have been particular challenges of 2021. However, thanks to our preparation and planning over the years, Mississippi Market has adapted to this ever-changing landscape. Systemic disparities in food access combined with the pandemic have made food insecurity in Minnesota an even more pressing issue. Mississippi Market has been a consistent force and model for the cooperative principle “concern for community.” This principle has been elevated with the launch of a new food donation program; a food rescue partnership with Keystone Community Services; a food justice webpage; and pivoting our Positive Change program to prioritize nonprofits focused on food access and hunger relief, social and racial justice, and local food system support. The board of directors also prioritizes policies and practices that support increased connection to communities so that Mississippi Market can be an even greater force for food justice. The board has been impressed and grateful for the leadership of our new general manager, Catherine Downey. Her first year required her to respond to unprecedented challenges. The co-op has had a strong response to these challenges thanks to her knowledge and leadership style. Even more impressive, she has started to plant seeds for new and innovative ways for us to function and reflect our diverse communities.

“WE ARE CREATING NEW WAYS FOR MEMBERS TO ENGAGE IN THE COURSE AND PLANNING OF OUR CO - OP, AND WE HOPE TO HEAR FROM YOU.”

Thanks to thorough planning, talented leaders, and a diverse and engaged membership, Mississippi Market is on the precipice of many new opportunities. We are creating new ways for members to engage in the course and planning of our co-op, and we hope to hear from you. Your engagement gives us our best chance at seizing these new opportunities.

2021 ANNUAL REPORT | 5


COMMUNITY IMPACT REPORT Following the cooperative principle of Concern for Community, we work for the sustainable development and overall well-being of our community.

1,618

27,826 DONATION AND EDUCATION

FOOD DONATIONS

LOCAL IMPACT

MEMBERSHIP

6 | 2021 ANNUAL REPORT

pounds of food donated through monthly food drops, including local peaches, apples, hulled millet, potatoes, carrots, ground beef, oranges, pears and bananas

pounds of food rescued and donated to Hallie Q. Brown and Merrick Community Services

87 cases of fresh produce, meat and dairy donated to Keystone Community Services through our new food rescue program in partnership with Albert’s, including chicken thighs, corn tortillas, tangelos, celery, salad mixes, eggs and milk


$1,960 in co-op gift card donations to 57 different organizations

3,948

Wholesale purchases totaled

OF THOSE PURCHASES,

$6,308,842

were LOCAL, spent with locally owned companies and producers. That is 35.77% of our wholesale purchases!

$17,637,244

participants took a free virtual class at the co-op last year

$10,000

91%

in support of Midwest Food Connection, teaching kids in Saint Paul schools about healthy eating

of staff are vaccinated, thanks in part to the onsite vaccination clinic held in March

$168,974.80 in Positive Change bag credits and round-up donations for 12 local nonprofit recipients

Member-owner coupons redeemed for discounts:

Active member-owners:

$317,639

$35,127

in sponsorships and outreach

19,387

New member-owners this year:

LIME discounts given:

1,314

$150,960

Total LIME memberships:

2,152 2021 ANNUAL REPORT | 7


THANK YOU!

Due to your generosity, we donated $168,974.80 to 12 local nonprofit organizations this year through our Positive Change program. That total includes a $10,000 match from the co-op and over 17,000 10-cent bag credits with donations from nearly 300,000 shoppers, making it truly a grassroots community effort.

JULY 2020

AUGUST 2020

SEPTEMBER 2020

$11,004.09

$11,195.21

$11,130.79

JANUARY 2021

FEBRUARY 2021

MARCH 2021

$12,437.45

$11,576.51

33,141.47 combined dollars & pounds of food

8 | 2021 ANNUAL REPORT


“I want my grandchild to grow up healthy and strong, to be able to eat good and real food — thank you so much, Mississippi Market, for helping make that happen.” – JACKIE H., Lifetrack OCTOBER 2020

NOVEMBER 2020

DECEMBER 2020

$11,387.86

$13,323.62

$14,043.11

APRIL 2021

MAY 2021

JUNE 2021

$13,546.62

$13,196.65

$12,437.45 2021 ANNUAL REPORT | 9


FISCAL YEAR 2021

BALANCE SHEET

June 30, 2021

June 30, 2020

June 30, 2019

8,046,252

7,552,635

5,785,601

13,206,593

13,857,988

14,585,354

2,914,943

3,097,176

3,076,717

24,167,788

24,507,799

23,447,672

Current Liabilities

7,710,856

3,056,332

3,020,973

Long-Term Debt

7,562,810

14,190,166

13,318,827

15,273,666

17,246,498

16,339,800

116,322

115,872

116,772

Class B / Non-voting

6,151,290

6,061,143

5,987,894

Class C / Non-voting

126,500

126,500

126,500

293,641

314,698

338,938

2,206,369

643,088

537,768

8,894,122

7,261,301

7,107,872

24,167,788

23,447,672

23,447,672

ASSETS Current Assets Property & Equipment, Net Other Assets TOTAL ASSETS LIABILITIES

TOTAL LIABILITIES MEMBER EQUITY Membership Stock: Class A / Voting

Donated & Other Retained Earnings TOTAL MEMBER EQUITY TOTAL LIABILITIES & MEMBER EQUITY

10 | 2021 ANNUAL REPORT


I N C O M E S TAT E M E N T

Year Ended June 30, 2021

Year Ended June 30, 2020

Year Ended June 30, 2019

$

%

$

%

$

%

31,105,960

100

31,463,597

100

30,424,043

100

Cost of Goods Sold

(18,660,846)

(59.9)

(18,945,518)

(60.2)

(18,513,489)

(60.9)

Member Discounts

(525,967)

(1.6)

11,919,247

38.3

12,518,079

39.8

11,910,554

39.1

11,152,032

(35.8)

(11,254,694)

(35.8)

See Above

(1.6)

(484,110)

(1.5)

SALES

Gross Profit

Operating Expenses Member Discounts TOTAL OPERATING EXPENSES Operating Profit

Other Income (Expenses) Patronage Dividend Income Tax Provision NET INCOME (LOSS)

11,152,032 (35.8)

(11,738,804) (37.3)

(11,358,499) (37.3) (455,426)

(1.5)

(11,813,925) (38.8)

767,115

2.4

779,275

2.5

96,629

0.3

1,230,338

(3.9)

(426,688)

(1.3)

(270,927)

(0.9)

(372,135)

(1.1)

(183,780)

(0.6)

0

0

(78,034)

(0.2)

(58,427)

(0.2)

38,082

0.1

1,547,284

5.0

110,380

0.4

(136,216)

(0.4)

2021 ANNUAL REPORT | 11


SUPPORT YOUR LOCAL FOOD SYSTEM by giving the gift of a co-op gift card — either to be used on delicious food or for the recipient to purchase a co-op membership! Gift cards are available at any register and can now be purchased on our website! Online gift cards are valid at all three stores, available in several pre-set amounts, and mailed to the recipient of your choosing after purchase.

1500 West 7th Street Saint Paul, MN 55102 7:30 am–9:30 pm 651-690-0507

msmarket.coop |

622 Selby Avenue Saint Paul, MN 55104 7:30 am–9:30 pm 651-310-9499

@msmarketcoop

740 East 7th Street Saint Paul, MN 55106 8 am–9 pm 651-495-5602


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