Letter from the Board

Each year, the Wedge Board of Directors works on focusing its energies on the longterm strategic direction of the Wedge, while seeking to align itself with members' needs and desires. You will see by reading this report, as well as those presented by other Board members and staff, that the Wedge continues to thrive as an organization. The co-op maintains an excellent financial position: we have continued to grow both in size and in sales, we continue our work on the development of more meaningful connections with our membership, and we remain committed to programs designed to give back to the community that supports us.

Thanks to your patronage, we exceeded $35 million in sales this year. This growth represents not only our continued success at the store, but also our decision this past year to expand our operations and services at Co-op Partners Warehouse. Although we have expanded this area of service, the Wedge continues to operate free of any long-term debt, while increasing our cash and other assets.

In fiscal year 2006 our membership rolls increased to 12,434 active members at year end. Our huge membership is evidence of our success in getting the Wedge's message out: natural, healthy food provided by a member-owned co-op that focuses on sustainability, support for local producers, and support for the community. As always, the Wedge staff has continued its commitment to providing our members with phenomenal customer service and a broad selection of the finest in natural and organic foods, as well as other products to promote healthy living and sustainable environments.

As members and shoppers, we see reminders in the store every day of how well the co-op is doing. In addition to the excellent products, services, and other store intangibles, members can also directly enjoy in the success of their co-op through the issuance of the patronage refund. Your support of the co-op in the past year allowed us to substantially increase the amount of patronage refunds returned to members this fall. Soon, you will receive your portion of $801,814 in patronage refunds, which represents an increase of 43% over the amount refunded in 2005. The substantial cash rebated to members highlights the co-op difference - we return a portion of our profits to you, our member-owners. Profits are also used to support the community in meaningful and visible ways. The Wedge Board recently approved $50,000 in WedgeShare grants for local non-profit organizations providing services in the areas of organics, education and sustainability. The Wedge also contributes funds to the Midwest Food Connection, a non-profit group providing education to school-age children on natural and organic foods.

Our work in these areas is ongoing. As member needs change and the Wedge continues to grow, the Board will continue to evaluate strategies to address these changes, ensuring that members not only have a consistently positive experience in the store, but that we remain true to the Coop Values and Principles. As part of this effort, the Board recently reviewed and updated our Mission Statement and Goals. As we work on these issues, we also have strong support from our General Manager, Lindy Bannister, who has successfully become an integral part of our long-term planning efforts. We're confident that Lindy will ensure the Wedge's on-going success, while partnering with the Board as we work on strategies to address continued growth of the coop, changing member needs and the increasingly competitive natural foods environment.

We recognize, of course, that the success enjoyed by the Wedge doesn't just happen - our accomplishments are the direct result of the dedication, creativity and efforts of all of the store's management, staff and members. Thank you.

~ Marcy Cordes, President