From the Board

Fiscal Year 2009 Report

The Wedge Board of Directors is pleased to report that this past year — in which the U.S. economy experienced its biggest financial crisis since the Great Depression — the Wedge has performed very well despite the heavy economic turbulence. Our positive financial results are due both to our experienced and highly competent management and staff, and to your ongoing loyalty. In addition, we are continuing our work on the development of meaningful connections with our membership. We also remain committed to programs designed to support all of the communities that work with us, including neighborhood groups, local charitable organizations, our community of Twin Cities co-ops and, of course, our local growers and producers.

The State of the Co-op

Our financial results, which include operations in the store, Wedge Worldwide, Co-op Partners Warehouse and Gardens of Eagan, show that we ended our fiscal year on June 30 with sales of $39,794,327 — marking an approximately 1 percent increase over last year. However, increasing costs resulted in a smaller operating profit. Therefore, we were able to put aside $1,155,304 in patronage refunds. This is about $160,000 less than last year, but it is still a significant amount. This is the portion of the Wedge's profit that our purchases generated and that we all share in. We consider ourselves fortunate compared to many food stores which have suffered heavier declines.

Additionally, we have a solid financial base with no long-term debt, and we have been able to increase our cash and other assets. This financial strength has enabled us to continue our strong programs of community outreach and other initiatives. Again this year, we contributed $50,000 to WedgeShare, which awards grants for local non-profit organizations providing services in the areas of organic food, education and sustainability. We continued to support the Midwest Food Connection, a non-profit organization providing elementary school programs about natural and organic food, And we are beginning the start-up for the new non-profit Organic Field School at Gardens of Eagan, where we will teach farmers how to raise food organically.

Perhaps the most important program begun by the Board this year is a strategic planning initiative that will help us identify the Wedge's vision, mission and long-range goals. We expect to complete the planning phase of this initiative over the next few months. Management will then follow through with shorter-term objectives that will enable us to carry out these goals. This program should help us maintain an effective and consistent direction as we move into the future. The initial part of this process has been made easier by the research done over the last few years concerning your needs, values and concerns, as we are committed to setting a long-term direction for the Wedge that closely reflects the needs and values of our membership as a whole.

We do this in the context of a rapidly expanding and increasingly competitive natural foods industry. Aligning member desires with our need to continue to innovate and maintain our relevance in this competitive environment is a tremendous but exciting challenge for the Wedge. We appreciate your support as we continue on this journey.

Despite the economic uncertainty of this past year, we were given additional confidence by the continuing growth of our membership, which is now over 14,000 for the first time. Our large and growing membership is evidence of our success in promoting the Co-op's message: natural, healthy food, provided by a member-owned co-op that focuses on sustainability, support for local producers and support for the community.

Our Membership Connection

The Board continues to work actively on enhancing our connection to the membership. Our program of surveying members is ongoing and is expanding to include those who are customers but not yet member-owners. The information we gather will help us further improve our understanding of both members and non-members: what they value most about the Wedge, what they like or dislike about the shopping experience, and what they would like to see in the Wedge's future. We'll be sure to keep you informed about our findings.

As always, the Board recognizes that all of the success the Wedge enjoys is a direct result of the dedication, creativity and efforts of all of the store's management, staff and members. Our sincere thanks to all of you.

Finally, in an economic climate which continues to be challenging, we need to remember that in cooperation we have tremendous strength. That is what a co-op is all about: gathering together to do collectively what we can't do as individuals. We are partners in this endeavor and in its success. We have much to celebrate in our cooperative community!