COMMON GROUND

IMPACTS REPORT

2013

CONTENTS2. LETTER FROM THE GENERAL MANAGER

3. LETTER FROM THE BOARD OF DIRECTORS

5. WORKPLACE CULTURE

7. INCLUSION EFFORTS

9. COOPERATIVE STRENGTH

11. EDUCATION

13. LOCAL FOOD

2013 was a powerful year for Common Ground Food Co-op.

The passion of CGFC’s owners, the vision of our Board, and the hard work of our sta� has led to a place we only dreamed of in 2005. Back then the Board, sta�, and owners gathered to figure out what they wanted for the future of their food cooperative. They found that what they wanted to accomplish was limited by CGFC’s location, a non-retail space in the basement of a church. The goal became clear: CGFC needed a store-front retail space where it could grow into a full-service grocery store. This new location would be open to the public and have the resources to o�er education, to be a community-building gathering space, and to serve as a hub for a thriving local foods movement.

2013 is the year that not only proved that the vision built in 2005 of CGFC’s future was attainable, but made it a fully-fledged reality. With the move to Lincoln Square in 2008 we obtained that retail store-front space that was open to the public, but it was our second expansion five years later that completed bringing the vision to life. The addition of many new departments allowed CGFC to become a truly full-service grocery store, and with the Flatlander Classroom and expansion of Food For All the vision was finally fulfilled.

The report you hold in your hands measures out the fruits of attaining the vision. The results of your support of and faith in CGFC has been nothing short of phenomenal. This is the power of community.

My job is to tell you about CGFC as a business, and as a business 2013 was a strong year. In our first year in the fully expanded store CGFC’s sales were just over $7 million, a 77% growth over 2012’s sales. These sales were 26% higher than had been projected for the first year of the expanded store and with that came an overall stronger fiscal performance, positive cash flow, and almost breaking even in our first year post-expansion, which was not expected until our third year post-expansion. CGFC is in an even stronger fiscal position than we’d projected entering into 2014.

In April of 2013, the Board and I announced that CGFC was beginning to study feasibility for a second location that would be in Champaign. Thank you for all you have done and will continue to do for our community through your support of your Food Co-op.

LETTER FROM THE GENERAL MANAGERJacqueline Hannah

2

At Common Ground the owner-elected Board of Directors is responsible for monitoring performance, ensuring that our cooperative progresses towards our Ends, representing the owners, and working with the owners and General Manager to envision the future. From our work in 2013, the Board would like to share a few highlights.

The expansion is complete! What’s next? We completed monitoring of the 2012 expansion, which came in under budget! The store financials were presented to owners at the spring meeting. After reviewing the results from the owner visioning session from fall 2011, we determined that our Ends remain an accurate reflection of what our owners want. Throughout the year, we worked with the General Manager to investigate the feasibility of a second store, including reviewing a market study on the topic.

Transparent and e�cient Board process. With the growing stature of the cooperative we oversee the Board also focused in 2013 on more structured, transparent, and e�cient handling of our duties. We charged two new committees, Policy and Board Development, which have improved our e�ciency. We completed a thorough revision of our bylaws and governance policies, with the bylaws changes approved by the owners and the policies approved by the board in October. These changes allow our governance structure to grow with our cooperative and make the monitoring process clearer and more focused. We held an informational meeting for owners interested in running for the board, followed by a hotly contested election, and developed a formal orientation for new board members. Board skills were strengthened, and our experiences shared, through participation in national and regional conferences. Coming up next: For 2014 we have planned a year of study relating to second store feasibility and looking even further ahead. Please keep your comments coming, whether in person at the second Saturday tabling events, owner meetings or via email at board@commonground.coop. As this impacts report demonstrates, our individual actions add up to substantive change!

3

LETTER FROM THE BOARDTodd Sweet | Board President

4

OU

R E

ND

S

VIBRANTEnd #1: The Co-op is the center of a vibrant, inclusive community

Paid Time O�Health InsuranceDisability InsuranceEmployee DiscountGet-To-Work IRALife Insurance Voluntary Life InsuranceDentalVision

Full Time Benefits Part Time BenefitsEmployee DiscountGet-To-Work IRALife Insurance Voluntary Life InsuranceDentalVision

91 percent of Co-op employees would recommend Common Ground asa great place to work.

5

*orange denotes benefits that are new as of 2013

240 dollars a year in reimbursement for bicycle-related expenses through CGFC’s Bike-to-Work program.

72 dollars a year in reimbursement for bus-related expenses through CGFC’s Get-to-Work program.

Every employee is eligible to receive

Common Ground takes pride in our ability to cultivate a respectful, diverse, and satisfied sta� and believes it to be essential to a vibrant community. In addition to seeing monumental sta� growth in 2013, Common Ground also made significant improvements to our benefits package, and worked towards providing a living wage for all employees.

100% of Full and Part time CGFC employees earn a living wage of at least $9.25 an hour.The MIT living wage model for CU calculates a living wage as $8.30 an hour for one adult. Common Ground searched further and found that the national food cooperative movement created its own living wage model that any co-op can apply to their community by entering local cost of living data. When Common Ground entered our local data using this tool, the result came to $9.23 an hour as base living wage for a single adult in Champaign-Urbana.

INCLUSIVECommon Ground’s Food For All program started when we moved to Lincoln Square Mall in 2008. Global food prices were on the rise and sta� and owners voiced concern that the local, organic, and natural foods that the Co-op focuses on would cease to be accessible. Food For All was borne out of this concern for accessibility. The program has grown to include our Cooking Healthy on a Budget classes, Food For All Staples List, Equity Grant, Recipe Collection and Education Grant. Food For All has grown into a nationally-recognized program that has been an inspiration to other co-ops around the country.

0

10

20

30

40

50

60

70

80

90

100

Discount Equity Class Education Grant

201120122013

7

A COMMUNITY FUNDED PROGRAMFood For All’s main funding comes from an annual plant sale held on the CGFC porch. Local farmers generously start heirloom seeds for us, and all profits go to the Food For All program. The plant sale’s revenues have increased dramatically over the years

End #1: The Co-op is the center of a vibrant, inclusive community

NU

MB

ER

OF

PA

RT

ICIP

AN

TS

8

10

24

number of large community events that CGFC sponsored in 2013

community events hosted by Common Ground

60 organizations that received donations from CGFC* not including Round Up for Good organizations

25655 dollars donated tocommunity organizations* not including Round Up for Good organizations

9373dollars donated byCGFC shoppers through the Round Up for Good program.

CREATING COMMUNITY

9

COOPERATIVE STRENGTH

We promote cooperative ownership

$434,067 Organic ValleyEqual ExchangeJust Co�eeFrontier Co-opBig Tree Organic Farm

77.81% Of total sales were made by owners$79,140 Equity added1,319 New Owners

Amount of Common Ground Cooperative dollars spent with other cooperatives

END #2: The cooperative movement is strengthenedCommon Ground exists as a part of a larger community of cooperative businesses around the world, all of which abide by the Seven Cooperative Principles. The cooperative movement empowers our community by allowing individuals to become active participants in a democratically-controlled business. We are committed to strengthening this model both within the C-U area and in the larger cooperative movement.

CREATING COMMUNITY

CGFC provided help and support to the following start up

food co-ops in 2013:

Prairie Food Co-opLombard, IL

Green Tomato Food Co-opBatavia, IL

The Chicago CooperativeChicago, IL

Macomb Food Co-opMacomb, IL

Green Top GroceryBloomington-Normal, IL

Terre Foods Cooperative MarketTerre Haute, IN

Sugar Beet Food Co-opOak Park, IL

Peoria Food Co-opPeoria, IL

10

11

EDUCATIONEnd #3: The Co-op serves as an educational resource on food issuesIn 2013 we opened the Flatlander Classroom, re-a�rming our community’s deepdedication to education.

WE BUILD COMMUNITY EDUCATION In response to owner demand and in order to o�er the most comprehensive range of classes we partnered with the Flatlander Fund to create a flexible space for community building and community education. Community education fosters a great learning environment as well as a great environment for new teachers to hone their craft.

10

27

145

community educators brand new to teaching

teachers new to the Co-op

classes o�ered

WE CREATE FLEXIBLE AND ACCESSIBLE COMMUNITY SPACEWe are committed to o�ering a vibrant place for community education to grow. Following our 2012 expansion we were tasked with the unique challenge of building an educational space and growing it to best meet the desires of our now 5,200+ Owners. We have o�ered a huge array of classes ranging from more than 85 cooking classes to kids classes to gardening classes to DIY to wellness to bikes to wine.

WE HAVE BUILT A STURDY FOUNDATION2013 brought our class sign-ups online, brought increased access through Food For All Education Grants, brought a juried art gallery to our Co-op, and brought a wonderful community space to life in the Flatlander Classroom, making a sturdy foundation for the future of Common Ground Food Co-op Education.

1,400490226

2011 2012 2013

ANNUAL PARTICIPANT COUNT IN CGFC’S EDUCATION PROGRAM

13

LOCAL FOODEND #4: Our local food chain is equitable, robust, and environmentally sound

$ to localproducers

780,441 47 28

67.35% increase

49.75% increase

73 471,131,000

local producers

regionalproducers

local purchase amount during winter months

Common Ground participates in our local foodshed by setting standards for fair business practices and encouraging sustainable farming and distribution. By continuously expanding the variety of local products we o�er, we stimulate growers to diversify their o�erings and consumers to purchase a wider selection of local products. We foster connections in the foodshed and promote awareness of the local food movement and of other local food-related businesses.

ANNUAL SALES TO LOCAL PRODUCERS

2012

2013

Common Ground defines local as within 100 miles of the store. Common Grounddefines regional as any state that borders Illinois as well as Michigan.2008

$192.2K$305.6K

$431K

$571.3K

$780.4K

$1.131MILLION

20092010

2011

2012

2013

63% increase of $to local producers

of CGFC’s unsellable produce and production waste is either taken to local soup kitchens or to Mullberries Farm and Orchard to be turned into compost.

events o�ered featuring local farmers and producers

300 S. Broadway Ave. Suite 166 | Urbana, IL 61801217-352-3347 | www.commonground.coop