We are thrilled to announce that Middlebury Natural Foods Co-op (MNFC) had a profitable year! As a result, we will be issuing patronage dividend checks in late August for our fiscal year ended March 31, 2024. This is the 9th consecutive year the Co-op has sent dividend checks since members voted to start this system.
As member-owners of the Co-op, its profits belong to you. Patronage dividends are how the Co-op’s profits are equitably shared among members. The patronage dividend is a powerful reminder of the uniqueness of the co-operative grocery model, and what can be achieved when individuals work together as a community.
This year, the total patronage amount is $710,032. The Co-op will reinvest 55% back into the business for maintenance and other short and long-term projects – this becomes part of what we collectively own as member-owners. The remaining 45% will be returned to you – the owners of our grocery store. That’s $319,514 being returned directly to 5,591 of our member-owners!
How big of a check can you expect?
How much you receive is based on how much money you’ve spent at the Co-op during the previous fiscal year (April 1, 2023 – March 31, 2024). Refunds amounting to less than $5 will not be issued, as the cost of processing them exceeds the check value – so not everyone will receive a check. These smaller amounts, totaling $3,517, will instead be donated to our local food shelves, HOPE and CVOEO, where they make a meaningful impact on the well-being of our community. Checks that are left uncashed after 180 days are also donated.
Finally, remember that you can use your dividend to purchase groceries at the Co-op! Just present your endorsed check to the cashier at checkout, and they will deduct the amount from your total.
Thank you for being an essential part of our Co-op community!
Hope and CVOEO each received a check on behalf of our member-owners for $22,652!!
When your Co-op makes a profit at the end of a fiscal year, the Board of Directors votes on how much of those earnings to retain and how much to refund back to our member-owners. Patronage dividends are a traditional way for co-ops to share profits back to the members. As member-owners of this Co-op, you also own the profits, and a patronage dividend system allows us to share and reinvest those profits to benefit our Co-op community.
Since patronage refunds are based on how much a person spent at the Co-op during the previous fiscal year, every member-owner’s check will vary. If a refund check is below $5, the cost of issuing the check exceeds the refund amount. In this instance, the Co-op will not issue a check and instead donate all checks under $5 to our local food shelves HOPE and CVOEO. All member-owners have 90 days to cash their patronage refund checks, the amount of any uncashed checks is also donated to HOPE and CVOEO.
At the end of October, Middlebury Natural Foods Co-op was able to donate all uncashed patronage checks and total patronage set aside for the 2022 and 2023 Fiscal Year. The total donation was more than $45k! Thank you to all of member-owners for allowing your Co-op to make such a contribution. And an enormous thank you to the wonderful people at CVOEO and HOPE for showing up each day to provide for our community.
Our friends at CVOEO: Addison Community Action
HOPE-VT
For more information about how our patronage refund system works, click here.
Thank you so much for making the Co-op a successful part of our vibrant local community!!!
In June this year, we welcomed five new directors to our Board: Barbara Hofer, Caryne Eskridge, Cody Mears, Erika Dunyak, and Zan Goldblatt. They have jumped right into learning about our Board’s policy governance system, helping decide on this year’s patronage dividend, monitoring the annual Ends Report from our General Manager, and much more. Current Board Member Ollie Cultrara checked in with them to learn how they are bringing their unique perspectives to board governance work on behalf of MNFC member-owners. (Some of their comments were edited for clarity and brevity.)
What’s something that has surprised you in your first few months on the Board?
Barbara: I did a training with other new board members from around the country and was surprised to find out how unusual our Co-op is compared to many others. Many co-ops are struggling both financially and in terms of member involvement. We are thriving financially, we are able to refund patronage dividends to our member-owners, and we have competitive elections for our Board. I’m proud of what our members, managers and staff have created and nurtured over these many years, and I’m honored to be part of a group so committed to sustaining that success.
Cody: It has been exciting to learn more about how MNFC is meeting our Ends statement on Environmentally Sustainable and Energy Efficient Practices. Many efforts are being made to increase the usage of reusable containers as well as partnering with producers that have their own reusable totes, apple crates, etc. It’s been eye-opening to learn about the larger efforts of waste diversion for things like plastic film and cardboard due to the sheer volume of these materials that MNFC encounters on a daily basis.
Erika: I’ve been so impressed by the community and engagement of the Board. The Board members prioritize their positions on the Board and create space for folks to contribute and to learn. It’s a truly collaborative and respectful group of people.
What other hats do you wear, and how do those aspects of your life influence the perspective you bring to the Board?
Zan: Mother, Farmer, Communitarian; with those hats how could I not love the Co-op? As a parent I want to be sure I have great food to feed my kids. Maybe they don’t always eat it, but at least I tried! As a farmer I want to support my colleagues; I know how hard they work to put food on my table because my family works just as hard to put our lamb on theirs. As a communitarian, I am driven to invest in the things that make Addison County great. Part of loving the Co-op means doing my part to join in and make sure it stays vibrant.
Caryne: In all of my roles—pastor, mental health worker, and individual—building community is at the heart. I bring lots of experience in group dynamics and group processes, especially around accountability and repair. I got excited about running for the Board when I learned that the MNFC is a cooperative first, and a grocery store second. I’m looking forward to learning more about how that reality frames the work of the Board and of the MNFC more broadly.
Barbara: I’m a research psychologist writing about science denial, with strong concerns about climate change, and I’m appreciative of the Co-op’s deep commitment to environmental issues—and I think we could do better yet.
Cody: Between being a member-owner, working with outdoor retailers during my day job, and helping out on my family’s farm, the perspective I bring to board work is often seen through a few different lenses. I am leaning on my strong understanding of the retail environment and what it means to be a producer as I shape my approach to board work.
Erika: I’m an attorney, an entrepreneur, and an educator. My role on the Board gives me space to use all of these skills, whether we’re analyzing financial data to inform patronage dividend decisions or we’re ensuring our corporate governance compliance. I deeply understand the framework of cooperative structures and cooperative decision-making. It’s so fun to bring that expertise to the on-the-ground board meetings.
What does Cooperative Democratic Ownership mean to you?
Caryne: In January 2022, a few months after I moved to Vermont, I heard a Brave Little State podcast episode called “Why are Vermont co-ops so successful?” The journalists covered the history of co-ops in Vermont, founded on the idea that when neighbors come together they can meet more of their needs than if they acted alone. This remains quite a radical idea, and yet I witness it proven true over and over. MNFC is part of this tradition, and I love that this model keeps the purpose of the Co-op’s existence in the hands of the community. I ran for the Board because I want to learn more about how this model works and because I would love to see the “Democratic” element become even more active and broad.
Erika: My professional life centers on co-ops, so I think about this a lot. “Cooperative” says to me that, even while we don’t all agree, we have mutual respect and are working toward shared outcomes. “Democratic Ownership” means that the interests of the enterprise are held collectively, by all those who use the cooperative. That’s such a special thing. Business ownership is increasingly consolidated as mega corporations undercut prices and convenience while paying subsistence wages and emptying our downtowns. The success of MNFC is a testament to Addison County’s support of itself over Wall Street. We are all part of a resilient economy that feeds itself (literally and figuratively).
At the end of August, your Co-op began to mail out Patronage Refund checks to our member-owners. Patronage dividends are a traditional way for co-ops to share profits back with the members. As member-owners of this Co-op, you also own the profits, and a patronage dividend system allows us to share and reinvest those profits to benefit our Co-op community.
The Board and Management are excited to issue patronage refunds again this year, our 8th year in a row since members voted to start a patronage dividend system. This year, the total patronage amount is $628,781. The Co-op is retaining 35% and returning 65% to you. The amount retained in the Co-op belongs to the member-owners as a group. It becomes part of what we own together. This year we expect to spend approximately $200,000 on improving the roof of our Co-op’s administrative building and replacing our oldest equipment including cash registers, kitchen range and back-room shelving.
How does this year’s refund compare to prior years’ patronage refund checks?
This will be our biggest patronage refund in the history of the Co-op. Below are the previous refund amounts going back to 2020.
How big of a check can you expect?
Since patronage refunds are based on how much a person spent at the Co-op during the previous fiscal year (April 2022 – March 2023), every member-owner’s check will vary. This year the refund will work out to about a 2.2% refund on what you spent last year. Here are a couple of examples:
Jack’s average weekly purchase is $50/week = $2,600/year
Jack’s patronage refund check will be $58 which is about 2.2% of their total purchases for the year.
Jane’s average weekly purchase is $100/week = $5,200/year
Jane’s patronage refund check will be $116 which is about 2.2% of their total purchases for the year.
Does everyone get a check?
Unfortunately, not everyone will get a check. If a refund check is below $5, the cost of issuing the check exceeds the refund amount. In this instance, the Co-op will not issue a check and instead donate all checks under $5 to our local food shelves HOPE and CVOEO. This year a total of 1,205 checks will be donated totaling $2,756.
Our friends at CVOEO: Addison Community Action
HOPE-VT
For more information about how our patronage refund system works, click here.
Please be sure to cash your check within 90 days. Please note that if you do not cash or deposit your check within 90 days, the check will become void, and the Co-op will donate the amount to our two local food shelves, HOPE and CVOEO.
Thank you so much for making the Co-op a successful part of our vibrant local community!!!
