Forty-one voting members of the Muenster Co-op gave the thumbs up to the proposed amalgamation of their operation and the Humboldt Co-op. The vote, taken on Tuesday evening, following an engaging question and answer period, was unanimous.
Muenster Co-op Board Chair Glenn Korte introduced the proposal, stating that the Muenster Board supported the amalgamation for the viability of the Muenster store and gas outlet.
Through the Q and A period, it was revealed that the Co-op operation in Muenster had faced challenges for the last number of years, posting a succession of losses up to $30,000 annually. While providing excellent service and an outlet that’s vital to the community, it became evident that expenditures on operational items such as accounting and administration were hampering the ability of the food store and gas keylock to turn a profit.
Compounding challenges for all Co-op retailers system wide was the recent cyberattack that crippled Federated Co-op's communications with its retailers, resulting in an inability to place orders and resulting in a shortage on products. However, local cooperation among retailers including Humboldt and Lake Lenore managed to alleviate some of the impact, a testament to the commitment of Co-op's local support and supply sharing.
On the state of Co-op's operations in Humboldt and Lanigan, General Manager Joe Von Doellen said that both he and Federated Co-op sought to strengthen their foothold against competition retailers with new and innovative products and options.
The recent introduction of liquor sales into the Muenster store has been positive, stated Board member Glenn Sylvestre, but it was too early to tell what potential impact the line would have in the longer term, even though the margins were attractive.
Immediate benefits for the Muenster retail store would be the availability of produce and food goods in more manageable amounts that would reduce waste and increase variety. The presence of the newly opened Co-op Liquor Store in Humboldt meant that supplies to Muenster would better match its volume of sales with reduced cost.
Muenster members would maintain their equity through a transfer to the newly amalgamated Co-op. Von Doellen and the Board members agreed that if the Muenster Co-op were to simply dissolve, there was a strong likelihood that member equity would be lost.
The key consideration was that the accounting and administration fees would be borne by the new amalgamated Humboldt Co-op, reducing the financial drain on the Muenster outlet considerably. While Muenster would be subject to an administration fee, that value would be far below the current expenditure of $30,000. The end scenario with all considerations is that the outlet could once again be in the black.
With the green light from the Muenster Co-op Board and Members, all that remains is tonight’s information session and vote in Humboldt and Lanigan. Should that vote pass, the newly amalgamated Co-op, under the Humboldt Co-op banner, would begin operation with a fusion of existing board members on January 1, 2025.
Tonight’s information session, followed by the vote, will be held simultaneously at the Humboldt Legion Hall and the Lanigan Legion Hall at 7 pm.