Manager's Report
Dear Community,
In the midst of all the uncertainty this year, it seems that time keeps marching on! Here we are in the middle of summer and our local farmers are starting to bring in all of the produce we know & love. We’ve got peas from Stornetta Ranch, apples from Green Gorge Farm, and a wide variety of deliciousness from Oz Farm and Nature’s Tune Farm.
As you’ve likely seen, here at the co-op we are still working hard to keep the store safe and fully stocked for the community. We have our new generator fully up and running, ready to power the whole store in the case that power is shut off in the area over the next few months.
As always, feel free to reach out to me if you have any questions or concerns.
Best,
Lee Farmer, General Manager
Co-op Putting COVID-19 Loans to Good Use
Due to the COVID-19 disaster, the co-op qualified for and received federal loans that helped us keep staff employed, recover from lost income, and set us up for success in the future.
As we reported in previous newsletters, the Paycheck Protection Program (PPP) loan of $60,100 paid for eight weeks of payroll, rent, and utilities. We have been able to stay well staffed and even provide some hazard pay for the increased effort and stress of dealing with the requirements of COVID-19 health orders for essential businesses. Having used the PPP funds appropriately, we expect the loan amount to be fully forgiven so we can eliminate that repayment obligation.
The co-op also qualified for and received a substantial economic injury disaster loan (EIDL) of $150,000. As of the end of July, we have spent all of these funds on the allowed operational costs, including vendor payments, payroll, rent, and utilities. With the resulting extra cash from sales, we have significantly reduced our higher-interest long-term debt and become current on all vendor debt. Because the EIDL terms are more favorable, our monthly payments for our loans remain the same as before.
In addition, we’ve committed funds to replace some key refrigeration equipment and renovate the cafe. The co-op has a substantial reserve to operate smoothly over next winter's doldrums, and we still have unallocated funds to implement ideas from the strategic planning effort now underway.
This infusion of working capital has enabled the co-op to dig out of a financial hole that began with the PG&E shutoff last October and continued through the winter slowdown and the early months of the COVID-19 restrictions. Encouragingly, sales have been consistently well above break-even since Memorial Day, including some record-setting days in July. We are better positioned financially than we have been in the three years since the local economy started shifting.
We want to acknowledge the skillful collaboration that has made all of this possible. Rick Beach, our volunteer treasurer, has spent countless hours over the last four and a half months to secure these loans. He and the store’s management team, Lee Farmer and Natalie Cortese, as well as our bookkeeper, Amy Soderman, worked together to understand the requirements to create and implement many new processes and procedures. Rick also partnered closely with numerous agencies and advisors, including Redwood Credit Union, Economic Development Financing Corporation of Mendocino County, West Center, and NorCal Small Business Development Center.
It has been a tremendous undertaking, and we are grateful now to be in such a solid situation to continue serving our members and the community. We are also grateful to everyone who is shopping locally and helping to rebuild our economy. And of course we could not do any of this without our loyal staff, who are working hard in these stressful times to keep the co-op humming seven days a week.
Board of Directors
Coastal Organics Cooperative, Inc.
New Items
Brittanie's Thyme Natural Hand Sanitizer 2 OZ. $5.09
Ener-C Vitamin C packets 30 CT $17.95
Teavana Blueberry Mint Unsweetened Iced Tea 12 OZ. $2.89
Suzie's Organic Buffalo Wing Sauce 12 OZ. $4.49
Santa Cruz Mango Lemonade 32 OZ. $2.49 ($1.00 off)
Premier Japan Organic Hoisin Sauce 12 OZ. $7.69
Chocolove Sugar-Free Fruit & Nut Milk Chocolate Bar 3.2 OZ. $5.19
Me & The Bees Lemonade 12 OZ. $3.79
Inner-Eco Coconut Water kefir Gut Shots 15 OZ. $19.99
Luke's Organic Ketchup Chips 4 OZ. $4.79
Pazzo Marco Creamery Cheeses (from Gualala!)
Sale Items
Mary's Gone Crackers 5.5 OZ $4.79 ($1.80 off)
Eden Hot Pepper Sesame Oil 5 OZ. $8.89 ($1.50 off)
Daiya Jalapeño Havarti Cheese 7.1 OZ. $2.96 ($1.00 off)
Miyoko's Oat Milk Butter 12 OZ. $5.69 (.70 off)
Pesavore Ahi Tuna Jerky Smoked Poké 1.5 OZ $4.39 ($1.00 off)
Lightlife Tempeh 8 OZ. $ 3.69 ($.60 off)
Gardein Crispy Orange Chicken 10.5 OZ. $4.98 ($1.31 off)
Co-op Annual Member Meeting
Beefy, saucy, and with a touch of heat—this is your new favorite summer veggie burger.
