President's Message
The Board appreciates your attendance at this Annual General Meeting of the Red Deer Co-op Limited. We look forward to your comments and questions during the discussion period.
Our Co-op achieved outstanding results in 2007. New records were set for annual sales and net savings. Management reports will clarify in detail the Co-op’s financial position.
Our commitment to the communities and people we serve continued in 2007. Once again, our Co-op contributed over $90,000 to community groups, charities, service clubs and special events throughout our trading area. Recognition is not our only motivation for giving. However, whenever possible, we do make contributions in conjunction with special events and fund-raising activities to raise awareness of our business. We’re very proud of the leadership role our Co-op takes in community-building. For 2008 - 2009, we have budgeted a similar amount for member and community relations.
The Board met for 11 regular evening meetings this past year and 1 special meeting. Regular meeting agendas included operational updates from the General Manager, consideration of management proposals, member equity matters and reviews of other programs. At the special meeting in September, we reviewed the Business Plan for 2008. The Member and Community Relations Committee met twice in the past year to evaluate activities and budgets. Directors also attended Co-op System meetings in Calgary and Saskatoon and training courses during the year to improve their knowledge and skills.
Federated Co-ops Ltd. is owned by retail Co-ops across Western Canada. FCL provides wholesale services to those Co-ops through the Co-op Refinery complex in Regina, a lumber mill and plywood plant in British Columbia, feed mills in seven locations and warehouse facilities in Saskatoon, Winnipeg, Calgary and Edmonton. In 2007, FCL achieved sales of $5.8 billion and net savings of $659 million. Our Co-op’s investment in FCL shares is $6.1 million.
Our facilities and equipment project a strong public image for the
Co-op. Our goal is to maintain and upgrade our assets so that our members continue to be proud owners. Over the years, we have developed a planning process that addresses renovations, replacement of vehicles and equipment as well as consideration of new facilities. Each year, the capital budget is set after a review of needs, costs and feasibility. For many years now, capital asset purchases have been completed without long-term financing. The recently completed Taylor Gas Bar has a small interest-free loan provided by Federated Co-op, which will be paid off in less than two years.
The past success and future growth of our Co-op depends to a great degree on the competence and enthusiasm of our employees. Our management team continues to show a strong determination to make our Co-op better every year. The Board is proud of what they have achieved and confident that they will continue to get positive results.
We as a Co-op are also continuously looking at new opportunities. Last year, we opened our gas bar on Taylor Drive. Now, we are in the process of developing a card lock in Lacombe. We are also looking at several other exciting opportunities / locations in Central Alberta.
Red Deer Co-op has much to offer - quality products, personalized service, community building and equity-cashback. We are pleased with the Co-op’s progress in 2007 and the positive outlook for 2008. We thank you for your contribution to that success and we look forward to your feedback.
Jim Dick
President
