Members have been cashing their patronage refunds at the Co-op, applying them to purchases, or donating them to the Community Fund. Some members have also asked good questions about this year’s refund. That curiosity reflects a healthy interest in how our member-owned business works. 

This year, the council chose to retain a larger portion of the Co-op’s earnings than last year. Members received 35% of the patronage refund in cash, compared with 65% last year. 

At first glance, that lower percentage may seem disappointing. But the full picture is important. The size of the patronage refund depends on how profitable the Co-op was during the year. Because profits were significantly higher in FY2025, the total dollars paid out to members were actually 12% higher than last year. In other words, members received more cash overall, even though a larger portion stayed invested in the Co-op. 

Patronage refunds are one of the unique features of the cooperative model. Instead of profits going to outside shareholders, they are shared among member-owners based on their purchases. The more you shop at the Co-op, the larger your share of the earnings. 

The portion not paid out immediately is allocated to members as equity in their names—essentially member-supplied capital that helps strengthen the Co-op. 

That retained capital allows the Co-op to invest in improvements such as energy-efficient HVAC systems, upgraded kitchen equipment, and the purchase and improvement of 707 Stone Cutters Way, all without taking on bank debt. 

Because Hunger Mountain Co-op is member-owned, these decisions are made through our democratic governance system. The council—elected by members—reviews the General Manager’s recommendation each year and decides what balance best supports the Co-op’s long-term financial resilience. 

How Patronage Refunds Work in 4 Steps 

1. Members and non-members shop at the Co-op
   Throughout the year, people buy groceries and other goods.  
2. The Co-op earns a profit (hopefully!)
   At the end of the fiscal year, the Co-op determines whether it made a profit. If there is no profit, there is no patronage refund that year. If there is, the Co-op goes on to Step 3… 
3. Profits are allocated to members
   Patronage refunds are calculated: the portion of profits generated by member purchases is allocated to members based on how much each member spent during the year. Members who spend more receive a larger share. Profits generated by non-member purchases, after taxes, are invested in the Co-op. 
4. Cash is paid out, and the rest stays invested
   A portion of the refund is paid to members. The remaining portion is allocated to members as equity in their names and retained by the Co-op to help fund improvements, maintain infrastructure, and strengthen the business for the future.

Calling for Visionaries: Join Our Strategic Planning Committee 

As I’ve mentioned in previous updates, the Co-op is preparing to launch our first strategic planning exercise since 2012. This is an opportunity to define how our Co-op serves the community over the coming decades. 

To do this right, we need input from across the membership, not just the Co-op’s Board. We’ve appointed four founding members to a Strategic Planning Committee, and now they are looking for 2–5 more member-owners and staff to join them on a committee of six to nine people total. The Council prioritizes diversity and balance in this group, to make it easier to craft a plan that reflects all of us. 

Why participate? 

With the recent acquisition of land at 707 Stone Cutters Way, we have physical space to grow in ways we haven’t before. This committee will help the Co-op decide how to develop that land, as well as many other questions about our future. 

Member-owners and staff serving on this committee will receive financial compensation for their time and expertise. 

And you don’t need to be an expert in strategic planning—the committee will hire a consultant with that expertise.

What’s the commitment? 

• Time: Approximately two meetings per month for about a year, plus work outside of the meetings. 
• Focus: Helping to discover and invent our future path through facilitated workshops and discussions. Leadership in this process means listening first.  
• Application: If you are interested, please email General Manager Mary Mullally with the subject line “Strategic Planning Committee” by April 6. Mary will share a brief application form with details on the selection process. 

Even if you don’t join the committee, we’ll be hosting open forums throughout the planning process for everyone to share ideas and inspiration. But if you want to help chart our course while ensuring our plan is rooted in the shared wisdom of everyone who belongs here, we hope you’ll apply. 

Ask us anything at the next Co-op Connects on Monday, April 10, 4:00 – 5:00 pm 

General Manager Mary Mullally and I will be holding our next almost-monthly “ask us anything” Co-op Connects session on Monday, April 10, 4:00 – 5:00 pm. Please join Mary, me, and possibly another council member to chat about the past, present, or future of the Co-op—or anything else on your mind. Look for us at the Demo station.

  The Wrap 

1. What did the grape do when it was stepped on?
2. Itw(h)ined.

—Carl Etnier, Council President

Do you have any questions or comments about the council? Do you know any jokes even faintly related to food and/or co-ops? Please email them to me!