years60Celebrating

“PUGET CONSUMERS

CO-OP SEEKS TO

ADVANCE THE

ECONOMIC WELFARE

OF SOCIETY, THROUGH

MEETING THE

CONSUMER NEEDS

OF ITS MEMBERS

MORE EFFICIENTLY

AND HUMANELY, AND

THROUGH SERVING

AS A YARDSTICK OF

HONESTY, COSTS AND

HUMAN RELATIONS IN

ITS FIELD.”

Bylaws – Preamble, Puget

Consumers Co-op, December 1960

THEN AND NOW:

From small to spectacular,

PCC has grown to 10 stores

offering the best in fresh,

local and organic choices.

2 0 1 3 A N N U A L R E P O R T

NE 65th St. Store (1969)

Greenlake Village Store (2014)

Randy Lee

Chief Financial Officer

Over the past six decades, PCC has evolved into the nation’s largest consumer-owned and

operated natural foods retailer. At year-end, sales at our nine stores topped $200 million, and

we had more than 52,000 members and 1,100 employees. These numbers show where we are

today; a look back shows how far we’ve come.

In the 1950s, economy-minded households formed buying clubs to qualify for wholesale prices

on bulk food purchases. In 1953, a club was started to serve residents of the Seattle Co-op

Housing Association. Operated by John and Ruth Affolter out of their home in southeast Seattle,

the club moved with them in 1957 to the May Valley Co-op Community in Renton, Washington.

In late 1960, 15 families agreed to organize the Renton club as a cooperative, each investing

one dollar. The new entity — Puget Consumers Co-op — opened for business in February 1961.

A member bulletin, precursor of the Sound Consumer, was started to inform members about

co-op news and products, and consumer issues. Sales in PCC’s first year were just over $5,000.

During PCC’s early years, members could buy bulk food, automotive supplies and even insurance

services. Product inventory was maintained at the “Depot,” the Affolters’ basement. Phoned-

in orders were picked up at home-based stations throughout the greater Seattle area. Finally,

PCC opened a storefront in 1967 in Seattle’s Madrona neighborhood. A real store, with regular

shopping hours, brought about new members, products, pricing policies, and a big question: In

what ways should PCC grow?

The answer, over time, was a careful expansion of PCC locations, following a path of sustainable

practices and products. Despite a full share of growing pains, PCC has stayed true to the spirit

and intent of our original bylaws, responding to member interests, advocating for consumers,

supporting the communities we serve and providing a welcoming shopping experience for all.

PCC’s priorities have not changed, even as we’ve grown. Our commitment to high product

standards, excellent customer service, attractive and efficiently operated stores, and substantial

investment in consumer education and community outreach programs has made it possible for

us to conclude 60 years in business on solid financial ground. Last year, this included a 12

percent increase in sales, along with a 9.3 percent increase in member discount benefits.

Many factors have supported PCC’s growth and success over our long history, but the

cornerstone of our co-op has always been our members. Thank you for your continuing

membership and support. Together, we have every reason to look forward to the next 60 years.

FROM THE MANAGEMENT TEAM

PCC FARMLAND TRUST

Nationally accredited by the Land Trust Alliance, PCC Farmland

Trust is dedicated to the critical work of conserving organic

farmlands in Washington State. At year-end, the Trust had saved

nine farm properties, totaling 1,264 acres that support 13 organic

farms. The Trust was founded by PCC Natural Markets in 1999.

PCC remains a major contributor but the Trust operates as an

independent 501c(3) nonprofit.

PCC FOOD BANK PROGRAM

PCC’s oldest community outreach program reached a new level of

shopper and volunteer support in 2013. Almost $83,000 in shopper

donations were used to purchase 36 tons of nutritious bulk food that

were repackaged by more than 700 volunteers for distribution to ten

partner food banks. Plans were made to welcome a new partner —

North Helpline Foodbank, in Seattle’s Lake City neighborhood — in

early 2014.

PCC COOKS

This internationally-recognized program has offered “Fun Classes,

Fresh Ideas” for more than 30 years. In 2013, almost 17,000

students learned how to use and enjoy PCC products in more

than 1,200 classes on topics ranging from basic kitchen skills to

international gourmet meals. Classes and vacation day camps, just

for kids, were attended by more than 2,250 future chefs.

PCC KID PICKS

Since 2004, this program has invited children age 12 and younger to

sample and vote on PCC products. As of year-end 2013, almost 3,000

PCC products were Kid Picks-approved. The program hosted 91 local

events last year, offering general product sampling, Kid Picks Fresh,

which focuses only on fresh produce, and opportunities for kids to

make their own trail, pancake and soup mixes from bulk food options.

PCC SCRIP PARTNERS

This program makes it easy for PCC customers to help local schools

and nonprofits earn money just by shopping at PCC. Each time money

is applied to a PCC scrip card, the community partner tied to the card

earns 5 percent of the amount. In 2013, more than 200 PCC scrip

partners earned more than $250,000.

As our cooperative celebrates 60 years, your board

of trustees is looking ahead to how we can keep PCC

successfully fulfilling its mission in the next 60 years.

Toward that end, your board spent much of its 2013 retreat

on the topic of healthy growth. We explored many facets

of PCC’s growth, including number of members served,

organic farmers supported, jobs provided and community

efforts enriched. And of course, throughout the year, we

learned a lot about GMOs. We also learned how committed

our members are to the cause of labeling, a cause we will

continue to support.

Your board also took steps to grow our relationships

with community partners. In May, we toured Jubilee Farms,

an organic farm now supported by the PCC Farmland Trust.

In October, the board met with board members and staff

of Seattle Tilth and toured three of their urban farms and

teaching locations. This truly inspiring group shares PCC’s

values and passes them on to new generations of farmers,

cooks and teachers. I urge you to check out the websites of

these two unique and very successful organizations.

In June, several board members attended the Consumer

Cooperative Management Association’s annual conference

to learn and share ideas with other cooperatives from

around the country. Carol Binder, trustee, travelled to

Senegal, Africa with the National Cooperative Business

Association as a volunteer to teach business and

cooperative principles to newly formed, women-owned

cooperatives there.

PCC’s 60 years of success has allowed us to do so much

to further our cooperative, environmental and community

ideals. All of this is made possible by the support of

our members and patrons. Thank you, and be assured that

your board of trustees will continue, on your behalf, to work

hard toward continued success for the next 60 years.

Maggie Lucas

Chair, PCC Board of Trustees

FROM THE BOARD

LOCATIONS

Edmonds: 9803 Edmonds Way, Edmonds

Fremont: 600 N. 34th St., Seattle

Greenlake Aurora: 7504 Aurora Ave. N., Seattle

Greenlake Village: 450 N.E. 71st St., Seattle

Issaquah: 1810 12th Ave. N.W., Issaquah

Kirkland: 10718 N.E. 68th St., Kirkland

Redmond: 11435 Avondale Rd. N.E., Redmond

Seward Park: 5041 Wilson Ave. S., Seattle

View Ridge: 6514 40th Ave. N.E., Seattle

West Seattle: 2749 California Ave. S.W., Seattle

Co-op Office: 4201 Roosevelt Way N.E., Seattle

PCCNATURALMARKETS.COM

BOARD OF TRUSTEES

Carol Binder, Taso Lagos, Julianne Lamsek, Maggie Lucas, Karen May, John Sheller, Stephen Tan, Sandy Volt, Bruce Williams

Chief Executive Officer: Tracy Wolpert

Chief Financial Officer: Randy Lee

Board Administrator: Janice Parker

“THE CO-OP IS HEADED IN

THE DIRECTION OF GOOD,

WHOLESOME, HEALTH-

ORIENTED FOODS. WE

ARE TRYING TO CUT OUT

UNNATURAL, CHEMICAL-

STUFFED FOOD PRODUCTS

AND CUT DOWN ON

ECOLOGICAL POLLUTANTS.

IT’S TIME WE BECOME MORE

CONCERNED ABOUT WHAT

GOES INTO OUR MOUTHS.”

PCC Newsletter, February 1961

CONSOLIDATED INCOME STATEMENT

2013 2012 2011Sales 200,578,108 179,058,293 161,118,509

Cost of Sales 122,188,423 107,876,096 97,494,334

Gross Profit 78,389,685 71,182,197 63,624,175

% of Sales 39.08% 39.75% 39.49%

Operating Expenses

Staff Wages, Benefits, & Taxes 52,823,092 49,307,057 43,117,171

Gen’l Administrative & Occupancy 17,636,455 16,520,197 15,554,476

Outreach Expense 1,638,166 1,880,695 1,856,907

Total Expenses 72,097,713 67,707,949 60,528,554

Income (Loss) from Operations 6,291,972 3,474,248 3,095,621

Other Income (Expense) Other Misc Income (Expense) 391,096 360,779 401,137

Interest & Other Expenses 26,719 37,465 20,716

Gain (Loss) on Disposal of Assets (34,568) (131,990) (78,079)

Income before Fed Income Tax 6,675,219 3,740,502 3,439,395

Fed Inc Tax Provision (Benefit) 2,336,522 1,267,908 1,171,150

Net Income (Loss) 4,338,697 2,472,594 2,268,245

2.16% 1.38% 1.41%

CONSOLIDATED BALANCE SHEET

2013 2012 2011

ASSETS

Cash & Equivalents 22,730,865 17,531,954 14,975,092

Receivables 1,014,716 878,523 917,623

Inventory 5,734,311 5,470,500 4,950,637

All Other Current 1,608,038 1,975,303 1,526,163

Total Current Assets 31,087,930 25,856,280 22,369,515

Fixed Assets (net) 25,371,736 25,456,815 25,483,047

All Other Non-Current 942,827 810,001 731,015

Total Assets 57,402,493 52,123,096 48,583,577

L IAB IL IT IES

Current Maturity Long Term Debt - -

Accounts Payable 7,634,369 6,910,824 6,192,153

Accrued Expenses 4,915,693 4,524,157 3,912,582

Other Current Liabilities 699,490 625,612 642,961

Total Current Liabilities 13,249,552 12,060,593 10,747,696

Long Term Debt - -

All Other Non-Current 6,287,189 6,766,366 7,215,545

Total Long Term Liabilities 6,287,189 6,766,366 7,215,545

Total Liabilities 19,536,741 18,826,959 17,963,241

NET WORTH Membership Certificates 7,024,152 6,793,234 6,590,027

Retained Earnings 26,502,903 24,030,309 21,762,064

Net Earnings 4,338,697 2,472,594 2,268,245

Total Net Worth 37,865,752 33,296,137 30,620,336

Total Liabilities & Net Worth 57,402,493 52,123,096 48,583,577

2013 FINANCIAL STATEMENT

042014