鈥淥ur co-ops will become better together.鈥�
Borderland Co-op rolled out to members a proposed partnership with Hometown Co-op. Co-ops were built on the concept of working together and this partnership is sure to make for a stronger, united co-op committed to serving their communities better. That founding principle remains at the heart of this partnership as both co-ops share a vision to offer value, enhance growth, and maintain relevance for current and next generation members.
With 218 employees and 7,800 members, Borderland Co-op has locations in Moosomin, Rocanville, Maryfield and Whitewood.
Hometown Co-op has 86 employees and 5,200 members, and serves the communities of Kipling, Grenfell, Sintaluta and Broadview.
Jason Schenn, CEO of Borderland and GM of Hometown shares his views about the merger.
鈥淏orderland has always focused on being a strong and stable rural cooperative which has been extended to Hometown through the management agreement. The pandemic has proven that when communities support their local businesses, they can be sustainable for the long term. Our continuing mission is to strive to earn our members support so that rural communities we serve can continue to provide essential services long into the future. A shared future between Borderland and Hometown adds to that strength and creates more opportunities to contribute to what makes rural communities so special.鈥�
The decision to merge has been in the works for quite some time.
鈥淵es, when you get into the management agreements, they鈥檙e not specifically designed to do that but a lot of times it ends up that way because if retails do get along well there鈥檚 a lot of benefits of two retails being together to buy product among other things. It adds more stability, adds more structure, brings more expertise to the table and leadership. It also lets us be more competitive in the marketplace. We hope this will help keep rural branches stay alive.鈥�
鈥淟ooking at a volume perspective, Borderland is twice as large as Hometown Co-op, in terms of dollar volumes. We鈥檙e fairly diverse in the commodities that we serve and we probably have a higher level of leadership.
Borderland鈥檚 overage policy for equity is 66 whereas Hometown鈥檚 is 70 before members can apply for their equity out. Hometown has a $15,000 equity cap, so once you reach that amount, anything over and above that each year is paid out 100 per cent in cash. In Borderland鈥檚 case, ours is $10,000. There鈥檚 probably about 40 or 50 members within Hometown scattered all over various communities that are at a $15,000 cap so they would see a $5,000 cheque day one.鈥�
鈥淭he board has elected to stay with the name Borderland Co-op if the two should merge simply due to brand recognition and cost of renaming. Borderland as a name has been in use since 1973 with significant investment in branding across many communities over the years. The cost to convert all brand assets would be around $170,000. To rebrand Hometown assets alone would only be $38,000. It was decided that the money would be better put to use investing in projects and initiatives that make a tangible difference in our communities.鈥�
Lawrence Swanson, president of the Hometown board, explains the strength the partnership will achieve saying, 鈥淚 see endless opportunities ahead for this new partnership. Stability, opportunities for growth and efficiencies in all commodities that will make the member experience stronger and more rewarding across all communities we serve.鈥�
Rob Hill, president of the Borderland board, added to this saying, 鈥淭he decision to amalgamate will ensure a strong, vibrant and innovative co-op exists in our rural communities. Both co-ops complement each other very well.鈥�
By partnering together, the united Co-op will be more resilient to increasing competition and will have more resources and talent to pool together in order to innovate.
Darren Ottenbreit, Home and Agro Ops director, explains, 鈥淗aving come from Hometown and now being part of the leadership team for both co-ops, I believe there is significant value in the common goal we share 鈥� building a strong and stable rural co-op that can constantly evolve to meet the needs of our members in the communities we serve. Unifying our co-ops will provide efficiencies in operations, more expertise to better develop our people and ultimately, a better shopping experience for members of both co-ops, which will earn local support and keep our locations viable for the long term.鈥�
All current and future members will benefit from the amalgamation in a number of ways.
When you're a member, you're an owner. Borderland Co-op and Hometown Co-op would like to invite member-owners to join them on June 7 (Hometown) and June 8 (Borderland), for their annual general meeting, which will include a member information session and vote on the proposed merger resolution. The meeting will begin at 6:30 p.m.
As COVID-19 restrictions may impact how this meeting is delivered, please watch for specific details on posters at all locations, follow their social media and watch for announcements in the weeks leading up to the meeting.
Once the membership votes are in and if it鈥檚 two-thirds majority then the proposed starting date of the new co-op will be Oct. 10, when both co-ops will operate as Borderland.
The over 13,000 members of the united Co-op, which will continue as Borderland Co-op, would be able to use one co-op number in eight communities and at over 19 different locations (and growing).聽
