Members of Central Alberta Co-op Ltd. can expect $2.9 million in their mailboxes next month.
The money represents the cash portion of the Co-op’s 2012 patronage allocation, which totalled $6.2 million.
The $3.3 million difference will be retained in members’ equity accounts.
Central Alberta Co-op came into existence on Feb. 1. It resulted from the merger of Red Deer Co-op, which operated in Red Deer, Lacombe, Stettler and Elnora; and Central Alberta Co-op, which had operations in Innisfail and Spruce View.
There will be no annual meeting for the two co-ops, because they’ve ceased to exist, and the new Co-op won’t require one until after its first year of operation, said general manager Larry Parks.
However, an information meeting took place Wednesday evening in Red Deer.
Parks said the two member-owned retail organizations combined to generate $221.2 million in sales last year, which translated into net earnings of $10.9 million.
That included receipts from Federated Co-operatives Ltd., which both the former Red Deer and Central Alberta co-ops were members of and earned patronage refunds from.
Earnings from the sale of fuel and crop inputs like fertilizer and chemicals very strong last year, said Parks.
Meanwhile, revenues from grocery stores, and home and garden centres, were both up slightly.
Patronage allocations to members were calculated on the basis of 1.94 per cent of sales in the case of food and pharmacy products, 5.9 per cent on fuel sales, one per cent in the case of home and garden centre sales, two per cent on sales of agro products, and six per cent on oil and grease sales.
Parks said the merger resulted in some one-time expenses and write-offs, but generally has gone well.
“From the customer side, we haven’t heard a whole lot of negativity at all.”
Red Deer Co-op operated two grocery stores, two gas bars, two liquor stores, a home and garden centre and a bulk fuel station in Red Deer; a grocery store, a gas bar, a liquor store, a bulk fuel and cardlock station in Lacombe; a gas bar and cardlock and bulk fuel station in Stettler; and a cardlock station in Elnora.
The former Central Alberta Co-op had a grocery store, home and agro centre, gas bar, cardlock and bulk petroleum station, and a fertilizer supply facility in Innisfail; and a grocery store, home centre, gas bar and cardlock station in Spruce View.
The new Co-op has more than 65,000 members, said Parks, and increased resources that should allow it to be more aggressive in its growth plans.
Projects planned for 2013 include a liquor store in Stettler and a cardlock fuel station near Castor, both of which could be completed by fall.
“We have all kinds of plans for the next two or three years,” added Parks, listing a gas bar in Blackfalds and a cardlock in Red Deer as among these.
One of the projects completed last year was redevelopment of the Co-op’s gas bar and convenience store at Deer Park Shopping Centre. The resulting disruption in service hurt sales, said Parks, but customers are coming back.
“Right now we’re running about the same volume that it was before.”
hrichards@www.reddeeradvocate.com