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Year Summary
2003-2004
Enthusiasm, change, and accomplishment – these three words sum up the
year 2003/2004.
The year began with a fresh new look for many of the Basics, Conventional and
Country Stores. New banners were displayed and several conventional co-ops
were converted to the Market Store banner.
The non-co-op independent banners - ValuFoods (supermarkets) and Rite Stop
(convenience stores) both achieved exciting sales growth. By the end of 2003,
bannered retails numbered 22 with a total of 12 Rite Stop convenience stores
and 10 ValuFoods grocery stores.
The petroleum department through Co-op Fuels
Ltd. grew, adding a bulk fuel branch in Shippagan, NB, undertaking the retail
operations of the gas bar in Glace Bay and the Gas bar and home hear
operation in Lawrecetown, NS.
In real estate,
Avide Developments Inc.,
an integrated property development company, was launched. Avide is the
amalgamation of CA Design-Build Group, Atlantic Peoples’ Housing Ltd. and the
CA Real Estate Department. It provides land and project development,
equipment procurement, design & engineering, construction management,
design-build services and long-term property management. The development and
management of co-operative and non-profit housing is a focus.
2003/2004 was also the year Co-op Atlantic
launched its Co-op agri-food strategy, a critical point of differentiation
for Co-op Atlantic in the years ahead. The agri-food strategy is simply our
relationship with the Atlantic Canadian agricultural community. We partner
with Atlantic Canadians in reciprocal business ventures to produce the best
local products. We stake our name on their products and they enjoy the
security of a buyer. In fact, all divisions at Co-op Atlantic are committed
to pursuing programs and promotions tied to the Agri-Food strategy. For
example, in the food division, steps were taken to purchase frozen dough from
a bakery jointly owned with the co-operatives on the Magdalen Islands, which
helped strengthen our commitment to support locally owned businesses and agri-food
partners throughout the region.
Other achievements this year include
improving the overall petroleum litre volume, introducing the new community
co-op credit card and opening new pharmacies under the licensed Medicine
Shoppe agreement. Now there are 7 Medicine Shoppe locations in Atlantic
Canada.
On a sad note, it was during 2003 that we
were forced to participate in the closure of several Co-op retail locations.
In the end, it proved to be the right business decision and made Co-op
Atlantic stronger moving forward.
Another challenge was the upheaval for
agriculture in Atlantic Canada as it was for the rest of the country. The
outbreak of BSE and subsequent trade restrictions changed our beef industry
forever. Similarly, the region’s hog producers experienced one of the
toughest years in history with depressed pricing and ongoing challenges to
supply their traditional export markets.
Despite these market conditions, the
agriculture division generated positive financial results and accomplished
many goals. Construction began and finished on the producer-owned Atlantic
Tender Beef Inc. plant in Borden-Carleton, PEI allowing Co-op Atlantic to
have a consistent supply of high-quality beef products for the Atlantic
Tender Beef program. The agriculture division became the main dealer for
Cover-All buildings in Atlantic Canada. Valley Fertilizers introduced a new
line of cat litter products and upgraded their plant to increase co-packing
capabilities for other manufacturers. Finally, Country Stores introduced a
small format Country Store with its first outlet in Montague, PEI.
Overall in 2003/2004 Co-op Atlantic
accomplished a great deal, overcame several challenges and made many positive
changes allowing it to broaden its focus and look towards the future with
enthusiasm.
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