Seward Co-op Ownership Stock Increase Ballot Proposal

The 2025 Board of Directors election ballot included a proposal to change full owner equity from $75 to $99 by increasing the number of ($3) Class A Stock voting shares from twenty-five (25) to thirty-three (33).

UPDATE: The election has concluded and Seward Co-op’s owners voted in favor of approving this ballot proposal by a margin of 89%! To read more about the election results, check out the 2025 Annual Owner Meeting Recap page. As stated in the FAQ below, the stock increase won’t go into effect until January of 2026. Please look forward to more communication over the next few months.

The current $75 owner equity has not changed since it was established in 1987—the equivalent of $208 today—and is significantly lower than most other Twin Cities area co-ops. Our hope is that our owners will vote “yes” on this proposal to bring us in alignment with the current financial reality and support the long-term financial stability of the Seward Co-op.

Because we wanted to be sure everyone had an opportunity to fully understand the complicated process of increasing the value of ownership, we scheduled two Ballot Proposal Info Sessions for folks to hear from staff and the board about this change and ask questions on August 12 and September 18.

Why is this change being proposed?

This stock increase proposal is part of several moves we’ve made in the last two years following a comprehensive expense audit to improve our financial position. We assessed things at every level, from the big picture of selling the Creamery building all the way down to fine-tuning promotions and shelf layouts. These changes have made a significant positive impact on the co-op’s finances.

Looking back on the full fiscal year from July 1, 2024 to June 30, 2025 shows a +4.7% sales growth and almost $2 million more in sales volume, but there are still challenges ahead. In the near future, we have a large step-up in our pay scale and need to make capital investments at both stores. We are in tumultuous times and it is crucial that we solidify our foundation for what’s to come. With over 17,000 active owner households, an increase to the value of ownership could raise as much as $500,000 in additional capital for the co-op and would positively contribute with every new owner for the foreseeable future.

When will the increase go into effect?

The ownership increase would go into effect January, 2026.

I am already an owner. Will I need to pay the remaining $24 to make my ownership “paid in full”?

All owners will be required to pay the remaining $24 to make them “paid in full.” This can be done as a $24 one-time payment at any time, or they can be paid off through future patronage refunds during profitable years.

If no payment is made by June 30, 2026 (the end of our fiscal year), the co-op will assume you are opting to earn the remainder of your ownership through future patronage refunds. This ensures that no owner will lose their owner benefits.

How will this change impact needs-based ownerships? Will this change limit access to ownership at the co-op? How will it affect the payment schedule?

The needs-based ownership and ownership benefits will not change. Eligible new owners will still pay a $15 initial equity investment, with the remaining $84 being paid off through future patronage refunds. Owners with an existing needs-based ownership will continue as normal, with patronage refunds being put toward the cost of ownership until $99 is reached. Owners on the needs-based payment plan also always have the option to pay for the remainder of their ownership all at once at either store.

What about the installment payment plan option for ownership? How will it affect the payment schedule?

The installment payment option will change so that new installment ownerships pay an initial equity investment of $33 (11 shares), then two more payments of $33.

Existing, fully paid installment ownerships will be in the same position as regular paid-in-full ownerships. Existing, unfinished installment ownerships will be expected to pay the full equity agreed on at the time of signing up for the ownership ($75), and once completed will have the same option to pay the additional $24 or have it be paid via future patronage refunds.

What about staff ownership?

Seward Co-op staff will still earn a paid-in-full ownership after 1000 hours of employment. The $24 difference for current Seward staff owners will be covered by Seward Co-op

When is the Board of Directors election? When will the results be announced?

The election ran from Sept. 29 – Oct. 26 and the results were announced at our Annual Owner Meeting on Monday, Oct. 27 at Arbeiter Brewing.

I have further questions or feedback about this process or my circumstances.

You can contact us online at https://seward.coop/contact-us with any questions you have or send an email to board@seward.coop.

Seward Community Co-op