Peninsula, Comox Valley co-ops voting on merger
Cost savings, increase in products cited as boards approve proposal
Peninsula Co-op may be adding two new gas stations next year if a plan to merge with the Comox Valley Co-op is approved by members from both organizations.
While both boards of directors have agreed in principle to the merger, Comox Valley members will vote on the proposal Nov. 30 and Peninsula members will vote Dec. 1.
The proposal, which would bring together both organizations under the Peninsula Consumer Services Co-op banner in April next year, requires a two-thirds majority to pass.
Dave Hoy, Peninsula Coop’s chief executive, said the idea of merging has been talked about for years and makes sense for both co-ops.
“We’ve heard for years so many comments from members asking ‘why can’t I use my number at that co-op, or that one on the Island,’ ” he said.
Peninsula Co-op has 15 gas centres between Sidney and Duncan, a commercial card lock and a food centre, while Comox Valley has two gas stations.
Hoy said the talk heated up after Peninsula stepped in to help manage Comox after some issues emerged a few years ago.
“Their board and staff saw the positive influence of partnering with a larger co-op,” he said.
Hoy has met with the staffs of both co-ops and does not expect there will be much of a hurdle in getting the memberships to approve. He said the move strengthens both, will result in cost savings and being able to offer a wider range of products and services.
He said there is also a chance to make a splash in the Comox Valley.
“The Comox market is underserved by the Co-op today, whereas down here Peninsula Co-op has been very successful in getting market share,” Hoy said, adding they will be investing in a marketing campaign to target the Comox Valley. “The opportunity is up there for business.”
Under the terms of the proposal, the co-ops will operate under the Peninsula Co-op name, though if there is further expansion the name may evolve to reflect a more central name.
“We expect this will be the start of more growth,” said Hoy, noting growth through acquisition follows along the trend lines established in recent years by B.C.’s credit unions.
There will be one nine-member board established, though for the first three years of the agreement there will be two directors added from Comox Valley.
Hoy said it will then revert to a nine-member board, though there will be a membership advisory committee established in Comox that will meet quarterly with Peninsula Co-op management.
Account numbers for Peninsula members will not change, but Comox Valley members will have a prefix added to theirs.