Associated Wholesale Grocers Logs Record Results at Annual Shareholders Meeting
At its annual shareholders meeting late last month, Associated Wholesale Grocers Inc. (AWG) revealed net sales for the cooperative of $11.5 billion, an increase of 2.41%, and consolidated company sales of $12.1 billion. Additionally, AWG distributed a record $286.2 million of year-end patronage immediately after the event.
The total distribution of cooperative benefits returned to shareholders, including interest, allowances and patronage, was a record $642.1 million, an increase of 6.53%, and total members’ investment and equity rose to a record $700.1 million. Further, the trading value for class “A” shares grew to $1,650 per share, an increase of 2.5%.
“We achieved these results through implementation of multiple strategic initiatives, improved operational performance and completing the integration of the Valu Merchandisers Co. (VMC) subsidiary departments into the cooperative,” explained Dan Funk, president and CEO of Kansas City, Kan.-based AWG. “Despite headwinds such as pressure on unit volumes, decreased pharmacy sales and ongoing supply chain disruptions in key product categories, we delivered exceptional results for our members. Expanded promotional program opportunities, increased member participation in vendor partners’ promotional programs and continued investment in private-brand growth have significantly contributed to the remarkable 6.53% improvement in total distributions for the year.”
Among the co-op’s standout developments were marking the 40th anniversaries of its Always Save brand in 2024 and its Best Choice brand in 2025 with robust programming that added another $25 million in promotional support year over year. In 2024, AWG also wrapped up its largest strategic project: the final phase of the VMC product migration to an all-in-one distribution hub in Hernando, Miss. The multi-year project is the single largest capital investment the company has ever made, and the cutting-edge facility was designed to boost the company’s supply chain capabilities and ensure that AWG can meet members’ needs far into the future.
“I’m proud to be a part of this cooperative and proud to see the continued fine results that we can deliver for the benefit of our member retailers,” noted Barry Queen, AWG’s chairman of the board. “While the cooperative and our members faced several challenges to sales growth in 2024, AWG and the overall membership are in a strong position to accomplish much more as we continue to seize opportunities together. I’m very excited about our plans for 2025 and can’t wait to see what we can achieve.”
AWG is the nation’s largest cooperative food wholesaler to independently owned supermarkets, serving 1,100 member companies and more than 3,400 locations throughout 33 states from nine wholesale divisions. Consolidated sales for AWG in 2024 exceeded $12.0 billion. In addition to its cooperative wholesale operations, the company also operates subsidiary companies that provide certain real estate and supermarket development services, and pharmaceutical products.
