AWG Overcomes Challenges To Grow Annual Revenue
Associated Wholesale Grocers battled through various headwinds, including decreasing pharmacy sales and supply chain challenges, and finished its fiscal year with positive sales growth.
The grocery cooperative reported net sales of $11.5 billion, up 2.4%. Consolidated net sales were $12.1 billion. AWG distributed a record $286.2 million of year-end patronage.
The total distribution of cooperative benefits returned to shareholders, including interest, allowances, and patronage, was a record $642.1 million, up 6.53%. Total members’ investment and equity increased to a record $700.1 million. Additionally, the trading value for class “A” shares increased 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 Company (VMC) subsidiary departments into the cooperative,” said Dan Funk, president and chief executive officer of 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.”
Funk noted that expanded promotional program opportunities, increased member participation in vendor partners’ promotional programs, and continued investment in private brands growth significantly contributed to the 6.53% improvement in total distributions for the year.
Noteworthy developments for AWG recently include celebrating AWG Brands milestone 40-year anniversaries for Always Save in 2024 and Best Choice in 2025 with strong programming that delivered an additional $25 million in promotional support year-over-year.
AWG also completed its largest strategic project in 2024: the final phase of the VMC product migration to its All-in-One Distribution Hub in Hernando, Miss. This multi-year project has been the company’s largest capital investment, and the state-of-the-art facility enhances the company’s supply chain capabilities and ensures AWG can meet members’ needs for generations to come, company officials said.
“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,” said 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.”
