Own Brands Growth Among The Highlights For AWG In 2023
Associated Wholesale Grocers enjoyed a strong year in 2023 as the company reported record consolidated company sales along with growth in AWG cooperative net sales.
The company reported consolidated company sales of $12.4 billion, an increase of 0.8%. AWG cooperative net sales were up 3.16% to $11.1 billion. The total distribution of cooperative benefits returned to shareholders, including interest, allowances, and patronage, was $602.8 million, up 10.88%. Total members’ investment and equity declined to $655.8 million, reflecting strategic start-up costs. Additionally, the trading value for class “A” shares increased to $1,610 per share, an increase of 3.9%.
“We achieved these remarkable results through continuous improvements in our division operating results, efficiency, and productivity initiatives,” said Dan Funk, president and chief executive officer of AWG. “Despite ongoing inflationary pressures on operating expenses, our unwavering focus on year-over-year cooperative sales growth, both with new and existing members, has yielded positive outcomes. Strategic investments under the Convergence initiative in merchandising, marketing and promotional funding enhancements have significantly contributed to the remarkable 10.88% improvement in total distributions for the year.”
Among the noteworthy developments at AWG over the past year include its comprehensive relaunch of the AWG Brands portfolio, introduction of new label designs, new product offerings, and ongoing AWG Brands investments aimed at solidifying the cooperative’s position as the largest brand within the markets its members serve.
Throughout 2023 AWG also launched multiple strategic projects including the inauguration of the new All-In-One Distribution Center in its Mid-South Division in Hernando, Miss. The first phase of consolidating Valu Merchandisers Company (VMC) products and departments into the Mid-South Division commenced in 2023.
The integration of VMC products into the cooperative for members’ stores will commence in phases during fiscal 2024. Furthermore, the new Upper Midwest Division in St. Cloud, Minn., created needed new capacity within the total distribution network and continues to be a growth opportunity for the cooperative.
