Last updated on September 19th, 2022
Kansas City-based Associated Wholesale Grocers Inc. reported record consolidated company sales of $10.8 billion, an increase of 1.68 percent on a comparable basis over 2020 and distributed $247 million in year-end patronage, following the AWG Annual Shareholders Meeting on March 21.
AWG’s cooperative sales were $9.8 billion, up 1.39 percent. The total distribution of cooperative benefits returned to shareholders, including interest, allowances and patronage was $572.3 million. Total members’ equity ended the year valued at $616.2 million.
Additionally, due to solid performance in subsidiary companies and gains derived from the divestiture of surplus real estate, the trading value of AWG stock increased to $1,440 per share, an increase of 20 percent.
“Remarkably, we achieved these results while overcoming record expense escalations, supply chain infrastructure investments, upgrades to our technology platform for the future, and funding our ambitious convergence project to align the cooperative with our member-retailers so we can perform more like a $23 billion retailer,” said David Smith, president and CEO. “We continually strive to achieve the right balance of investing wisely in the long term and fulfilling our member-retailer’s day-to-day needs for a lower cost of goods and a predictable patronage return.”
AWG exceeded budgeted investments by $15 million in cooperative-funded national and store brand product price reductions to support aggressive promotions as vendor trade allowances declined due to product shortages. The company also invested $3 million to facilitate improvements necessary for a more sustainable supply chain less vulnerable to shortages of products, employees and future catastrophic events.
“While 2021 was a difficult year for many, including our member-retailers, we focused on keeping teammates safe, supporting our members with the best available product supply, and battling daily on their behalf to obtain their fair share of product and best available cost from supply partners,” Smith said. “All of our companies faced unprecedented teammate turnover and industry-wide personnel shortages. For all those efforts and achievements in the face of adversity, we could not be prouder of our member-retailers, teammates, and those who showed us great patience and grace and helped us as we helped others.”
Barry Queen, AWG’s chairman of the board, stated “I’m proud to be a part of this cooperative and proud to see the continued strong results that we can deliver for the benefit of our member-retailers. It gives my family and me the confidence that we’re ready for whatever comes our way and continue investing and growing. There is true strength in numbers and AWG’s numbers continue to grow stronger and stronger.”
Associated Wholesale Grocers, Inc. is the nation’s largest cooperative food wholesaler to independently-owned supermarkets, serving over 1,100 member companies and over 3,200 locations throughout 28 states from nine wholesale divisions. The consolidated sales for AWG are $10.8 billion.
In addition to its cooperative wholesale operations, the company also operates subsidiary companies including real estate and supermarket development services, print and digital marketing services, health and beauty care, general merchandise, pharmaceutical products, specialty foods, and natural and organic products.
For more information, visit AWGinc.com.
