Associated Wholesale Grocers used its 100th anniversary to press suppliers, brokers and retail partners to treat independent grocers as one of the industry’s largest retail networks, delivering the message at the 10th annual AWG Crossmark Summit in Kansas City.
The Kansas City, Kansas-based cooperative, the nation’s largest retailer-owned grocery wholesaler, serves about 1,100 member companies operating roughly 3,500 stores in 33 states, representing an estimated $24.5 billion in retail sales. AWG leaders argued that collective scale is often overlooked when suppliers decide where to direct product innovation, promotional spending and merchandising support.
“Our purpose is really to help feed America by strengthening Main Street,” said Dan Funk, president and CEO at AWG. “Don’t leave the independent behind.”
Jami McDermid, president of Crossmark, told attendees that AWG is a substantial customer for many of the agency’s brands, particularly in food, and one worth leaning into.
Turning up the sales focus
Chief Operating Officer Joe Kelley, who joined AWG in recent months after leadership roles at Kroger and Albertsons, said the cooperative’s next chapter must emphasize helping members grow sales rather than supply chain efficiency alone.
“We’re turning the dial up on our sales focus,” Kelley said. “We need to help our members sell more.”
Kelley encouraged manufacturers to treat AWG as a partner for launching innovation, testing merchandising programs and bringing new products to market, arguing that independents can move faster than larger chains.
“The true strength of an independent is they can make a decision today and implement it tomorrow,” he said. “Let the independents be successful. Let them have it first.”
From distribution to growth
While the summit’s message centered on partnership, executives were candid about the pressures facing retailers. Consumers continue to evaluate purchases more carefully, compare prices across multiple channels and make shopping decisions differently than they did a few years ago. Funk said those changes are especially evident in center store categories, where shoppers have grown more selective about value.
Helping members respond has become a strategic priority. Leaders discussed investments in pricing capabilities designed to identify key value items through shopper data and competitive market intelligence rather than relying exclusively on traditional gross margin models. Executives also pointed to new warehouse management technology, procurement systems, automation projects and artificial intelligence tools intended to improve forecasting, inventory management and operational efficiency.
Those investments were framed as part of a broader strategy rather than an end in themselves. AWG leaders repeatedly stressed that technology alone will not determine the future of independent grocery; success will depend on how effectively wholesalers, suppliers and retailers work together to bring innovation to market, improve execution and create stronger shopping experiences. That collaboration extends to retail media, product launches, assortment expansion and merchandising, with leaders challenging suppliers to consider independents alongside national chains when introducing new programs.
AWG leaders framed the moment against a broader industry backdrop in which national retailers are streamlining assortments and expanding private brands, which they said creates an opening for independents to differentiate through unique products, local relationships and faster decision-making.
For Funk, those relationships have always been central to the cooperative’s mission. He noted that while warehouses have grown more automated and technology has reshaped nearly every aspect of the business, AWG’s underlying purpose has stayed consistent since a group of independent grocers first joined together in 1926 believing they could accomplish more collectively than alone. What has changed, he said, is the pace of the industry around them.
Founded in 1926, AWG is marking its centennial this year.