Strong net sales, strategic investments, and a growing member base underline AWG’s continued success in a challenging market
Associated Wholesale Grocers (AWG) announced record-breaking figures at its annual shareholders meeting held on March 26, returning a total of $642.1 million in cooperative benefits an increase of 6.53% over the previous year to its members.
The organization, recognized for its significant role in the grocery industry, also reported net sales of $11.5 billion, up 2.41%, and consolidated company sales of $12.1 billion.
Immediately following the meeting, AWG distributed $286.2 million in year-end patronage, underscoring the cooperative’s ability to reward its shareholders despite ongoing market hurdles.
The rise in Class A share value, now trading at $1,650 per share a 2.5% gain further highlights AWG’s strong financial performance.
These outcomes point to how the cooperative’s strategic approach has allowed it to excel even amid heightened competition, supply chain disruptions, and decreased pharmacy sales.
AWG’s total distribution includes interest, allowances, and patronage part of what the cooperative offers to its members as a cornerstone of its business model.
With members’ investment and equity growing to a record $700.1 million, AWG continues to cement its reputation as a stable partner for retailers.
Additionally, the company is celebrating the 40-year anniversaries of its AWG Brands, Always Save in 2024 and Best Choice in 2025, by rolling out programs that add substantial promotional support year over year.
These efforts highlight AWG’s ongoing focus on expanding its private label portfolio to meet consumer demands for quality and value.
The cooperative also completed its largest strategic undertaking in 2024 by finishing the final phase of the Valu Merchandisers Company (VMC) product migration to a centralized distribution hub located in Hernando, Mississippi.
This multiyear project, which stands as AWG’s single-largest capital investment to date, enhances supply chain capabilities and positions the organization to better serve members far into the future.
“We achieved these results through implementation of multiple strategic initiatives, improved operational performance and completing the integration of the Valu Merchandisers Company subsidiary departments into the cooperative. 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 brands growth have significantly contributed to the remarkable 6.53% improvement in total distributions for the year.”
Dan Funk, President and CEO of AWG
These remarks, spotlighting improved business processes and dynamic promotional efforts, reflect AWG’s commitment to create tangible returns for member retailers.
As part of the organization’s commitment to support its members, AWG has taken deliberate measures to mitigate challenges, ranging from addressing supply chain bottlenecks to introducing expanded programs that drive consumer engagement.
By refining operational flow and maintaining partnerships with key vendors, the cooperative fortifies its position in a rapidly evolving market.
The new distribution facility in Hernando represents AWG’s ongoing dedication to efficiency, allowing faster and more reliable service that benefits retailers facing unpredictable disruptions in product availability.
Strengthening the supply chain ensures retailers have the necessary tools to stay competitive, even when broader market conditions prove volatile.
“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 retailersWhile 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.”
Barry Queen, AWG Board Chairman
That optimism echoes the cooperative’s perspective that, by blending innovative strategies with a longstanding mission to support retailers, AWG can navigate industry shifts while maintaining its reputation for reliable returns.
This proactive focus on business development and investment points to the cooperative’s ongoing commitment to remain a leader in the grocery sector for years to come.
