Associated Wholesale Grocers Inc. reported net sales of $11.5 billion, up 2.41%, and consolidated company sales of $12.1 billion, and the cooperative distributed a record $286.2 million of year-end patronage immediately following its annual shareholders meeting held March 26.
The total distribution of cooperative benefits returned to shareholders, including interest, allowances and patronage, was a record $642.1 million, up 6.53%, according to a news release. 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%, AWG said.
“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,” said Dan Funk, president and CEO 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. 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.”
Highlighted evelopments include celebrating AWG Brands 40-year anniversaries for Always Save in 2024 and Best Choice in 2025, with programming that delivered an additional $25 million in promotional support year over year, the release said. AWG said it 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.
The multiyear project has been the single-largest capital investment AWG has made, and the facility enhances its supply chain capabilities and ensures AWG can meet members’ needs for generations to come, the release 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 board chairman. “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.”
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