Associated Wholesale Grocers Reports Record Results at Annual Shareholders Meeting

Associated Wholesale Grocers, Inc. (AWG) reported record consolidated company sales of $10.8 billion, an increase of 1.68% on a comparable basis over 2020 and distributed $247 million in year-end patronage immediately following its Annual Shareholders Meeting held yesterday.

AWG’s cooperative sales were $9.8 billion, up 1.39%. 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%.

“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 chief executive officer, AWG. “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,” explained Smith. “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.”