Last updated on September 19th, 2022 at 08:59 am
Associated Wholesale Grocers reported record consolidated company sales of $10.6 billion, an increase of 13.3 percent on a comparable basis over 2019, and distributed $254.4 million in year-end patronage, an increase of $40.59 million over 2019. The numbers were released immediately following its Annual Shareholders Meeting held via videoconference March 23.
AWG’s cooperative sales were $9.2 billion. The total distribution of cooperative benefits returned to shareholders, including interest, allowances and patronage, was $615 million. Total members’ equity ended the year valued at $538.1 million. All results were records.
Additionally, due to strong subsidiary company results and gains from certain financial transactions, the trading value of AWG stock increased 50 percent. This increase in stock value allocated over $31.5 million in additional equity to existing shareholders. After this increase, the board of directors also declared a 3-for-1 stock split, which provides two shares of “B” common stock for every “A” or “B” share currently held. The new trading value of AWG stock is $1,200 per share.
“AWG set new records in every financial metric category and in patronage paid to our member stores while overcoming substantial challenges facing our business and the industry this past year,” said David Smith, president and CEO. “While keeping our teammates safe and maintaining supply to our members were top priorities, we also made significant progress on our strategic initiatives of Value Proposition, Health, Technology and AWG Brands.”
These focus areas included a record investment by AWG, an increase of $40 million over 2019, into promotional allowances and discounts on numerous center store and fresh products. This performance was wholly due to the company’s firm and dedicated membership base of great retailers, hard-working teammates and collaborative vendor partners.
“The theme of our 2020 annual report – Overcoming Obstacles – symbolizes the herculean efforts and accomplishments of the past year by AWG’s members, teammates and vendors,” Smith said. “This theme, combined with the word “Together” illustrates the essence of our cooperative, our financial strength and capabilities and describes our collective ability to weather the challenges of today and tomorrow. Our goal for 2021 and beyond is to unlock more of the potential power contained within all our collective companies when we work together on a common mission, with common objectives and common trust.”
Barry Queen, AWG’s chairman of the board, stated, “AWG reported that its member stores outperformed all other grocery channels with comparable year-over-year retail sales increases by 48 percent, as reported by Nielsen. I’ve witnessed this first-hand, as an independent retailer and cooperative member myself and by talking with my peer retailers. It couldn’t have happened without our members’ willingness and readiness to adapt quickly and our cooperative’s ability to maintain a flow of goods despite the constant battle for supply. 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 2021 and can’t wait to see what we can achieve.”
Kansas City, Kansas-based AWG is a cooperative food wholesaler to independently owned supermarkets, serving more than 1,000 member companies and over 3,100 locations throughout 28 states from eight full-line wholesale divisions. The consolidated sales for AWG are $10.6 billion. In addition to its cooperative wholesale operations, the company also operates subsidiary companies which provide certain 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.
