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Midwest Wholesaler/Distributor News

AWG Reduces Transportation Costs For Members

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Kansas City, Kansas-based Associated Wholesale Grocers has announced a temporary reduction to fuel surcharges for its member retailers through 2022 and a one-time rebate for year-to-date activity. AWG estimates the sum of the measures to exceed $9 million.

“AWG is proud to be positioned to make this very significant investment to help our member-retailers maintain competitiveness and profitability, despite the ongoing fuel cost and inflationary headwinds and margin pressures; being driven by an increasingly price competitive retail climate,” said David Smith, president and CEO.

Barry Queen, chairman of the board, shared, “AWG’s great cooperative model, which always places members first, is truly on display with this decision. AWG is easing the financial burden we’ve been experiencing on fuel with the temporary reduction of surcharges and is sending this money back to us now, instead of including it with patronage payments distributed in March.

“This is not something independent retailers expect from their wholesalers, and it’s fantastic that AWG as a cooperative is different and is financially positioned to continue bringing forward assistance when we need it most.” 

Associated Wholesale Grocers is the nation’s largest cooperative food wholesaler to independently owned supermarkets, serving more than 1,100 member companies and more than 3,400 locations  throughout 31 states from nine wholesale divisions.

In addition to its cooperative wholesale operations, the company also operates subsidiary companies that provide real estate and supermarket development services, print and digital marketing services, health and beauty care, general merchandise, pharmaceutical products, specialty foods and organic products.

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