Associated Wholesale Grocers

Associated Wholesale Grocers, Inc. (AWG) is the United States's largest cooperative food wholesaler to independently owned supermarkets, grocery serving more than 3,500 locations in 35 states and from 9 full-line wholesale divisions. The consolidated run-rate sale for AWG is $10 billion. In addition to its' cooperative wholesale operations, the company also operates subsidiary companies which provide certain real estate and supermarket development services, retail accounting, digital marketing services, military commissary supply, and is a wholesale supply provider of health and beauty care, general merchandise, specialty/international foods and pharmaceutical supply. It was founded in 1924 as Associated Grocers of Kansas City and is based in Kansas City, Kansas. Associated Wholesale Grocers distributes four private-label brands of grocery products, Best Choice, Clearly Organic, Always Save, and Superior Selections along with IGA.

AWG's history dates back to 1924 when a group of 20 independent grocers met for the first time to discuss the advantages of combining their buying and advertising power. Competition was fierce in those days with national chains dominating the grocery scene. Independents struggled to compete, and a cooperative effort was viewed as the only way in which to gain market strength. For two years, the group bought collectively and stored their wares in the back of a store owned by J.C. Harline at 39th and Troost in Kansas City, Missouri.

The cooperative was a success, so in March, 1926, Articles of Incorporation were filed and Associated Grocers of Kansas City (AG) formally began. The company’s first official warehouse was located in the second floor of the Morehead Grocery Company, at 3842 Troost.

In 1953, the company name was changed to Associated Wholesale Grocers, Inc., (AWG) and the following year, AWG paid its first year-end patronage of $20,441 to members. Prior to 1954, members had received dividends on their stock, usually from $3-$6 per share. The rebate was definitely a better deal.

By the end of the 1960s, AWG had two new warehouses. In Springfield, a 300,000 square foot facility was built to replace the one destroyed by fire in 1970, and in Kansas City the long-awaited 565,000 square foot office and warehouse complex was ready for occupancy in 1972.

In the late 1980s, AWG growth continued through acquisitions. AWG members bought 40 Food Barn stores and 29 Homeland stores, and the former Homeland warehouse in Oklahoma City became AWG’s third division. Valu Merchandisers, AWG’s wholly owned subsidiary supplying health and beauty care products and general merchandise, came on line offering a selection of more than 12,000 items from its 219,000 square foot facility in Fort Scott, Kansas.

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