Nation’s Largest Grocer Cooperative Is Formed

Associated Wholesale Grocers, Inc. (AWG) and Affiliated Foods Midwest Cooperative, Inc. (AFM)—wholesale cooperatives serving the needs of grocery store member-owners around the country—have agreed to combine their businesses.

Operating under the AWG name, the new cooperative will provide products and services to more than 3,500 independently owned member stores in 35 states—making it America’s largest cooperative food wholesaler.

The agreement was pending the result of a vote today by AFM shareholders at their annual meeting in Omaha, Nebraska. The companies reported a 410-2 vote in favor of the plan, which will go into effect next month.

Factoring in the unification with AFM and the activity of various subsidiaries, the newly expanded AWG—which operates a large facility in Kansas City, Kansas—expects annualized consolidated sales of approximately $10 billion.