Wells Drug February

Grocery cooperatives likely combining

Affiliated Foods Midwest reaches agreement with Associated Wholesale Grocers;
Store owners will learn more at Aug. 12 meeting in Norfolk

Affiliated Foods store owners throughout Nebraska received notice last week of an agreement reached to combine Affiliated Foods Midwest Cooperative, Inc. (AFM) and Associated Wholesale Grocers, Inc. (AWG).
The alliance was unanimoously approved by the board of directors of each company. However, one condition of the transaction is approval by Affiliated Foods shareholders
Store owners from this area will learn more about the agreement at a meeting on Friday, Aug. 12, in Norfolk.
Boone County has four AFM stores at Albion, Cedar Rapids, Petersburg and St. Edward.
Terms of the transaction, announced July 28, were not disclosed.
Affiliated Foods Midwest is a retailer-owned cooperative that supplies members operating over 800 stores in 15 states. Its 2015 sales were listed at $1.6 billion. The cooperative has distribution facilities in Norfolk, NE, Elwood, KS, and Kenosha, WI.
Associated Wholesale Grocers is a retailer-owned cooperative that supplies members who operate over 3,000 stores in 30 states. Its 2015 sales were listed at $8.93 billion. AWG has a total of nine distribution centers in Kansas, Missouri, Oklahoma, Tennessee, Mississippi, Texas and Louisiana.
AWG was named the Kansas City area’s top private sector employer in 2014 and 2015.
Affiliated Foods Midwest has its roots in Nebraska. It began in at Plainview in 1931 before moving its headquarters to Norfolk.

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