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Following the announcement in August that David Smith would succeed Jerry Garland as CEO of Associated Wholesale Grocers at the end of 2015, AWG today has rounded out the rest of its new leadership team, which includes Jeff Pedersen, EVP, division operations; Dan Funk, EVP, merchandising and marketing; Scott Welman, SVP, general counsel; Gary Koch, EVP/CFO; Patrick Reeves, SVP, chief human resources officer; and Richard Kearns EVP, distribution and Logistics.
“This leadership team draws on a wealth of diverse backgrounds, experiences and talents," Smith said. "They are aligned in leading our employees to serve the needs of our membership and meet the challenges ahead."
AWG’s Net Sales Nearly $9B
At its annual shareholder’s meeting this month, AWG reported consolidated net sales of $8.9 billion and distributed $194 million in year-end patronage, which represented 2.8 percent of qualifying sales. This was an increase of 2 percent over the prior year and the second highest dollars and percentage in AWG history.
Gross profit, including cash discounts from suppliers, was 5.7 percent, up 2 percent over last year due to improvements in supply chain controls. Operating (SG&A) expenses were 3.1 percent, the same as the prior year.
Smith attributes the results to AWG's focus on reducing operating expenses and lowering its effective markup and fees charged to members. “This is our model and it has worked well for 90 years,” he said.