PEMBROKE, N.H. -- Members of Associated Grocers of New England need to work together to achieve the best possible pricing, Mike Burgoine, president and chief executive officer of the cooperative, told shareholders at last week's annual meeting here.
"If ever there was a time that we need to stand together and be heard, now is that time," Burgoine said. "We need to speak to the vendor community with a unified voice. Manufacturers and brokers need to know that AG and its retailers can work together and produce results just as effectively as any chain."
Burgoine urged his members to let AG find the best deals for them.
"Individually you may find a better deal from another supplier, but when you say 'No' to that supplier -- when you tell him AG does your buying -- you send a strong message that the best overall pricing and service can only truly be achieved from your warehouse," he said.
"Together we have the clout to get the best possible cost and quality of product, the best possible programs and the best chance for success.
"We can be like the tree that falls in the deepest part of the forest that nobody hears, or we can be a healthy forest of trees, rooted in a common ground, sheltering each other from the unpredictable winds of competition."
Burgoine made his remarks at a church next to the site of AG's new distribution center here -- a 360,000-square-foot facility scheduled to be completed early in 2006, at which point AG will move its base of operations here.
Speaking with SN, Burgoine said the move was necessitated by inefficiencies and overcapacity at its 50-year-old distribution center -- a 260,000-square-foot facility 20 miles north in Manchester, N.H.
The new warehouse, which he said is 40% completed, will have 40-foot ceilings with product stacked 32 feet high.
Burgoine said AG's sales, profits and patronage dividends were all at record levels last year, with sales of $275 million, up 3% from the 53-week prior year; income before patronage and taxes were up 33%, and patronage dividends were up 27%.
In his presentation, Burgoine stressed the values of a cooperative.
"A single store owner, standing alone, is highly vulnerable, but when banded together with other store owners, cooperative strength and security can be achieved," he said.
