2011 Power 50: No. 18 Jerry Garland

"Momentum” was the theme of Associated Wholesale Grocers' 2010 annual report.

The title was chosen to celebrate the Kansas City, Kan., grocery cooperative's record sales of $7.25 billion, up $200 million from the prior year. AWG's year-end rebate was a record 2.64%, amounting to $151.6 million. In addition, its stock price has risen for 39 consecutive years.

“In a year when many of our competitors reported declining sales, it is significant that AWG and our members were able to produce a sales gain,” Jerry Garland, president and chief executive officer, told SN.

A key development was the June 29, 2011, groundbreaking of the AWG Gulf Coast Division distribution center in Pearl River, La. Slated to open in January 2013, the new facility will join AWG's six other distribution centers in Kansas City, Kan.; Springfield, Mo.; Oklahoma City; Memphis, Tenn.; Nashville, Tenn.; and Fort Worth, Texas.

When completed, the facility will be a catalyst in building top-line sales growth, saving AWG's current retailers over $6 million annually by lowering freight costs and transportation expenses, and improving the availability of fresh food offerings and locally harvested products along the Gulf Coast, according to Garland.

“We anticipate that additional independent Gulf Coast retailers will see the benefits of being an AWG member,” he said.

Meanwhile, AWG has responded to the soft economy by offering more value to the consumer. It's done so by offering deeper discounts on grocery and perishable products, and increasing the focus on its private-label brands: Best Choice and Always Save.

“In the coming year, we again plan to capitalize on the momentum we've enjoyed and continue to push top-line sales. … It is our constant focus,” said Garland.

AWG recently announced that its annual private-label sales exceeded $1 billion for the first time.

“AWG's private brands enjoyed their ninth consecutive year of record sales with an increase of $53 million over the prior year,” said Garland. “The economy played a part in these results, but the company also spent a record $63 million promoting these brands to give customers the very best value possible for their food dollar.”

AWG develops more than 150 new SKUs annually in the Best Choice and Always Save product lines. In addition, it has strengthened its speed-to-shelf initiatives for its retailers.

The company trains its sales representatives to assist AWG member retailers with store-level promotional activities.

Looking ahead, Garland said there's significant growth potential from new membership. AWG currently has over 600 member-owners and services over 2,400 retail outlets in 22 states. It routinely adds between $100 million and $300 million per year from new members, according to Garland.