associated wholesale grocersawginc.com/awg resource guide 3.7.2018_2.pdfprovide some capital to...

Associated Wholesale Grocers

Informational Resource Guide

Over 90 Years of Grocery SuccessA retailer-owned cooperative serving

over 4,000 retail member stores.

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Our Vision Our vision is to be the most retailer-focused and highest performing member-owned food wholesaler.

Our MissionOur mission is to provide our member-retailers all the tools, products, and services they need to compete

favorably in all markets served. This includes top quality supermarket merchandise and support services, all at the lowest possible cost.

ASSOCIATED WHOLESALE GROCERS, INC.

Your GoalsOur

Future

About Our CompanyBuilding Trust through Transparency

Largest Retailer-Owned Grocery Co-Op in the U.S.

19 Member Retailer Board

Established in 1926

Over 30 States

Over 4,000 Retail Locations

Oklahoma CityAdded in 1995

I f you are currently a store owner who is considering a wholesaler switch, or if you are thinking about buying your first store, Associated Wholesale Grocers Inc. (AWG) offers a total program that can accommodate any level of need. By joining AWG, you become part of one of the most successful wholesalers in the country.

As a retailer-owned company, we not only provide members with the lowest cost of goods every day, but also return our profits back to our members.

RETAILER OWNED • RETAILER FOCUSED

Our DivisionsAWG customers are serviced from our eight full-line

wholesale divisions. The consolidated projected sales for 2018 are over $10 billion.

Kansas CityOriginal Location

VMC Fort ScottAdded in 1995

SpringfieldAdded in 1938

Oklahoma CityAdded in 1995

NebraskaAdded in 2016

Gulf CoastAdded in 2013

MemphisAdded in 2003

VMC MemphisAdded in 2003

NashvilleAdded in 2003

Great LakesAdded in 2016

States with divisions

States with AWG distribution

States without AWG distribution

In the last 15 years, total sales have almost tripled, rising from $3.1 billion to $9.2 bil-lion. Total distribution to members (patron-age, allowances and interest) has grown from $485.6 million in 2012 to $546.5 million in 2016.

STOCK VALUESince 1973, AWG’s stock value has increased steadily. In 1973, membership was valued at $2,325. With stock splits in 1987 and 2009, a 1973 stock membership is valued at $360,000 in 2017. New members are required to pur-chase 15 shares of stock at $2,000 per share in 2017, an investment of $30,000.

PATRONAGEFor the past 10 years, patronage has been in excess of 2.5% of purchases and a 2.78% in 2016. A small portion of earnings is retained by AWG as set by the Board of Directors to provide some capital to invest in the whole-sale distribution centers.

Profit Profile


OOuurr MMeemmbbeerrss PPrroossppeerr

Our Simple Business ModelWe make it easy for our retailers


2012 2013 2014 2015 2016

NET SALESConsolidated (after eliminations)

$7.85

$8.38

$8.93$8.94

$9.18

Total Gross Profit(Co-op only, includes cash discount)

5.90%5.83%

5.69%5.71% 5.76%

2012 2013 2014 2015 2016

Selling, General & Administrative Expense

(Co-op only, as a percent to total net sales)

3.32%

3.22%

3.12%3.13%

3.25%

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$7.5 BILLION

$7.0 BILLION

$8.0 BILLION

$8.5 BILLION

$9.0 BILLION

$9.5 BILLION

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

2.90%

3.00%

3.10%

3.20%

3.30%

3.40%

$155.0

$165.0

$175.0

$185.0

$195.0

$205.0

Patronage Dollars(Millions)

$172.9

$182.6

$194.7 $193.8

$201.7

5 Year Net SalesConsolidated (after eliminations)


Product OfferingsAWG offers a full line of products for members.

____________________

Grocery____________________ Milk, Dairy, Organic, Frozen Food, Gluten Free, Cigarettes, Hispanic, Tobacco

____________________

Meat____________________ Beef, Pork, Poultry, Seafood, Gluten Free,Antibiotic Free, Grass Fed, Organic, Hispanic

____________________

VMC____________________ Pharmacy, HBC, Seasonal, Dollar, Specialty Foods, Gluten Free, Organic, Hispanic

____________________

Produce____________________ Fruits, Vegetables, Organic

____________________

Floral____________________ Cut Flowers, Potted Plants, Balloons, Specialty Items

____________________

Deli/Bakery____________________ Thaw & Sell, Gluten Free


Product OfferingsAWG offers a full line of products for members.

Grocery, Dairy & FrozenAWG offers a full line of products for members.

Our Category Sales and Inven-tory Management personnel are very knowledgeable about each market. They will work to protect and grow your market position.

New items are reviewed on a weekly basis and are accepted or rejected based on introduc-tory deal levels, consumer pro-motion activity, and market needs.

For more information, see “Merchandising” and “Category Sales” sections.

• Meat Events: Running 52 weeks of the year, AWG offers deep discounted deals on processed and frozen meats, in 4 week increments.

• 18 strategic sale events which offer aggressive promotions in 2 week increments.

• Holidays and Special Events: supported with the best in market pricing on key items along with Best Choice Turkeys and Best Choice Spiral Hams.

• Web Blast Opportunities occur approx. 15 times annually, and offer hot buys on commodity items, processed and frozen meat, and seafood items.

• TPR Programs: supported with offerings that can be customized for specific needs.

• AWG offers over 100 meat items in store brands under the Best Choice, Always Save, and IGA labels.


AWG has a complete selection with over 2,000 items. Truckload meat purchases allow us to secure the lowest price levels available.

Meat

Our programs are designed for full service de-partments to case-ready self-service cases. A full line of bag shrimp is available in the Best Choice labels.

A full line of fresh and frozen seafood is avail-able in bulk or tray ready.

Seafood buys are located at each division to assist with regional and seasonal items.

Meat & Seafood specialists are available to help with training, weekly ads, special events, case sets, service case merchandising and gross profit control.


AWG offers a wide variety in fresh andfrozen seafood.

Seafood

Quality is our #1 priority! We have partnered with the most respected and highest quality suppliers. We secure contract pricing on several commodities to protect members from swings in market pricing.

We have our own inspectors on the ground in various growing regions that will make sure the best and freshest product is being loaded our trucks.

Our trained professionals have the ability to help with merchandising strategy and store execution. Promotional support includes:

• Quarterly Promotional Planners• Weekly Power Buys• Weekly Ad List• Food Show Promotions• Seasonal Deep Discounts


AWG partners with the most respected, highest quality suppliers: Dole, Oceanmist, Sage Fruit, Sunkist, Driscoll, Naturipe, Sun World & many others.

Produce

Offering a complete line of:

• Fresh Flowers• Green Plants• Blooming Plants• Bedding Plants• All Accessories

Training is available year-round with merchandising & holiday seminars, hands-on classes, and floral shows. One-on-one available at store level.


Our highly experienced floral buyers and merchandisers can help build your floral sales, whether you have one or fifty stores.

Floral

Our services include:

• Purchasing and distributing high quality products

• Analyzing market trends• Menu Labeling Support to meet Federal

requirements• Providing expertise from our dedicated

specialists• Offering solutions to simplify labor and

operational issues

At AWG, we are committed to providing you with the highest quality products and innovative solutions to help you succeed in today’s marketplace.

Whether you are looking to plan a menu of signature products or trying to capture health conscious consumers, you can rely on AWG for new ideas, great customer service, and quality sourcing of superior brands and products.


AWG offers teaching and training programs from our team and vendors that will help to meet the ever changing marketplace.

Deli

As our partner, you have access to Merchandising and Sales Programs for fresh bakeries. Or, for those looking for a simpler solution, we have a complete Thaw & Sell Platform that can give you a “fresh-baked” image.

Everyday we collaborate with customers and our vendors to help them solve problems, meet challenges and uncover new opportunities.

Assistance is available in setting up a complete in-store bakery including:

• Design• Equipment selection• Employee training• Item selection• Pricing• Merchandising• Information on current trends

Our staff of specialists and out regional teams will help you establish a program tailored to your market and store format.

ASSOCIATED WHOLESALE GROCERS, INC. RETAILER OWNED • RETAILER FOCUSED

Our bakery department offers much more than high quality ingredients.

Bakery

Our Store BrandsWe offer the highest quality in all of our products.

____________________

Always Save____________________ Everyday low price, the economic alternative.

480 items

____________________

Clearly Organic____________________ Organic you can afford.

207 items

____________________

Best ChoiceGrocery____________________ Quality products at affordable prices.

Over 4,000 Food and Home/Health/Beauty items

____________________

Superior Selections____________________ Making gourmet deliciously affordable.

107 items

____________________

Best ChoiceHBC____________________ Home, health an beauty items.

Over 4,000 Food and Home/Health/Beauty items

____________________

IGA____________________ IGA store brands program has over 800 SKU’s in grocery/dairy/frozen and also items in meat, produce, deli and GM


AWG BRANDS DIGITAL MARKETING: AWG Brands connect with today’s consumers through a robust online presence. Each brand boasts its own website complete with ever-changing content including recipes, customer support, coupons, blogs, social media hubs (including Facebook, Twitter, Instagram and Pinterest), email clubs and a nutritionist. All of the content, giveaways and coupons posted on any of the AWG Brands’ digital sites are free for

member retailers to use, share and market. Visit awginc.com for more information.

BEST CHOICE SAVE-A-LABEL: The Save-A-Label program helps non-profit organizations raise money. Currently there are more than 8,000+ non-profit groups that participate. AWG Brands has 50+ sales

representatives who will work with individual stores to customize a program that fits their specific demographic.

Always Save® BrandEveryday Low Price

alwayssavebrand.com


The Always Save® brand is an economic alternative for customers who want the best price with consistent quality. Our goal is to offer you products at everyday low pricing. We do that with 480 items and back it up with a guarantee.

Best Choice® BrandBest Quality for the Best Price

bestchoicebrand.com

Best Choice® brand products are developed with customer satisfaction in mind. Our goal is to offer you quality products at affordable prices. Best Choice items are equal to, or better than, national brand quality. We’re always looking for new products that meet or exceed our standards. Adding new Best Choice® products is an ongoing process to improve our program and meet your customer’s needs.


Clearly Organic® BrandOrganic You Can Afford

Superior Selections® BrandBring Fine Dining home

clearlyorganicbrand.com

superiorselectionsbrand.com

We know you’re looking for more healthful alternatives to offer your customers, that is why we’ve introduced our organic line, Clearly Organic®. Not only is Clearly Organic® more cost-efficient than national brands, but you can offer your customers conventional and organic products in one place.

Our impressive menu of products will delight even the most finicky foodies while making gourmet deliciously affordable. Now you can offer your customer the superior quality products and they won’t need to go to the specialty food store. Superior Selections offers outstanding taste and quality.


IGA is more than a simple banner- more than private label merchandise on your shelf……IGA is a full-fledged brand!

The Hometown IGA concept is an ideal format for county seat towns and rural communities, providing a proven market strategy that combines the IGA brand with your local store identity. Time, value and a pleasant shopping experience are the building blocks to IGA allowing you to compete on more than item and price! IGA stores come in all sizes ranging from 12,000 to 50,000 square feet.

IGA stores carry fresh produce and fresh-cut meats at a good value, with many stores offering deli/bakery products based on store demographics. A wide selection of IGA products is offered in all departments of the store, supplemented by Best Choice and Always Save.

The IGA promise of offering great customer service, a strong sense of community, family, value, convenience, and quality allow this concept to compete in the market place.

IGA DECOR & SIGNAGEAWG produces an IGA Product Catalog with a complete listing of items including: department signs and danglers, banners, Pick 5 signage, end cap signs, card stock and many

other items. The product catalog also includes a short description of all IGA programs AWG has to offer and contact information. Decor Source Group (DSG) is your store front signage and interior décor resource. Some examples of their finished products are shown on the next page.

The IGA store brands program at AWG has over 800 SKU’s in grocery-dairy-frozen and also incorporates items in meat, produce, deli and GM. For more than 80 years, IGA’s exclusive products have been a trusted staple in shoppers’ homes. These items can only be found in IGA branded stores.

AWG works closely with IGA to select and offer high-quality, low-priced items with the same high standards as Best Choice. All IGA products are 100% guaranteed.

IGA PRODUCEWe offer selected IGA produce Items, including bags of 3-lb. onions, 10-lb. russet potatoes, 4-lb. navel oranges, and three varieties of 3-lb. apples. Also offered is a produce guide for each selling season with a complete list of products that should be featured and merchandising suggestions with sample pictures.


Specially designed IGA produce bins, signage and danglers are also offered to help with merchandising.

IGA MEATIGA is also represented well in the meat department with over two dozen offerings. These include frozen 3-lb. chicken breast and tenders, frozen fish and smoked meat items. Members also market choice angus beef as

IGA Choice Angus Beef. The IGA Pick 5 program is a standard in most of our member stores. Banners, case signage and dividers are available.

IGA DELI We offer several IGA deli meat items and deli salads in various sizes. These items offer a value in this department and represent the IGA brand across the store.


Valu Merchandisers Co.

Retail focused sales and merchandising teams

Complete and shopper focused category solutions

Innovative marketing and merchandising

Aggressive promotional and marketing programs

Program Highlights

awginc.com/valu

Health, Beauty& Wellness

16,000Items

CompetitiveProgram

PharmacyTurnkeyProgram

Over 220 Pharmacys

Natural,Organic &Specialty

10,500+ ItemsComplete Solution

Program

Hispanic& International

1,700 Hispanic Items

ComprehensiveProgram

Dollar

3,500+ ItemsBest in Class

Program

GeneralMerchandise

9,200 GM &9,400 Seasonal

ItemsExtensive Year-

Round Programs


Program Highlights

awginc.com/valu

HOW PRICING WORKS• Billing pricing will be our book cost plus a fee.• The fee is determined by the mark-up bracket.• Your bracket is determined by your average

order.• Purchasing one order per week is to your

advantage.• Brackets are locked and fixed, and reviewed

every 6 months

WHAT ARE THE VMC FREIGHT CHARGES?• VMC products carry your standard grocery

freight plus an additional fee below:

HBW + .60%GM + .85%Specialty foods + 1.00%

Note: VMC subsidizes member freight from VMC facilities to Division DC’S as actual freight costs are higher than reflected above.

VMC PROGRAM HIGHLIGHTS• Extensive year round seasonal programs• Comprehensive ad programs• Retail focused sales & merchandising teams.• Robust private brand program including HBC,

GM and organic and specialty foods• Comprehensive hispanic program• Best in class dollar program• Pharmacy program• 48 Hour turnaround time on most orders• Case eligible items

VMC PROMOTIONAL AND MARKETING PROGRAMS:Endcap program “wincaps”- included in this program are top HBC brands with suggested retails at/or below Walmart retails with average of 20% gross margin. Product and signage ship together for easy in store execution. There aretwo options to choose from each month.

Valu Merchandisers Company (VMC), a wholly owned subsidiary of Associated Wholesale Grocers, Inc. VMC was formed to provide a cost effective merchandise program for our member retailers. Our goal is to supply GM/HBC, specialty foods and seasonal products to you at a lower cost than alternative suppliers. Two central warehouses, located in Ft. Scott, KS & Memphis, TN provide efficiencies of scale to over 3800 customers throughout a thirty-six state area.

ASSORTMENTVMC has a comprehensive assortment of approximately 44,000 items:• 13,400 Health & wellness items; these include

718 Best Choice private label items. • 15,080 General Merchandise items, including

173 Best Choice private label items and 8,100 seasonal items

• 12,200 Natural organic and specialty foods items, including 225 clearly organic private label items and 1,700 hispanic items

• 3,430 Dollar items, including dollar food and GM/HBC

ORDERS/LOQS• The store, VMC warehouse and the sales

dept. establish delivery schedule.• Orders must be transmitted within

established order deadlines.• Orders are sent to VMC in Ft. Scott, KS or

Memphis, TN where they are pulled, loaded and either shipped directly to the store or the AWG grocery warehouse for cross-docking to be shipped with your next scheduled delivery.

• VMC everyday orders are in eaches• Ship in loq (logical order quantities)


Power Buy - is a monthly promotion with aggressive O/I allowances provided by both the vendor and VMC. This program includes top brands in a category.TPR - there are over 1700 items offered in 13 cycles per year. Allowances are calculated and credits are issued on statement 14 days after performance period. EDLP (every day low price) - over 1,300 KVI items from popular brands sold below cost, to allow members to be competitive in their market place against mass merchants.Seasonal - a comprehensive assortment, competitive pricing for all seasons and offer the option to order planograms. SOLO - is a direct truckload program that has lower fee and no freight. Digital Deals - online promotions featuring new items and seasonal items. Web Blast - bi-monthly promotions, communicated through a video presentation. Top brands and high velocity are included in these promotions. Aggressive deals are funded by vendors and VMC.Clip strips/cross merchandise - helps gain additional sales $ profits without allocating additional store space.

VMC TRADE SHOWSVMC shows are a great opportunity to see new products, meet with vendors, view planograms and category initiatives and get great deals! VMC holds two shows a year in February and August. The shows are held in Overland Park, KS.

Show highlights include:• New item showcases - 100+ products• ESP’S (extreme show prices) - 20% off or more. • Seasonal programs • Dollar program

VMC SUPPORT SERVICESReturn policy - Damaged products and outdates are either sent to the reclamation center or receive an off invoice allowance for select vendors participating in the program. Retail pricing options - Seven retail price zones will be maintained. The VMC retail pricing specialists will assist you with your retail pricing needs. Customer service - A full-time customer service coordinator can be contacted toll-free to resolve your questions promptly. Ordering and delivery schedule - Orders will be processed & billed on a timely basis.Product updates & trends - VMC Connection is published and distributed monthly to all retailers on the program. This newsletter contains vital information about new items, trends, industry news and special promotions including upcoming and product launches.

ARCAWG Retail Connection is a tool for communicating information electronically between you and VMC. In this website you can find new items, FSI’S, planograms & more!

ARC URL is www.Awginc.ComYou can contact customer support @ 1-800-294-7877 or 1-800-480-8258.

Valu Merchandisers (CONT’D)


Valu Merchandisers (CONT’D)


AWG Mark UpsAll product is sold at cost plus a mark up

plus freight from the DC to retail store

GROCERYAll except as listed below: Cost + 3%Coffee-Ground, larger than 30 oz. Dead Net + 1/2%Liquid Laundry Detergent Cost + 1%Private Label Sugar, 4-lb only CostPrivate Label Butter, 1-lb Cost + 2% Eggs Cost + 60¢/case

(promotional spending accrual of 20¢ per case)

Frozen Food Cost + 4%Ice Cream/Novelties Cost + 8%

BAKERY / DELI Frozen & Refrigerated Cost + 5%Dry Cost + 3%

PRODUCE & FLORALNon Fresh Cost + 5%Fresh Produce Cost + 10% (blended overall MAX)Floral Cost + 10%

MEATBeef, Pork, Lamb, Veal Cost + $.03 lbWhole Fryers Cost + $.02 lbChicken/Turkey Fresh Cost + $.05 lb Parts (Breast, Drums, Thighs, Wings, Gizzards, Liver) Whole Body Turkey Cost + $.03 lbFrozen Meat Cost + 5% Processed Meat Cost + 3%Seafood Cost + 5%Commodity Hams Cost + $.03 lbPremium Hams Cost + $.04 lbSupplies Cost + 5%(Any special items not set up as a regular stock item will be marked up $.04 per lb.)

CIGARETTES* sliding scale:0 to 60 ctn Cost 61 to 250 ctn Cost less $.05 a carton251 to 360 ctn Cost less $.10 a cartonOver 360 ctn Cost less $.15 a carton*1% flat freight on all cigarettes. (Special order items will be marked up 2% over normal

markup.)

We offer a wide range of resources for all of our retailers!


RealEstate

StoreEngineering

Design & DécorSource Group

Education &Training

RetailerSupport

AWG Support Services

Services

When it’s time to grow, AWG can help. Retailers that are expanding, relocating, remod-eling or adding a new location can count on the cooperative’s real estate department. AWG can help secure new store locations, negotiate leases and produce market analysis and feasibility studies.

• Development• Market Research• Consumer Research• Financial Analysis


AWG Support Services

Real Estate

AWG’s Store Engineering can assist the retailer with any equipment need, as well as remod-els, expansions or energy upgrades.

Store Engineering develops fixture plans with the retailer and works with size and site con-straints, customer demographics, lifestyle and marketing recommendations. Specifications for bidding can be provided, and our volume buying ability help to ensure the best price.

• Store Concept• Store Planning• Fixture Acquisition• Project Management• Maintenance Programs


Store Engineering

AWG’s own Design and Decor Source Group is your answer to market specific interiors that are designed for your customer, your marketplace, and your strategy. You know your customer and your business better than anyone. Our licensed, award-winning interior designers know super market and retail design better than anyone. By partnering with our design team, you’ll get an environment that gives you the competitive edge in your marketplace.

• Customized Decor• Customer/Ad Group Specific• In-House Staff• Interior Designers• Project Managers• Lighting Programs

AWG’s research and years of serving retail grocers enables us to bring you highly successful store concepts. From the special needs of rural markets, to high profile perishables-oriented stores, AWG has a concept that’s right for you.


Design & Decor Source Group


Learning is a journey - begin your journey with AWG.

The AWG Learning and Development Department exists to support our Members, their em-ployees and the employees of AWG through education opportunities. A wide range of learning opportunities are offered including:

• STORE OPERATIONS This series of workshops focuses on various aspects of store operations including Food Safe-ty Certification.

• MANAGEMENT AND LEADERSHIPOur management development workshops are designed as interactive sessions providing both experienced and inexperienced managers a chance to learn and practice new skills.

• DEPARTMENT MERCHANDISING SERIESThese single-day and multi-day workshops focus on merchandising and management tech-niques specific to each department.

• GROCERS GETAWAYOur members travel to market areas throughout the United States looking for new ideas on merchandising, operations, decor and store layout.

For additional details please go to www.awgeducation.com.

Learning & Development


AWG is staffed with experienced professionals who can help you with all of your operational, merchandising, advertising and marketing needs.

Services include:

Total Store CounselingCategory ManagementMerchandising for: Private Brands, Meat, Deli/Bakery, Produce, Floral and Non-FoodsAdvertising & Marketing

Retail Support

National brand Category Managers are re-sponsible for growing profitable sales for AWG’s members for the items and categories in their charge.

To accomplish their goals, the Category Man-agers focus on several key areas:

ITEM MIXThe Category Manager works with the Center Store Director in each division to ensure the proper mix of products ex-ist to support their Members’ needs. Our Shelf Management department builds plan-o-grams with the agreed-upon assortment.

PROMOTIONSWorking with our vendor/supplier commu-nity, Category Managers negotiate promo-tional opportunities for our Members.

COSTThe Category Manager is responsible for de-livering the lowest cost possible for their prod-ucts. Each Manager works with our Inventory Management department to ensure products are bought at the best possible price.

CATEGORY PLANSEach Category Manager follows a prescribed schedule of category updates so that our merchandising plans are current and relevant to today’s market, including the latest item developments, shelf sets, and competitive situations.

For every department in your store, AWG’s buying power ensures you the lowest possi-ble cost of goods and, the best deals available from the trade. From groceries to floral, AWG brings you a competitive advantage to help you build a better bottom line.


Category Sales

HY-BRID STORE SUPPLY PROGRAMEach division stocks the top-moving store sup-ply items in primary categories such as bags, foam trays and film, available on your normal grocery truck at grocery mark-ups.

Additionally, AWG partners with Bunzl, the leading supplier nationally to offer a full va-riety of store supplies on a cross-dock ba-sis. AWG delivers the best possible prices, achieved through regularly scheduled manu-facturer product bids with-in key commodi-ties. Members can rely on direct representa-tion and help from 27 product experts in the field.

DROP SHIPMENTS TO STORESAWG offers central billing for drop shipment vendors, consolidating and processing into one bill for the retailer. AWG negotiates a “central bill discount” with most drop ship-ment vendors. Charges are received from vendors and billed to retailers with a signed delivery ticket. For many vendors, the entire discount is rebated to you every four weeks. On all other central bill vendors, a small per-centage of the discount is retained to cover the administrative costs of the program.

MCCORMICK SPICE/SEASONINGS PROGRAMMembers will earn a 4% rebate on McCormick basic spices and seasonings and a 6% rebate on McCormick specialty items. The rebates are paid on a quarterly basis by check.


MerchandisingAWG has designed merchandising programs and services to give you great flexibility and control over merchandising.

AWG provides a merchandising sales event calendar that contains promotional deals geared to the upcoming season. Each plan-ning cycle contains the following sales pro-grams: • Event Specials• Super Sale• Pallet Merchandising Modules• AWG Brands Merchandising Events• Clip the Competition (Perishables)• Strategic Sales (Fresh Meat)• Feature and Best Buys (Produce)

Pallet Allowances 1–24 cases $2.50 per pallet25 or more cases $3.00 per pallet

SOLO (STORE ORDER LOAD OPTION)The SOLO program offers you the oppor-tunity to have direct truckload buys billed through the AWG warehouse. When you buy a truckload of merchandise on SOLO from one vendor through special authorized deals, the product is shipped from the manu-facturer to your store by common carrier. It is billed to the store at cost plus 1% of the net-billed cost to AWG.

CONTROLLED ITEM SELECTIONAn authorized item list can be provided to AWG by the store, which can be utilized to control the selection of items.

Marketing/Advertising Customize your brand creating IMPACT

Marketing/Advertising Customize your brand creating IMPACT

Marketing/AdvertisingCustomize your brand

We are all about building relationships with our members, just as you are with your custom-ers and the markets you serve. Put us on your team and you get our absolute attention and total respect on every single marketing opportunity and project.

It’s just the kind of attention your brand deserves from the kind of people who can make great things happen. We’ll help you utilize a variety of cost-effective programs, as well as custom-ized advertising services.

awgadvertising.com


• Branding and Visual Identity - Brand Identity - Brand Positioning - Brand Voice - Campaign Development - Messaging Strategy - Strategy & Concept

• Marketing Communication - Media Planning & Placement - Print & Digital - Signage - In Store Consumer Communication - Customer Retention

• Interactive Marketing - Content Development - Email Marketing - Social Media - Strategy Development - Web Design & Development - Online Shopping

AWG Advertising / Marketing ServicesAWG Advertising / Marketing Servicesi

BRAND IDENTITY

SOCIAL & DIGITAL MEDIA

PROFESSIONAL PHOTOGRAPHY

WEBSITES ONLINE SHOPPING

CRM Customer

Relationship Management

REBATE PROGRAMS

CUSTOM WEEKLY PRINT

ADS

DIGITAL MEDIA MONITORING

GRAPHIC DESIGN AND

PRINT SERVICES

TEXTILES

ELECTRONIC MEDIA


BLEACH 08 FT KC CP

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The Shelf Management Department works directly with Category Management to improve retail category sales and ROII (Return on Inventory Investment). Category plans and plan-o-grams are developed using the latest in syndicated data and con-sumer information.

We offer a wide variety of plan-o-gram sizes in virtually every category to fit most configurations.

Plan-o-grams are available through AWG Retail Connection (ARC) web site.


Shelf Management

REPORTINGAWG now offers three ARC Category Sales reports: • Members Speed to Shelf Report• Discontinue Substitute Item Report• Item Conversion Report

NEW ITEM PRESENTATIONNew item information is available weekly through AWG ARC, or can be emailed if member email address is provided.AWG - KANSAS CITY

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Members Speed to Shelf Report 04/15/12Start Date:

05/23/12Stop Date:

94KC Total76SPG Total79OKC Total

73Memphis Total80Nashville Total

439Grand TotalFort Worth Total 37

UPC Stockcode Long Description Dept OBISize

Projected First Order Date Division DistributionSTS RankingItem StrategyCsPk CsCst SRP

4/16/2012 KC SPG OKC ME NVDistribution = "X"

Conversions = "C"FW

000002740010320 488138 SHED CNTRY CROCK QTR 16 OZ Grocery - Dairy 55205 C C C C CIMAGE ENHANCER20 $25.92 $1.79 Days C

4/21/2012 KC SPG OKC ME NVDistribution = "X"

Conversions = "C"FW

000002100003895 466117 KR SHRD CHDR P5.99 32 OZ Grocery - Dairy 56299 X X X X XTRAFFIC BUILDER 1412 $65.57 $5.99 Days X

000002100003935 140357 VEL QUESO BLNCO SHRD 8 OZ Grocery - Dairy 56174 X X X X XPROFIT GENERATOR 1412 $18.66 $2.29 Days X

000002100003936 140359 VELV PPR/JACK SHRED 8 OZ Grocery - Dairy 56174 X X X X XPROFIT GENERATOR 1412 $18.66 $2.29 Days X

000002100003981 140355 VEL QUESO BLNCO SNGL 12 OZ Grocery - Dairy 55442 X X X X XPROFIT GENERATOR 1412 $18.69 $2.29 Days X

000002100061505 288144 KR MAC & CHS TOPPING 3 OZ Grocery - Dairy 56167 x N/A N/A N/A N/APROFIT GENERATOR 2124 $30.91 $1.89 Days N/A

000002800020418 200555 NESCAFE MEMENTO CRML 8 CT Grocery - Dry 33413 X X X X XIMAGE ENHANCER 216 $18.13 $3.99 Days X

000002800037276 200554 NESCAFE MEMNTO MOCHA 8 CT Grocery - Dry 33413 X X X X XIMAGE ENHANCER 216 $18.13 $3.99 Days X

000002800080137 200553 NESCAFE MENENTO CAPP 8 CT Grocery - Dry 33413 X X X X XIMAGE ENHANCER 216 $18.13 $3.99 Days X

000003663203221 399115 DAN OIKOS KEY LIME 5.3 OZ Grocery - Dairy 54762 x x x x xPROFIT GENERATOR 1412 $11.25 $1.45 Days x

000004720015259 333512 CHALLENGE BTR SPREAD 15 OZ Grocery - Dairy 55253 X N/A N/A N/A N/APROFIT GENERATOR 148 $19.92 $3.69 Days X

000004720015264 333516 CHALLENGE BUTTER QTR 16 OZ Grocery - Dairy 55252 X N/A N/A N/A N/APROFIT GENERATOR 1418 $49.46 $4.19 Days X

000004720015266 333514 CHALLENGE UNSALT BTR 16 OZ Grocery - Dairy 55252 X N/A N/A N/A N/APROFIT GENERATOR 1412 $32.98 $4.19 Days X

000004800010702 100079 COS BRST SRDN MEDTRN 3.75 OZ Grocery - Dry 18768 X X X X XPROFIT GENERATOR 1412 $19.17 $2.19 Days N/A

000004800010704 100082 COS BRS SRDN OLV OIL 3.75 OZ Grocery - Dry 18769 X X X X XPROFIT GENERATOR 1412 $21.56 $2.49 Days N/A

000007024221110 225235 RED D FAM SZ TEA BAG 24 CT Grocery - Dry 33580 N/A X X N/A N/AIMAGE ENHANCER 1412 $21.26 $2.29 Days N/A

000007056092350 250144 PCTSWT CUT CORN 5 LB Grocery - Frozen 60655 N/A N/A N/A N/A N/ATRANSACTION BUILDER 146 $35.15 $8.79 Days X

000008425327117 428144 RICE DREAM DRNK ORIG 64 OZ Grocery - Dairy 55097 N/A X N/A N/A N/APROFIT GENERATOR 146 $15.08 $3.69 Days N/A

Monday, April 23, 2012 Page 1 of 8

Members Speed to Shelf Report


Shelf Management(Continued)

AWG’s Member Services department is staffed with experienced professionals who can help you with all of your operational, advertising, and marketing needs.

BUSINESS AND OPERATIONAL COUNSELORSExperienced professionals are assigned to your store location at no charge. Your team will generally consist of a District Manager, Ad Coordinator, AWG Brands specialist, and perishable department Field Specialist.

NEW MEMBER SUPPORTAll divisions have a Retail Development Manager whose goal is to strengthen the base of our organization and to increase both the size of our trade area and our market share within our trade area. This individual is responsible for new members and will also assist current members.

The AWG Electronic Price File Hosting System allows you to retrieve item file maintenance directly from the AWG FTP systems with your on-site computer. You can review, organize and save to a database.

Other types of information sent to the AWG FTP Host Files include deals and allowances, and TPRs (Temporary Price Reductions).

• Retail Price Changes• Unit Cost Changes• New Items• Discontinued Items• Store Scanning File Comparisons to AWG & VMC Pricing

Member Services

Electronic Price File Hosting


AWG affords you the flexibility required to operate in today’s competitive market by provid-ing you with the ability to control your AWG retail price files.

HOUSE & CUSTOM ZONES AWG supports multiple pricing zones providing our members with grocery, frozen, dairy, and processed meat margins based on a defined retailer margin need. The maintenance of these zones is based on item strategies, competitive information, vendor cost changes, and our professional pricing experience. Or, AWG members can choose to maintain their own retail pricing with a custom zone, that can be based on a House Zone but modified to meet the individual retailer’s needs.

REPORTS• Percentage Proof Lists • R.I.N.G.• Weekly Change List and NEW ITEM reports• Temporary Price Reduction (TPR) Reports ELECTRONIC RETAIL PRICING SUPPORT It is imperative that the shelf tag price, scan file price, marked item price, and your AWG item file prices are the same. AWG Electronic Retail Pricing Support provides the mechanism for insuring that these prices are the same and that your customer pays the correct price for the items sold in your store.

ELECTRONIC COMMUNICATION TO STORES We offer electronic communication to our stores via ARC, an internet-based connection that allows AWG to communicate important information to our stores. With ARC, invoices are available to the store before the truck leaves the warehouse. On-line credit requests, order guides, weekly change lists and weekly statements are also available. All general news announcements, security alerts, and recall notices are posted on ARC. New item information is hot off the Category Manager’s desk with on-line ordering for all grocery, frozen and dairy items. You can also use the Item Catalog Query to look up items in a commodity/sub-commodity grouping or you can look it up by UPC code.

Pricing Programs$


The purpose of the Retail Business Solutions department is to assist you in improving your bottom-line profitability through the selection, implementation, and utilization of automated retail systems.

Your goals can be achieved by utilizing AWG Retail Systems services including:• Professional consulting• Project management and coordination• Implementation, training and support consultation• Customized price files, reports and shelf labels• Electronic retail pricing support systems• Preferred and tested retail systems solutions• A special leasing program with preferred vendors• Need evaluation and system selection

In today’s rapidly changing and confusing retail systems environment, AWG can offer you a single source for all your retail systems needs.

PARAGON PARTNERSHIPParagon Partnership is a joint venture between AWG and progressive retail vendors in the arena of Information Technology. Vendor participants are:• IBM• NCR• BrData• Invatron - scale management• Pangea - sign and label printing software• Netsurion - provides affordable and reliable security

solutions• First Data - one of the world’s largest providers of

merchant Electronic Funds Transfer processing services

Retail Business Solutions

“This program will give AWG members

the cutting edge information

necessary to capture new customers, drive

sales and increase margins.”



Retailers who participate in the Paragon Partnership with AWG have access to a variety of AWG supported programs for both IT support and store employees. These include:

• AWG Retail Connection (ARC) - Internet Based Information Source

• SafetyNET- A total network security solution.

• ntouch Pricing System- Access to pricing via the Internet offers a wealth of information at your fingertips.

• ntouch Ordering System- Enhanced ordering application that provides SMART ordering information in a high-speed broadband environment.

Retail Business Solutions (Continued)

AWG is focused on being “Ntouch” with the needs of our retailers and finding solutions for the business challenges they face everyday. Ntouch is a suite of services offered to AWG member retailers, providing solutions in diverse areas. Today, Ntouch covers the important areas of Pricing, Data Security, Print Solutions, Ad Planning and Scan programs.

PRICING - Ntouch pricing was launched in 2009, addressing AWG members’ and associates’ need to manage their pricing using a web-based process. This application supports AWG house zones, custom pricing, real-time information, warehouse item visibility, item movement, deal information and provides convenient access from anywhere.

PRINT - AWG has partnered with Pangea to work with our members on retail print solutions. This resource provides printing of tags, shelf markers and ad signs as well as many other retailer needs. Retailers have the ability to go online to view, edit and custom-order their in-store signage. One additional benefit is the option to have a dedicated printer installed in-store for everyday use. As part of the in-store solution, the printer and toner are provided at no cost; stores pay for tag or sign inventory and a minimal click charge.

SAFETYNET - SafetyNet, powered by Netsurion, was launched to address the increasingly important issue of data security. This PCI (Payment Card Industry) compliance solution is designed to protect your network, your business and your customer’s credit card

information. Netsurion offers a security guarantee through TrustVault against data breach.

AD PLANNING - In 2013 AWG searched for a new ad-planning solution to replace the outdated technology then being used. AWG partnered with Aptaris to fulfill that need. The new multifunctional ad-planning system incorporates many previously unavailable features. The ad planner will not only build an ad or TPR (Temporary Price Reduction) program, but also handle the billing, pre-booking, in-store signage program, ad layout, ad calendar and data mining features. It began as a solution for the existing in-house ad groups and is now available for all members to utilize.

AD SCAN - As part of the Ntouch ad-planning program, AWG has added this additional benefit in 2014. Retailers using the program are now able to eliminate handling the paper scan process. AWG has partnered with RDS/DSI, providing the ability to process all scans electronically through the ad program. This will enable stores to reduce the amount of time and resources needed to process and monitor accounts receivable on scans from vendors.

WEB-BASED SALES ORDERING - AWG web-based sales promotions are sales, specials, and discounts offered online. We have designed a variety of programs and services to give you the best opportunity to better your bottom line.• Web-Blasts - limited time deals• Web-Selling Events - on-line book events• VMC Digital Opportunities - special events• Ecomm - Promotional, signs, textiles, & more

ntouch Retailer Solutions

New Member/New Store Incentive

OPENING INVENTORY PROGRAMAWG will pay interest costs to qualifying new and existing retail members for product shipped from AWG and VMC warehouses to a new store opening or an expansion of an existing store. The member can choose one of the three options listed below.

1. AWG will pay the member an interest check. The interest amount may be based on the new or expanded store square footage or actual inventory delivered to the store. A check for the calculated interest amount will be sent 100 days after the first delivery from AWG.

2. AWG will allow the payment of the opening inventory to be deferred until the end of 100 days from the first delivery. At the end of the 100-day period, the opening inventory must be paid in full. Adequate collateral is required if this option is selected and this option requires Finance Committee approval prior to the first order being shipped.

3. AWG can provide inventory financing. If such financing is for a new store (just built or pre-viously empty) or the expansion of an existing store, AWG may make a loan to include a 100-day interest and principal free period. Adequate collateral is required if this option is selected and this option requires Finance Committee approval prior to the first order being shipped.

Associated Wholesale Grocers5000 Kansas Avenue • Kansas City, Kansas 66106

associated wholesale grocersawginc.com/awg resource guide 3.7.2018_2.pdfprovide some capital to...

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