Kansas City, Kan.-based Associated Wholesale Grocers plans to expand next year with a new full-line wholesale division in the Upper Midwest, its ninth overall.
The new division will serve St. Cloud, Minn.-based Coborn’s – which has agreed to make AWG the primary wholesale supplier for its 59 stores – and other cooperative members in Minnesota, North Dakota, South Dakota, Iowa and Wisconsin, according to a news release.
“We are excited to embark on this new partnership with AWG and to be a part of their plans to expand into Minnesota,” Chris Coborn, chairman, president and CEO of Coborn’s, said in the release. “This partnership provides Coborn’s a strong wholesale partner and positions our company well for future long-term growth and stability. As an employee-owned company, we are proud to join the AWG co-op which allows us to continue to serve our guests in a remarkable way.”
AWG will begin supplying Coborn’s in January, with grocery products coming from a facility in St. Cloud and fresh and frozen products temporarily shipping from AWG’s Nebraska and Great Lakes divisions.
AWG plans to build a fresh and frozen warehouse later in 2022 that will have more than 650,000 square feet of space. Ultimately, the company expects to have a single high-tech facility to serve the region. That facility could be as large as 1 million square feet, depending on retail demand.
The new Upper Midwest division will provide retailers in the area a more localized assortment, lower cost of goods and significant savings through reduced freight expenses, according to the release. The division will be overseen by senior vice president Danny Lane.
AWG president and CEO David Smith noted that Coborn’s is one of a number of “extraordinary” independent grocers in the Upper Midwest.
“We have experienced strong growth in this region, but distance and distribution costs weren’t favorable for our members or us,” Smith said. “We believe this new division will be a game-changer for grocers in the area and will quickly become our highest-growth division.”
AWG’s other divisions are in Kansas City, Kan., Springfield, Mo., Oklahoma City, Southaven, Miss., Goodlettsville, Tenn., Pearl River, La., Kenosha, Wis., and Norfolk, Neb.