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awgsalesTHE AGGREGATION AND TOTALITY OF OUR PROGRAMS ALLOW OURRETAILERS TO COMPETE AND BE SUCCESSFUL.Low Cost of GoodsVendor ParnershipsCOMPETE focuses onsome of the issuesfacing retailers andguides you to themyriad of servicesand programsavailable to AWGretailers to helpkeep costs undercontrol, keepsales performingwell and keepyour businessprogressing.awg has over 130 districtsales managers and freshdepartment specialists in thefield supporting our salesprograms and initiatives.6At AWG we have a comprehensive menu of products, programs and services all gearedtowards helping our member-retailers compete in today’shighly competitive marketplace. It is not one program thatdefines AWG nor thatprovides the “secretsauce” for success, butrather the aggregationand totality of our programs that allows our retailers to compete and besuccessful.We constantly strive toimprove the design, execution and effectiveness of ourprograms. Member-retailerfeedback from the front lineshelps us evolve and curate programs that achieve success. Intoday’s environment, the mostnotable of our programs arethose programs that add value,not only to our member-retailers, but also to the consumer.To ensure our members remainup to date on all of the programs and services we offer tohelp them remain successfuland competitive, we starteda quarterly publication calledCOMPETE. This magazineprovides our members withcurrent industry trends, bestpractices from within our membership and continual updateson the services, support andsolutions provided by AWG.Our two most recent issueswere titled “Under Attack, TheIndependent Grocer: Caught inthe Crosshairs,” and “The Operating Cost Issue,” containingtimely industry benchmarkingand cost cutting strategies.March 2018 witnessed ourfirst-ever Innovation Showcase.This special event brought together over 1,000 of our owner-members, leaders from ourtop vendor partner companiesand industry experts to discussthe now and future of our industry. At this event we showcasedmore than 200 innovative solutions and over 50 concurrenteducational opportunities.

salessupportOUR SUPPORT TEAM IS ALIGNED AND ENABLED TO DEVELOP,DELIVER AND MAINTAIN A COMPETITIVE ADVANTAGE FOR OURMEMBERS SO THEY CAN COMPETE FAVORABLY IN THEIR MARKETS.Our AWG Sales Support teamis a centrally-managed groupof functional areas and departments that are focusedon delivering sales support todivision teams and our member-retailers. These supportfunctions range from advertising and marketing support,creative marketing services,digital, in-store marketing andsocial media services, customer loyalty programs, shelfspace optimization strategiesand plan-o-gram support, andmuch more. Our support teamis aligned and enabled to develop, deliver and maintain acompetitive advantage for ourmembers so they can competefavorably in their markets.To assist with the transformingindustry, we have developeda number of robust programsto help our members compete in the digital arena andomni-channel environment.AWG’s Sales and Support department offers solutions likeour Shopper Engagement Platform (SEP), and our customer relationship management(CRM) program. SEP is an engine that allows our retailers topromote digital offers, collectcustomer data, utilize a uniqueidentifier to allow customersto load digital offers and allowour retailers to track shoppingbehavior and performance. Thisallowsretailersto target shopperswith personalizedoffers, manage variable promotions andrewards programs.We continue to invest heavilyin technology as we roll outStoreFront, our user-friendlyweb portal giving our members and their teams easy access to the information theyneed to operate their businesses. With technology as a focuswhether our wholly-ownedsubsidiary Media SolutionsCorporation, or partneringwith cutting-edge third partytechnology providers, AWGis also able to offer (and justas importantly, support) itsmembers programs. Theseprograms include email, text,mobile apps, new mover programs, in-store audio, graphic design, nutrition programs,online shopping, photography services, digital signage,vendor rebate programs, giftcards, textiles, website designand support, print and traditional media.Online Shopping3099 2242 857 5857Basket size of RewardsshopperBasket Size ofNon-Rewards shopperAvg. basket size differencebetween Rewards andNon-Rewards shopper Basket size of customer whoclipped digital coupon128%Percentage increase inbasket size of digitalcoupon shopper basket vs.average basket322Total stores on AWG’sin-house single loyaltyplatformAWG Advertising and Marketingfeatures more than 70 skilledexperts across all divisions.We provide over 30 differentmarketing programs toengage the consumer7

awgservicesOUR SERVICES TEAM IS COMPRISED OF AWARD WINNINGDEPARTMENTS TO PROVIDE YOU WITH THE SAME QUALITYEXPERTISE AT THE LOWEST POSSIBLE COST.Our innovativelighting team willassist in choosingproducts thatare designed tosave energy,improve thequality of lightin your store,as well as meetsustainabilitygoals.LED lamp retrofits have anaverage 2.5-year paybackand will reduce the lightingportion of the electric billmore than 50%, on averageMore than 20 professionalsserve member retailers’ designand lighting needs every day inevery division8The AWG Services team combines the functions of ouraward-winning departments of Store Engineering, StoreDesign, Store Décor, Décor Manufacturing,Lighting and Design, and the managementand administration of third-party services thatserve our members with facility design, construction, maintenance, remodeling, and other related needs. The Services team providesour members the same level of quality and innovative design, engineering and constructionexpertise as the leading national chains, at thelowest possible cost.AWG provides other support services for our members thatthe chains have at their disposal. These programs include ourreal estate department services for market research, leasenegotiations, site selection and financial analysis. Our StoreEngineering program assists with everything from store planning to equipment and fixture acquisition; our Design andDécor Source Group (DSG) provides market specific interiordesign and production by award-winning interior designers,produced in-house at low costs. Additionally our new storedevelopment program, which is operated by our Super Market Developers subsidiary, develops over 1 million squarefeet of new retail space annually for the benefit of our members and manages new construction projects, eliminating theadded cost of middlemen in the process.

awgsolutionsA GO-TO TEAM PROVIDING AWG’S TECH SOLUTIONS.The AWG Solutions team encompasses retail technology, business solutions and retail pricing, and is our go-to team for variousmember needs which are best fulfilled by AWG or in some casesby third-party providers, especially in the areas of technology.New technology is evaluated by assessing member needs, its impact on the membership and how urgent it needs to get tomarket. Priorities are screened against internal resourcecapabilities and third-party providers to find best-inclass solutions at the best available cost. The teamalso expands on existing offerings, such as retail pricing, to provide value added enhancements beyondthe base program currently provided.Laser-focused on helping members drive same-storesales gains, the AWG Solutions team has recently partnered with dunnhumby, one of the world’s leading dataanalytics companies to help our members analyze advertisingand merchandising activities to create more effective promotionsto drive profitable sales.In 2018 AWG launched a new retail digital experience platformcalled StoreFront. This portal is an advanced technology that isflexible, scalable and cost efficient. More features and functionality are being added this year with the end result to replace allpoints of retail interface with this unified tool. One of the mostexciting features is called MyAisle. This is a completely personalized area that allows users to decide what is the most importantand valuable content to them. StoreFront is hosted in a highlysecure virtual private cloud, using the latest cloud tools and infrastructure. This allows us to dynamically scale the applicationbased on demands and provides our members access to the dataand information they need - when, where and how they want it.Data AnalyticsJust like the namesuggests, Scann-Go lets youscan items thatyou pull off theshelf usingeither ahandhelddeviceprovidedby thesupermarket oran app, and thenquickly checkout ateither a Kiosk or Self Checkoutsystem. AWG has multipleScan-n-Go vendor partners toget members started in thisnew technology.Our solutions team has morethan 20 technicians and staff inthe field serving our membersAWG’s user-friendlyStoreFront portal is aone-stop shop for AWGCommunication &Content. Future plansare to integrateeCommerce for Membersto place orders.9

AVERAGECASE COST 18.09 18.02always savebest choicealways savebest choice 15 18.27always savebest choice 20201620172018 12.63 10 5 12.59 12.59The AWG Brands team isworking consistently to insureour members have the cost ofgoods they need to compete inthe marketplace. Despite 2018’sinflationary environment, AWGBrands was still able to drivedown average case costs shippedto our members.More than 50 sales associatesare an essential part of AWGBrands commitment to ourretailersIn 2018, AWG Brands conductedmore than 3,000 qualitycontrol audits and laboratorytests10awgbrandsTHE AWG BRANDS PROGRAM HAS ONCE AGAIN SET THESTANDARD IN THE INDUSTRY FOR SUCCESS.AWG Brands eclipsed over 1.2billion in wholesale dollars soldin 2018. AWG maintains a competitive advantage for its membersby providing over 5,500 items tohelp enhance profit and sales.AWGBrandscontinues to rankamongst the topin the industry for successof Own Brandssales, variety, and penetration.The AWG Brands program isbuilt on a pillar of quality thatsupports the program. In 2018AWG Brands performed over3,000 quality control audits andtests in the laboratory. Over2,000 items were pulled from retailers shelves for testing in combination with lot testing from oursuppliers. In addition, the AWGBrands team conducted over 20full manufacturing plant audits.These audits ensure suppliers arefollowing our stringent safetyand sanitation specifications.AWG Brands works with suppliers to continuously examinecosts, many times down to thecomponent level of the packaging and raw materials that makeup the final product. This attention to detail ensures the lowestcost of goods for our members ina competitive industry.As we look to the future, changing consumer preferences acrossdemographics will drive manynew opportunities.In 2018AWG Brands launched over 300new items to meet our member’sneeds to service their consumers. AWG Brands is moving tothe forefront of setting price andquality image for retailers withtheir customers. AWG Brandswill continue to give our members the ability to compete in thisnew world through constant newitem development, scrutinizingcosts, and developing efficientand modern packaging.

valumerchandiserscompanyVMC INTRODUCED A NUMBER OF INNOVATIVE ANDON-TREND BRANDS AND PROGRAMS, ALL TARGETEDTOWARDS THE NEEDS OF TODAY’S CONSUMER.Valu Merchandisers Company (VMC) held on to sales throughout 2018 in a very challenging wholesale and retail environment.Despite a number of external disruptors impacting sales, VMCintroduced a number of innovative and on-trend brands and programs such as Blue Buffalo, the fastest growing Super Premium Pet Food brand, CBD, Keto, and Cauliflower (Caulipower)based products along with an expanded Sparkling Water assortment, all targeted towards the needs of today’s consumer.SALESHIGHLIGHTSNatural Organic &Specialty Foods 7.1%VMC Show Sales 11.3%Power Buy Sales 17.2%Customer ServiceSales & Support Calls81,000Dedicated Sales TeamDriving Same Store Sales65 As we look to 2019, VMC’s key focus areas include: Private Label penetration in all key categories Continuing to capitalize on the healthy-lifestyle trends “Back to Basics” retail execution initiative Aggressive promotional plans and spend Lowering cost of goods Introduction of an exciting Wellness initiativeGiven the dynamic nature of the grocery business, VMC remainson the forefront of being trend-forward, retail-solutions oriented,and will continue to leverage all available resources to help ourmembers grow same store sales and profits. We truly appreciateour members’ support and look forward to a successful 2019.MERCHANDISINGHIGHLIGHTSNumber ofplanogram updates140new items in 20187,100incremental promotionalsales 1.1MHealthy snackingcategory growth 34%11

awg excellence awards2018 AWG BRANDS EXCELLENCE IN MERCHANDISINGPHIL’S CASH SAVER - OMAHA, NEBRASKABest Choice IS the right choice!Phil’s Cash Saver relies heavilyon the AWG Brands program tohighlight the concept that youcan Always Save at Phil’s CashSaver.As customers enter the store,they are greeted with a wall ofvalues featuring Always Saveand Best Choice. Ceiling signsand pallet displays in prominentlocations continue to drive thecost savings message.AWG Brands are promoted in alldepartments, including Meat andProduce. The low price conceptis reinforced with merchandis-divisionwinnersStore # 6623 - BUDGET SAVER Marrero, LAStore # 3484 - FOODWISE Pine Bluff, ARStore # 4663 - REHKOPF’S CASH SAVER Nashville, ARStore # 8853 - BENDER’S FOODS Bellevue, IAPhil’s Cash Saver is heavilyinvolved with the local community and promotes the SavA-Label program at every opportunity. Their commitment toAWG Brands resulted in a 32%penetration which is among thehighest in all of AWG!Store # 2851 - ALLEN’S GROCERY Summit, ARStore # 5597 - CASH SAVER Eastman, GAStore # 1307 - INGERSOLL PRICE CHOPPER Des Moines, IA2018 SEAFOOD EXCELLENCE IN MERCHANDISINGHARPS MARKETPLACE - BENTONVILLE, ARKANSASThe seafood department insideHarps Marketplace is always abusy place. Challenged to increase sales, the seafood teambegan exploring options to attract new customers. Theyexecuted their first MassiveSeafood Sale introducing newitems at low prices.During the two-day event, permanent coffin cases were loaded with product purchased forthe sale. Massive Seafood Salesigns were placed next to everypromoted item. A portable icedisplay counter and cases filledwith mountains of whole craw-divisionwinners12ing throughout the store. Located at prime eye level positions,items are flagged with channelstrips, TPR signs and Compareand Save signs highlighting savings over national brand equivalents.fish, tuna steaks, tilapia, salmonfillets and jumbo shrimp wereshowcased in the department.Display bins with heaping pilesof king crab legs, mussels, andoysters in the shell completed the display. Trained teammembers and industry expertswere on hand to engage shoppers and provide cooking tipsand meal ideas.Same day sales exceeded prior year by over 140%, andcustomer count was up 30%!Many shoppers who purchaseditems during the sale are nowrepeat seafood customers.Store # 6780 - rouses market metairie, laStore # 4820 - reasor’s jenks, okStore # 1967 - strack & Van Til highland, inStore # 9251 - henderson’s iga valentine, neStore # 5417 - cooke’s food store cleveland, tnStore # 433 - hen house overland park, ks

2018 CENTER STORE EXCELLENCE IN MERCHANDISINGFAIRPLAY FOODS - OAK LAWN, ILLINOIS2018 was a hyper competitive yearto sell groceries in the city of Chicago. Even with these pressures, center store sales at Fairplay Foods grewover 20% versus prior year, with theentire company enjoying double digitgrowth!Fairplay Foods was quick to learn howto execute the power AWG brought totheir business. Using aggressive WebBlast ads, highlighting AWG Brands,Event Sales, and offering the lowestcost of goods from SOLO purchases,Fairplay converted competitive programming into increased sales acrossthe center store.divisionwinnersStore # 6727 - Market Basket Moss Bluff, LAStore # 3138 - Grocer’s Pride Houston, MSStore # 4008 - Crest Foods Oklahoma City, OKStore # 9661 - Super Saver Lincoln, NEWith a new strategy to “Market andMerchandise to the Masses,” complete store resets positioned the centerstore for increased sales.FairplayFoods ‘fixed the mix’ utilizing AWGcategory optimization tools and alsoupdating adjacencies within storesets. Fairplay focused on trading customers up with larger packs, multiplesale combinations and higher qualitymerchandise. They focused on sellingmore and improving assortment. Fairplay’s strategic direction positivelycreated sustainable center store salesgrowth!Store # 2753 - G & W Foods Iola, KSStore # 5852 - Food Giant Parsons, TNStore # 711 - Brother’s Market TONGANOXIE, KS2018 DELI EXCELLENCE IN MERCHANDISINGRALPH’S MARKET - GONZALES, LOUISIANARalph’s Market recognized the needand developed a plan to meet the increasing demand for high quality,unique prepared foods.Ralph’s deli features fresh baked pizza, corn and crab bisque, duck andAndouille gumbo and crawfish boilsoup. The salad section is always absolutely fresh and impeccably maintained. They also offer a selection ofsmoked items like ribs, chickens, andpork butts.Ralph’s has developed a large clientele for its self service hot bar whichdivisionwinnersincludes fried frog legs, crawfish bowtie pasta, pastalaya, and southernfried chicken. A signature item, friedcatfish, is a customer favorite!The grab-n-go case is stocked withKajun Krab dip, southern style potato salad, chicken salad and fruit cobblers. Sandwich trays are availablefor pick up and Ralph’s caters largeparties for any special occasion.Fresh, high quality signature deliitems served in a clean friendly storehave resulted in a 20% increase indeli sales.Store # 3752 - Greenwood Market Place Greenwood, MSStore # 4825 - Reasor’s Tulsa, OKStore # 8148 - Richter’s Marketplace BURLINGTON, WIStore # 9029 - Sunshine Foods Madison, SDStore # 2704 - Country Mart St. Clair, MOStore # 5176 - Pruett’s Market Signal Mountain, TNStore # 171 - Cosentino’s Price Chopper Lee’s Summit, MO13

2018 FLORAL EXCELLENCE IN MERCHANDISINGREASOR’S - BROKEN ARROW, OKLAHOMAThe Floral department at Reasor’s isuniquely designed to WOW customers. Colorful flowers line the entryand set the tone of freshness for theentire store. Large displays of designer grab-n-go bouquets complimentthe seasons and stimulating impulsesales.Reasor’s makes any occasion specialfrom handcrafted special orders forthe bride, anniversary bouquets, memorial service arrangements, Thanksgiving and Christmas centerpiecesand special arrangement requests.available throughout the year. Theever popular outside S

Alan McKeever McKeever Enterprises, Inc. Independence, MO Randy Stepherson Stepherson, Inc. Memphis, TN Victor Cosentino Cosentino Enterprises, Inc. Prairie Village, KS Chuck Murfin Ozark Supermarket, Inc. Ozark, MO James Neumann Valu Discount, Inc. Mt. Washington, KY Alan Larsen Houchens Food Group, Inc. Bowling Green, KY Kim Eskew Harp's Food .