Welcome AWG Vendor Partners Tye Anthony VP Division

Welcome AWG Vendor Partners

Tye Anthony VP, Division Manager

Dan Funk Executive Vice President Merchandising & Marketing

Why Choose Us? We provide quality merchandise and superior support services for every retailer. Our Vision Our vision is to be the most retailer-focused and highest performing member-owned food wholesaler. Our Mission Our 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.

Our Simple Business Model We make it easy for our retailers Our Members Prosper

AWG Strategic Initiatives for Growth Same Store Sales New Stores Geography Store Territory Remodels Expansion Strategic Growth VMC Always Fresh Chicago Satellite Office

2016 NET SALES $9. 5 CONSOLIDATED (BILLIONS) $8. 93 $8. 94 2015 $9. 18 $9. 0 $8. 38 $8. 5 $7. 85 $8. 0 2012 $7. 5 2013 2016

Eleven distribution centers with $10+ Billion in sales. Active prospects sales potential across all distribution points projected at 3. 467 billion dollars. Kenosha Kansas City Added in 2016 Original Location Norfolk Added in 2016 Fort Scott Added in 1995 Nashville Added in 2003 Springfield Memphis Added in 1938 Added in 2003 Oklahoma City Southaven Added in 1995 Fort Worth Added in 2007 Added in 2003 States with divisions States with AWG distribution States without AWG distribution Gulf Coast Added in 2013.

Great Lakes Division ________________________ Kenosha, WI 90 th Anniversary – Associated Wholesale Grocers, Inc.

Mark Harvey Executive Director Category Sales

CHICAGO MARKET UPDATE • New store tagging activity continues heavily in the Chicago market area • New business will be serviced from our Kenosha WI facility • New stores – – – – Pacemaker, Countryside Markets Sullivan’s Foods Dave’s Supermarket Treasure Island Foods (European Markets) Tony’s Finer Foods Caputo’s Spring Valley 3 Stores 12 Stores 1 Store 7 Stores 15 Stores 8 Stores 1 Store

CHICAGO MARKET UPDATE • New stores cont. – – – – Pete’s Fresh Market West Lawn Market Grand Food Center Walt’s Food Center Remington IGA D & R Fruit & Meat Market Murphy’s Food King Berkot’s Super Foods Art’s Super Mart, Inc. Gray’s Foods Wise way Foods Torres Fresh Market Supermercado Torres Berkley Finer Foods 11 Stores 1 Store 2 Stores 7 Stores 1 Store 11 Stores 1 Store 2 Stores

CHICAGO MARKET UPDATE • A new Sales/Operations office will be opened in Chicago under the leadership of Sonny Leon – – – Will operate as a Satellite office and report through Kenosha Field support for Chicago market will remain Ad Coordination of Chicago Performance group Local, incremental item negotiations Hispanic business support

PRODUCT UPDATE • Item selection – Matched items copied from AWG divisions – Unmatched item set-up determined by Chicago market specific data

STORE TAGGING Week 4/9 -4/15 4/16 -4/22 4/23 -4/29 4/30 -5/6 5/7 -5/13 5/14 -5/20 5/21 -5/27 5/28 -6/3 Number of Stores Status 3 Complete 20 Complete 24 In Progress 24 24 10

STORE TAGGING SUPPORT • Four Tagging Teams • 20 people per team • We Need Tagging Support! – Please let us know today what help you are able to provide over the next few weeks.

Bo Hawkins Vice President Corporate Meat

• Meat PERISHABLES – All ad information/projections go to Kenosha Ad Contacts • Bakery/Deli: Marie Voiles, marie. voiles@awginc. com PH: 262 -656 -4245 • Meat: Tyler Lanier, tyler. lanier@awginc. com PH: 262 -656 -4243 • Produce: Michael Grube, michael. grube@awginc. com PH: 262 -656 -4228 – Adding top items for Chicago market • 1, 152 Perishable items (280 Bakery/Deli, 510 Meat/Seafood, 362 Produce/Floral) – Branded Meat procured corporately – Fresh Meat procured at Division – Web Blast, Strategic Sales, Meat Events

PERISHABLES • New Vendor & New Item forms • Deals go through Demand. Tec • Temperature Recorders – Pak. Sense Ultra Wireless recorders required on inbound loads • Managed Receiving registration/appointment scheduling • Product Recalls • Repositrak Compliance Management • Dating standards apply • Aptaris deal – group specific • Information can be found on the AWG website under the Vendor section http: //www. awginc. com/vendors. html

Joe Day Produce Manager II

PERISHABLES • Fresh Produce – Temperature Recorders – Pak. Sense Ultra Wireless recorders required on all inbound Fresh Produce orders – Third Party Audits – All Fresh Produce suppliers required to furnish copies of all Third Party audits annually – Dating Standards apply – ITrade – preferred method of PO communication – Web Blast, Text Blast, Power Buy selling – Corporate Produce Procurement structure

PERISHABLES • Non-Fresh Produce – – All non-fresh deals run through Demand. Tec Dating Standards apply All shippers are prebook only 30 day notice on all price changes

Dan Koch Vice President Deli/Bakery

PERISHABLES • Deli/Bakery/Food Service – – – Procured corporately Deals go through Demand. Tec Dating standards Web Blasts, Promotional Events, Seasonal Events Menu Labeling / Nutrigen New Item Set Up / Slotting

What Do We Need From You • • • Help in managing inventory – Inventory Reports will be sent to each vendor / broker to help monitor and promote sell off excess and communicate concerns Insight into movement on key items, peak selling weeks and holidays Encourage pre-booking for ads Educate us on markets and market conditions Communicate questions, concerns or issues that you and your teams hear while working with the stores

Key Contacts • Marie Voiles Bakery / Deli Sales Manager – 262 -656 -4245 / marie. voiles@awginc. com • Laura Hobbs / Senior Manager of Buying – lhobbs@awginc. com • Dan Koch / VP of Bakery, Deli and Foodservice – 913 -288 -1193 / daniel. koch@awginc. com

Changes to the Norfolk Division • John Highbaugh is the new SVP and Division Manager • Pat Mc. Carthy will the be new Director of Fresh Merchandising • Colleen Burgett is our new Sales Manager for Bakery / Deli and Foodservice – 1 -402 -370 -1247 – Colleen. burgett@awginc. com

Jim Fitterer Director of Sales Super Ad Group

SUPER AD GROUP BY THE NUMBERS Stores 1300+ Sales $3 Billion Warehouse Sales $6 Billion Retail Sales % of Total AWG 30% Ad Groups 25 Ad Coordinators 16 2017 Warehouse Sales +6. 6% SAG Initiatives ü ü ü Lower Cost of Goods Create Merchandising Events Incorporate Shopper Marketing Programs Streamline process and drive efficiencies Strategic Planning – Category & Vendor

SUPER AD GROUP SAG KC SP OK NA ME GC K 100 AD 3 PMG ME 1 GC 1 K 200 AD 5 OKMS IGA ME 2 GC 5 ADV 1 SOLO ME 3 K 300 ETN FW ESTX NE GL NE 01 GL 01 NE 02 GL 03 GL 05 Heartland NE GL KC OK SP

NORTHER REGION AD GROUP STRUCTURE SAG Nebraska Team Center Store Director: Ad Coordinator: Fresh Director: Meat: Produce: Bakery/Deli: Heartland Ad Group: KS) Tim Myers Tom Grosserode TBD Pat Mc. Carthy Jeff Waddingham Jason Anderson Colleen Burgett Bob Gay (Mayetta, Great Lakes Team Center Store Director: Robert Rothove Ad Coordinator : Shannon Sanders Ad Coordinator : Larry Portenier Fresh Director: Danny Deen Meat: Tyler Lanier Produce: Mike Grube Bakery/Deli: Marie Voiles Heartland Ad Group: Bob Gay (Mayetta, KS)

Updates to the SAG: SUPER AD GROUP • NE & GL Ad Groups operating separately • • Ad Coordinators in Norfolk Nebraska Vendor contact & negotiations • New GL 03 Ad Group • • • New members Primarily metro New GL 05 Ad Group • • • New members Primarily metro Groups within the Group • High level of direct vendor contact & negotiations • Customize ads & merchandising activity

GREAT LAKES – NEW AD GROUPS GL 03 & GL 05 Groups in Aptaris Deal Process • Week of 4/24/17 • • • All current GL 01 approved & pending deals copied into GL 05 Includes all AWG Corp and SAG offers Additional Chicago market offers being added Vendors include GL 05 on all new deals entered into Aptaris Week of 5/15/17 • • • All current GL 05 approved & pending offers copied into GL 03 Vendors include GL 03 & GL 05 on all new deals entered into Aptaris Both groups are active

TRADE & EVENT MANAGEMENT SOFTWARE

TRADE & EVENT MANAGEMENT SOFTWARE

Dan Funk Executive Vice President Merchandising & Marketing

VENDOR EXPECTATIONS • Promotions – All new stores will follow AWG deals and event schedule – Food show deals will be honored • Stores will receive net billing and vendors billed back where necessary • Transition fees – A Transition fee of $300. 00 per SKU, per division will be applied to new items set in GL & VMC.

VENDOR EXPECTATIONS • Trade Dollars – Ensure all trade dollars follow the cases – What promotional dollars remain against Chicago based business? – Are trade rates different? What do we gain? – Promotional Calendar for 2017 – Unique items/promotions for Chicago market

VENDOR EXPECTATIONS • Representation – Continuity of coverage is imperative – Chicago based business must have no disruptions to coverage personnel – NO changes to Broker coverage • Any conflicts must be discussed with AWG management prior to any changes being made – Please send Coverage plan to AWG

SUMMARY • Great Lakes poised to become next Billion $ division • AWG continues to focus on growing the independent grocer • AWG continues to build strong partnership with Vendor/ Manufactures & Members • Leverage size & scale to drive efficiencies • AWG will be over $10 Billion at Wholesale / over $ 20 Billion at Retail

Thank you for your continued support

Tye Anthony VP, Division Manager

Q&A