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IGA announced that it is granting a distribution license to Associated Wholesale Grocers (AWG) of Kansas City, which currently services 1,400 stores in 20 states.

IGA said that through AWG it will be able to replace much of the distribution lost with the bankruptcy of Fleming.

The four AWG distribution centers licensed by IGA will be Nashville, Southaven, Springfield, Mo., and Oklahoma. Immediately, IGA product is being placed in the Nashville facility.

“Unfortunately, we cannot make up for the disarray IGA Retailers suffered with bankruptcy of a major licensed distributor, which meant the loss of our supply to 40 percent of our stores,” said Thomas S. Haggai, chairman and CEO of IGA. “However, I am enthused and strongly encouraged that this company I have known for decades, since my earliest friendship with their former president the late Lou Fox, will now have the energy to reclaim Mid-America, a historically major geographic area for our 78 year-old corporation. More than that, AWG will introduce IGA to previously uncharted areas of the country, leading to the induction of new stores to the IGA Family.”

“AWG is extremely proud to have the opportunity to become a member of the IGA Family,” said Steve Dillard, vice president of corporate sales development. “By offering the IGA concept to our members, AWG will be able to recommend IGA’s outstanding banner to many retailers who are contemplating a change in their store format. We look forward to growing our businesses together.”
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