Why This Matters to Distributors: Automation is becoming a core investment priority across distribution sectors as operators seek to improve accuracy, labor efficiency and resilience while maintaining service levels.
Associated Wholesale Grocers Inc., the nation’s largest cooperative food wholesaler serving independently owned supermarkets, plans to invest $110 million to modernize its Gulf Coast distribution center in Pearl River, Louisiana.
The project will add advanced automation to the facility’s ambient operations to improve product selection, order accuracy, and throughput. AWG said the upgrades are intended to support current operations and future growth while improving service reliability for member retailers across the Southeast.
The company will retain 334 employees at the site and said the investment will include workforce upskilling tied to new automation and technology systems.
“AWG has chosen to make a strategic investment of over $110 million in our current Gulf Coast facility,” says Richard Kearns, executive vice president of distribution and logistics.
The Pearl River site serves as AWG’s Gulf Coast Division Support Center, its largest conventional grocery division. AWG supplies more than 1,100 member companies operating at about 3,500 store locations across 33 states.
Louisiana officials said the state offered a $500,000 performance-based grant to support infrastructure and equipment upgrades tied to the project.
Construction is expected to begin in January 2027, with installation of automation systems scheduled for April 2027 and operations slated to begin in November 2027.
AWG said the upgrades are also designed to improve the facility’s ability to operate during severe weather, a key concern for Gulf Coast supply chains.
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