Associated Grocers of Maine (AGM), a central Maine-based food distributor serving over 300 grocery and convenience stores, was placed into receivership April 26, leaving some local store owners scrambling to find new distributors and keep their shelves stocked, while consumers were left to wonder about the fate of their favorite local grocery stores.
AGM currently owes over $6 million to Savings Bank of Maine, and a statement posted on AGM’s website by the court appointed receiver said, “This decision was not made lightly in view of the impact it would have on the company’s employees, vendors, customers and shareholders.”
While one local grocer called the situation a “nightmare,” others have felt little or no direct impact from AGM’s closure.
One local store that has not felt any impact from AGM’s closure is Yellowfront Grocery, one of Damariscotta’s oldest family run businesses and Lincoln County’s largest independent grocer.
Yellowfront, which will celebrate its 90th anniversary in June, switched from AGM to Associated Grocers of New England (AGNE) in December.
AGNE is not affiliated with AGM, and a statement recently released by AGNE said, “Both companies, along with other distributors, do sell Shurfine store brand products…but AG New England is a separate company and our ownership and operations are not affiliated in any way with Associated Grocers of Maine.”
Asked the reason for Yellowfront’s recent switch to AGNE, co-owner Jeff Pierce said of AGM, “they were great and offered great service, but they’d changed quite a bit in the past few years. We were moving in a new direction, adding more organic and natural foods and they had cut back on the products available. We needed more variety.” Pierce said.
Yellowfront is one of approximately 50 Maine grocers that have made the switch to AGNE. “We’re really happy with AG New England,” he said. “Our prospects look good. “
Pierce said Yellowfront will continue to use other distributors in addition to AGNE, including Pine State and Bozzuto’s. They will also continue to offer a wide variety of local meat, fish and produce, including local lobster, steamers, fiddleheads, rhubarb, tomatoes, cucumbers, squash, corn, apples, smelts and scallops.
Asked about competition from larger supermarkets, Pierce said the entire food market is much more competitive now, but that he does not view himself as being in direct competition with stores like Hannaford.
He referenced his ability to buy local produce on the spot from local growers and said, “We offer our customers a unique experience.”
Pierce said one of the best things about running a local independent grocer is, “getting to know the people. We know our customers so well. It’s so great having such a loyal customer base. They’re more than customers, they’re friends. We want people to feel welcome, and have a great time shopping here.”
Pierce said he’s heard from a lot of customers who are concerned about whether Yellowfront will have to close in the wake of AGM’s closure.
“We want people to know we’re not in danger of running out of product or closing, we’re fine,” he said.
Another local grocer that has not felt any direct impact of AGM’s closure is The Whitefield Superette, which switched to AGNE several years ago.
Hanley’s Market in Bristol, however, had only joined AGM in November. Owner Greg Hanley said he “kind of had a feeling something was going on” before he learned of AGM’s closure, and thus was able to immediately make the switch back to his former distributor, Pine State. In fact, Hanley said the store only went one day without a delivery of produce.
Reggie Reilly of Reilly’s Market in New Harbor, who used AGM as his primary distributor, said he learned of AGM’s closure from a fellow grocer, and is now working to make the switch to AGNE. Reilly says he anticipates having shelves fully stocked within a few weeks, in plenty of time for the busy summer season.
Attempts to reach Jefferson Village Market owner George Humphries, who also serves on AGM’s board, were unsuccessful. Meanwhile, AGNE has already begun hiring former AGM employees, and a statement released by AGNE said, “We have been working with a number of Maine retailers and will begin supplying a number of stores immediately.”
