Long-Time Affiliated Foods' Executive Announces New Plans

For fifty-seven years, Affiliated Foods Midwest (previously General Wholesale) and Virgil Froehlich have been virtually synonymous. In a joint statement, Froehlich, who has served as Affiliated's Chief Executive Officer for several years, announced his plans to retire effective January 1, 2004.

"This is a milestone step in my life," stated Froehlich. "I think I have more to offer the industry, but Affiliated needs to complete the transition to a new leadership team, and build on its strengths for its long-term future. I hope to be able to help, but I will clear the way for President Martin Arter's continuing growth."

Froehlich has been a distinguished member of the Nebraska Chamber Business Hall of Fame, a recipient of prestigious awards from The National Grocers' Association, and other national Industry groups. Froehlich is a "universally known figure in the American grocery industry" said Marc King, Affiliated's Board Chairman. Mr. Froehlich has taken a very active role in the Norfolk community and served on several local boards and state associations. These range from his service as President of the Norfolk Chamber of Commerce to a Director with the National Grocers Association in Washington, D.C. Mr. Froehlich has been President of Shurfine International, a Cooperative supplier to warehouses like Affiliated Foods Midwest, and served on the Board of Directors of Topco Associates L.L.C, a major vendor of groceries to the nation's grocery wholesale industry. Froehlich is also the founder of the new program "P.I.E." (Partners, Investors, Equity), the new arm (strategy) for promoting Affiliated Foods Midwest's tradition of success and excellence.

During Froehlich's twenty-seven years as Affiliated's senior executive, the company grew from a local grocery wholesaler serving fewer than 200 stores, to a ten-state, 800 plus store, retailer-owned cooperative. Affiliated Foods Midwest is among the nation's 20 largest wholesalers of food products to retailers.

"I have watched many distribution warehouses come and go over the years." He notes, "There seems to be no end to changes in the industry. This change, for me, comes at a good time for Affiliated, and a good time for Betty Jane and I to spend time with our family and to enjoy time together."

Froehlich said he expects Affiliated to keep growing, and hopes to be able to help when asked from time to time. He expressed "complete confidence in Affiliated's new management, and great optimism" for the future of cooperative buying and selling by retail grocers in the Midwest.

Martin Arter, Affiliated's President and Froehlich's successor said, "Virg Froehlich has been a remarkable mentor, and a wonderful partner in the course of my work as I fill Virg's shoes. I am excited about our company's future prospects, and I am eager to meet the challenges that lie ahead, knowing that Virg will be my constant supporter as we go forward."