FOR-PROFIT SUBSIDIARIES BOOST DISTRIBUTION

Affiliated Food Stores operates several for-profit subsidiaries that help generate money to support the company's distribution operations and provide services to member stores. In addition to the company's supermarket distribution division and its retail operating subsidiary, Supermarket Investors, other AFS subsidiaries include:utes some 20,000 stockkeeping units of product to about 700 convenience

Affiliated Food Stores operates several for-profit subsidiaries that help generate money to support the company's distribution operations and provide services to member stores. In addition to the company's supermarket distribution division and its retail operating subsidiary, Supermarket Investors, other AFS subsidiaries include:

utes some 20,000 stockkeeping units of product to about 700 convenience stores in the South-Central region. This operates out of the warehouse that was acquired with Harvest Foods in 1997.

Southwest Food Service, which supplies the product needed to offer prepared foods to convenience stores, restaurants and other institutions.

Southwest Grocers Insurance, which issues insurance policies for supermarket operators through St. Paul Insurance, St. Paul, Minn.

Shur-Valu, which develops continuity and promotional programs for AFS members. This also handles such areas as coupon redemption and production of in-store music and advertising.

Produce Pre-Pak, which purchases potatoes directly from growers by the truckload, and then grades, packages and ships them daily.