Podcast Summary: The CPG Guys – "Center Store Grocery Merchandising with Wakefern's Jeff Mondelli"

Release Date: May 7, 2025

Hosts: Peter V.S. Bond & Sri Rajagopalan Guest: Jeff Mondelli, Vice President of Grocery Merchandising at Wakefern Food Corp.

Introduction

In this episode of The CPG Guys, hosts Peter V.S. Bond and Sri Rajagopalan engage in an insightful conversation with Jeff Mondelli, the Vice President of Grocery Merchandising at Wakefern Food Corp. The discussion delves into Jeff's unique career journey, the evolving landscape of grocery merchandising, consumer behavior shifts post-pandemic, the impact of tariffs, the significance of retail media, and the future of brand-retailer partnerships.

Career Journey and Transition from Pharmacy to CPG

Timestamp: 05:34

Jeff Mondelli opens up about his unconventional transition from a pharmacist to a leader in grocery merchandising. He emphasizes the importance of individual talent, drive, and the support of a conducive environment. Jeff shares:

“It's about the individual, your talent and your drive, but it's as much about the people around you.” (05:34)

He credits his success to a mindset focused on continuous learning, humility, and the willingness to seek honest feedback from his team. Jeff highlights the critical role of organizational support in allowing employees to grow beyond their specialized fields.

Changes in Consumer Behavior Post-Pandemic

Timestamp: 08:39

Jeff discusses the profound changes in consumer shopping behaviors following the COVID-19 pandemic. He outlines four major shifts:

1. Supply Chain Resilience: The pandemic underscored the importance of reliable supply chains. Jeff notes how the focus shifted from efficiency to ensuring product availability.

   “It was not about the bells and whistles. It was about do you actually have what I want and need.” (08:39)

2. Omni-Channel Shopping: Consumers developed a preference for shopping across multiple channels to avoid crowds and save time. This behavior is now ingrained, requiring retailers and brands to offer seamless omni-channel experiences.

3. Hyperinflation Impact: Rising inflation strained consumers' budgets, leading to increased private label purchases and higher promo penetration. Jeff remarks:

   “Private label is certainly continuing to grab traction.” (13:10)

4. Tariffs and Supply Chain Pressures: Ongoing tariff issues continue to affect product availability and pricing, further challenging both consumers and brands.

The Role of Tariffs in Consumer Products

Timestamp: 13:10

Peter V.S. Bond and Sri Rajagopalan delve deeper into the impact of tariffs on everyday consumer products. Using the example of McDonald's French fries, Sri highlights:

“69% of the canola oil we use in the US is actually imported... $1.7 billion of frozen French fries which is what is served in fast food restaurants.” (14:37)

Jeff acknowledges the significant consequences of tariffs on product sourcing and pricing, stressing the need for strategic adjustments by brands and retailers.

Promotional Strategies: Depth and Frequency

Timestamp: 16:19

Sri and Peter discuss the necessity of rekindling basic promotional strategies amidst current market challenges. They argue for straightforward in-store promotions like end-cap displays and clear pricing as opposed to complex digital campaigns. Sri states:

“I want to see an end cap display, I want to see a lobby display, I want to see a shipper and it's got the price point called out.” (16:43)

Jeff concurs, emphasizing the importance of depth in promotions without overwhelming consumers with too many barriers to access.

E-Commerce Evolution and Loyalty Challenges

Timestamp: 18:30

The conversation shifts to e-commerce, where Jeff identifies a critical trend: the fragility of consumer loyalty in a highly competitive digital marketplace. He explains:

“Even a loyal shopper can cheat on you... we've got to find a way to continue to reach customers in a personalized manner.” (18:30)

Jeff underscores the necessity for brands and retailers to foster genuine, personalized connections to maintain and enhance loyalty.

Retail Media: Fact or Fiction?

Timestamp: 19:43

Sri raises the topic of retail media, questioning its effectiveness and role in the current CPG landscape. Jeff responds by reframing retail media as a strategic investment rather than just advertising spend. He emphasizes the need for measurable returns on ad spend:

“There is no CPG in the world that can afford to be flexed on and write a blank check. There's got to be a return on ad spend.” (19:43)

Future of Brand-Retailer Relationships

Timestamp: 22:04

Peter inquires about the evolving balance of power between brands and retailers over the next five years. Jeff predicts that successful partnerships will be those that continue to invest in digital engagement and personalized customer experiences. He states:

“The winners over the next five years are the ones that are going to continue to lean in... reach customers in a personalized way that that win their lion's share.” (22:04)

Joint Value Creation (JVC) vs. Joint Business Planning (JBP)

Timestamp: 24:50

Sri introduces the concept of Joint Value Creation (JVC), advocating for brand-retailer collaborations centered around consumer value rather than rigid business plans. Jeff agrees, highlighting the shift towards continuous planning and mutual accountability:

“What is the cadence of our communication throughout the year?” (25:48)

This approach ensures that partnerships remain dynamic and responsive to changing consumer needs and market conditions.

Leveraging Data and Analytics

Timestamp: 27:14

Peter poses a question on effectively utilizing the vast amounts of data available to CPG manufacturers. Jeff emphasizes the necessity of aligning success metrics between brands and retailers and harnessing technology to extract actionable insights. He remarks:

“If that doesn't happen, I know that's not the sexy answer, but that's the reality.” (27:58)

Additionally, Jeff points out the underutilization of AI in mining data for insights, advocating for more sophisticated technological integration to drive decision-making.

Best-in-Class Partnerships with Wakefern

Timestamp: 32:20

Jeff outlines the characteristics of successful partnerships between CPG brands and retailers like Wakefern. Key elements include:

• Transparent Communication: Open and honest dialogue, even during challenging discussions.
• Mutual Goals: Alignment on shared objectives such as customer loyalty and community initiatives.
• Continuous Planning: Ongoing adjustments and real-time collaboration to adapt to market changes.

He states:

“Loyalty. We just talked about loyalty and how customer loyalty is difficult to maintain. That's no different than retailer and supplier loyalty to each other.” (32:30)

Advice for CPG Companies

Timestamp: 26:09

Jeff advises CPG companies struggling to adapt to the omni-channel consumer and inflationary pressures to prioritize consumer loyalty and relevance. He emphasizes meeting consumer expectations through personalized engagement and maintaining adaptability in marketing strategies.

“Traditional marketing approaches... may not meet the mark if a customer's looking for a personalized experience.” (26:09)

Embracing Opportunities: The Power of Saying Yes

Timestamp: 36:47

Jeff shares a pivotal piece of career advice that has shaped his success: "Say yes" to opportunities. He explains how embracing challenges, even those outside his comfort zone, has opened doors for growth and leadership.

“Saying yes has done a lot for me. It's very powerful. It's put me in rooms I would have never been in before.” (36:47)

The Role of AI in Grocery Merchandising

Timestamp: 40:16

Jeff discusses the current and future applications of Artificial Intelligence (AI) in grocery merchandising. While recognizing its present limitations, he envisions AI playing a crucial role in data analysis, pricing optimization, and enhancing operational efficiencies.

“There's no great answer... But for now, there are some things we do today that we could do with excellence if we leveraged AI a little bit more effectively.” (40:16)

Closing Remarks

Sri and Peter thank Jeff for his valuable insights and participation. The episode concludes with a reminder for listeners to engage with The CPG Guys through their website and various platforms.

Key Takeaways

• Adaptability is Crucial: The ability to pivot and adapt to changing consumer behaviors and market conditions is essential for both brands and retailers.

• Consumer Loyalty Requires Personalization: Building and maintaining loyalty hinges on delivering personalized and relevant customer experiences.

• Strategic Partnerships Drive Success: Transparent communication, mutual goals, and continuous collaboration are the pillars of successful brand-retailer relationships.

• Leverage Data Effectively: Aligning on success metrics and utilizing advanced technologies like AI can significantly enhance operational and marketing strategies.

• Embrace Opportunities: Openness to new challenges fosters growth and leads to unforeseen opportunities in one's career.

For more insights and episodes, visit cpgguys.com.