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- [00:02]
Peter Vesper
It's April 14, 2026, and tomorrow is Jackie Robinson day. And this is the commerce rift brought to you by the CPG guys. 10 minutes of the news stories that matter most in commerce this week. I'm your co host, pvsp and I'm joined by paparazz, the father of pop stars, co founder of Think Blue Consulting. Sree. How was Coachella? Any highlights to share?
- [00:22]
Sree Paparazzi
Well, Peter, look, it's not every day that you have two kids in the business and you get to go backstage and your daughter introduced you to Trent Rezna from Nine Inch Nails, which is, of course my highlight. Watch perform live later and then meet the k pop Demon Hunters, see Cat's Eye live, their debut. Hang out with the trailer. Meet the entire Cat's Eye team. I hung out with Becky G. 35 million followers, Peter. How many do we have? Just people from radio, from tv, other stars. It was just mind blowing. A mind blown away. This was one heck of an experience when you do this. Artist, family, parent versus just going to Coachella, which I've done several times. It was mind blowing. I'll leave it at that. And then how did Nadia enjoy the picture of the k Pop Demon Hunters
- [01:05]
Peter Vesper
seeing Cat's Eye on stage with the girls from Hunt Tricks? That was mind blowing for her. She.
- [01:11]
Sree Paparazzi
Where were you and where we all this morning? At the beach or this morning?
- [01:16]
Peter Vesper
Actually today we went and saw the new Nintendo Super Mario Galaxy movie. Very exciting.
- [01:22]
Sree Paparazzi
Nice.
- [01:23]
Peter Vesper
All right, let's talk about a $1.2 billion bet on the gummy bear. This week, Unilever announced its acquisition of Groons. That's Gru with an umlau n s. It's a green supplement brand that. And I want you to sit with this for a second. Has been on the market for less than three years. It was founded by Chad Janis in 2023. Grooms was built around one brutally simple insight. For most people, the barrier to taking vitamins isn't cost or awareness, its consistency regimen. So Janice made them a gummy bear. A green gummy bear. And apparently America said sure. The brand scaled to 300 million in annual revenue in under four years. 10 million of its GLP1 friendly gummies every day. And entered 7,000 retail doors, all while boasting a 95% weekly usage rate among its customers. That's not a supplement. That's a ritual. Unilever noticed. The deal is part of Unilever's stated strategy to focus on premium high growth areas, particularly beauty and wellness and the US Market. Products are sold direct to consumer and through Amazon, Target, Walmart and Costco. Now here's the portfolio play that makes this interesting from its CPT strategy lens. Unilever already owns Ollie Nutrition, Smarty Pants, Vitamins and Neutral right. This isn't a one off wellness experiment. This is a company methodically assembling a well being house of brands. And Groons gives them the crown jewel. A digitally native, culturally resident Gen Z facing brand with the kind of repeat purchase behavior most CPG companies can only dream about. And context matters here. This is Unilever's first acquisition since agreeing last month to merge its food business with McCormick in a $65 billion deal. So as they shed the food assets, they're doubling down on wellness. The strategic pivot couldn't be clearer. Founder Chad Janis put it well quote with Unilever behind us, we can reach more people, move faster and continue raising the bar on what an enjoyable daily wellness habit can be. The phrase enjoyable daily wellness habit, that's the unlock three because the supplement aisle has always had an efficacy problem. Not science efficacy, behavioral efficacy. Groons cracked the compliance code by making the product fun to take. And now Unilever gets to scale that behavior across its global distribution machine. For us in the commerce world the signal is clear. Format is strategy. The gummy isn't a gimmick, it's a retention mechanic. And the brands that understand how to engineer habit are the ones attracting nine figure acquisition checks. Crazy right? SRI over to you wild man.
- [04:12]
Sree Paparazzi
Maybe we need to get into the GLP1 Gummy game. So all that said for yourself, something from the back of the bar for this one because the Spirit seven A story of the year just got a whole lot more interesting. You all remember and recall that a few weeks back Pernod Ricard and Brown Foreman announced they were in talks to create a merger of equals to global heavyweights seeking to reinforce their positions in the face of changing consumer patterns, status, headwinds and a category under real spending pressure. Big deal global implications. We covered it here on the CPG Guys rep. But then Sazerac, the makeup SOCO on well known Southern Comfort whiskey took the picture, reportedly making an approach to Brown Furman about a transaction of their own. And the market reacted immediately because Brown Furman shares spiked following the news up over 11% at the time of reporting a similar jump to what happened when the Pernod record talks first broke out. Brown family, now in its fifth generation of control, suddenly has options like real options. So let's break down what actually is at stake Here because these are very two very different type of deals. A Pernod Record and Brown Foreman type would have a massive international dimension. Combining French champagne brands James and Irish whiskey Absolute Vodka. With Brown Foreman's American whiskey expertise creating global spirits leader approaching the scale of Diageo. It's cross border, cross category category redefining play. Sazerac is something else entirely. The Brown Foreman and Sazerac combo would be a very different story. Both companies focused on the American market together accounting for roughly 18% of the U.S. spirits market, nearly 40% of American whiskey. That's not a global repositioning. We call that here in the CPG guys a domestic fortress. And that antitrust number, 40% of American whiskey is the number that will keep lawyers very busy. This thing moves forward. There's a notable cultural dimension here to both. Sazerac and Brown Foreman are headquartered in Louisville, Kentucky. That act remains 100% privately and family owned. Which for a fifth generation family like the Browns who historically been fiercely protective of their independence, might matter more than any valuation spreadsheet on planet Earth. In 2017 they rejected constellation Brands outright for that very reason. They know what not for sale feels like. Analysts are framing it this way. Pernod Ricard remains the more logical partner from a synergy standpoint. But Sazerac interest adds competitive tension. And competitive tension is a way of making deals more expensive, much more complicated. Ultimately, the family's preference for cash versus a stock heavy merger structure may turn out to be the deciding factor. So we'll wait and watch here. And that's a conversation happening in boardrooms, living rooms that none of us are certainly in. Peter, here's our takeaway. The spirits category is consolidating fast. The forces driving it. Tariffs, shifting, consumer behavior, premium, let's say premiumization pressure and the need for distribution scale aren't going away anytime soon. Whether it's a Louisville handshake deal. Get it? Louisville handshake deal. Or a Paris led global merger, Brown Forman is going somewhere. The only question is which of the two paths in which direction does it take? Well, I guess you're going to jump onto something very very interesting now. Including. Did I hear Apollo 13.
- [07:18]
Peter Vesper
Sree, we really do have to talk about this one. Because no media plan, no programmatic budget, no influence, you deal. Nothing. Nothing could have brought what Nutella got last week. Absolutely nothing. So here's what happened. Sri Just 3 minutes and 52 seconds before the Artemis II crew broke a 56 year distance record, becoming the human's farthest from the Earth since Apollo 13. A jar of Nutella floated gracefully across the Orion spacecraft on a NASA livestream. The jar drifted into frame, showed off its label like it was a planned advertisement, and delivered a product shot so pristine it looked storyboarded, perfectly lit by the eternal void of space zero art direction required. The clip lasted 15 seconds. Those 15 seconds are now widely considered one of the most memorable moments of the entire Artemis 2 mission. And here's the part that makes the story even better from a brand perspective. Ferrero, which owns Nutella, was not informed in advance. They did not provide product to NASA or the Canadian Space Agency. The jar was simply included among personal food items authorized by the space agencies. This was not a stunt. This was not a sponsorship. This was a human being in space who wanted Nutella and happened to let it float. Ferrara's response? Pitch Perfect sri the Ferraro Group put out a statement saying they were over the moon to see how an unexpected glimpse of Nutella spread a smile to fans even in space. Quote, we always knew Nutella is out of this world. Unquote, they said. Now we have proof. And on social the brand wrote, honored to have traveled further than any spread in history, taking spreading smiles to new heights. Rocket emoji, heart emoji done. Now, critically for us, this wasn't just a cute moment. Other brands noticed and jumped immediately. Smuckers Uncrustable posted a viral Instagram showing an Uncrustable hovering over Earth and promised the entire Artemis 2 crew a lifetime supply upon splashdown. That is news, Jack, at its finest. Sree, what does this moment actually mean for CPG marketers? UVA's Darden communications expert Steve Soltis put it well viral moments like this reinforce brand love, create a halo effect for millions of existing fans and likely bring in new ones. And capitalizing on them publicly is also an excellent way to boost internal morale for the team behind the brand. But here's our take. The Nutella moment worked because of something deeper than luck. It sat at the intersection of several forces that shape attention on the modern Internet. A major public event, a visual oddity, globally recognized consumer brand, a familiar household object inside an extraordinary environment, and a reaction cycle that moved faster than any planned campaign could. That's the formula. You can't manufacture it, but you can be ready for it with a social team that moves fast, a brand voice that's already established in the self, awareness to get out of your own way and let the moment breathe. Nutella didn't go into space to sell product. It went because an astronaut wanted a snack. And that's exactly why it worked out. Out of this world, literally.
- [10:34]
Sree Paparazzi
Sree I believe Smuckers has offered three crucibles for life to the poor astronauts. So we'll see if that comes true. Whether that's a marketing story, but it is wild. Peter Sometimes you get a gift and this one you get a celestial gift. And both the companies got a celestial gift. Both brands got a celestial gift. Let' leave it at that. Well, upfront season is upon us and if you're a CPG brand marketer heading into these negotiations the same way you did three years ago, we actually need to have a conversation. This is not your father's upfront, not your older siblings, not your older mother. The upfront used to be about one thing. Television specifically broadcast television over the air, then cable specifically. The networks control the inventory buyers needed reach and the annual May ritual locked in those deals that fueled the fall season. But that world is long gone at this stage. The new reality is Amazon is holding its own up front. On May 11th at the Beacon Theater in New York on the same night at NBCU at Radio City Music Hall. That's not a footnote, that's a statement. And who's going to be there? Peter, can you say it for our audience, please? The CPG guys. So what should brand advertisers actually be watching for? And we're going to break it down first. Follow the eyeballs, not the legacy relationships. Even though it's still prevalent in last year's market, streaming commitments grew to US$13.2 billion, 61% increase from just two years prior to while total linear TV upfront sales sat at $17.8 billion, down 3% from the year before. That gap is closing fast on the dollars are following the eyeballs. Needless to say, if your agency is still weighing linear the way they did in 2022, you need to ask some hard questions before you sign. One thing. Secondly, sports is the last must buy on linear, and everyone knows it. The combination of relative scarcity, size impressions has made sports the last must buy in a time when younger adults have Otherwise ditch traditional TV season. To date, the 18 to 49 set accounts for a mere 12% of the big fours live plus same day deliveries during the nightly primetime block, compared to 33% of NBC Sunday Night Football audience being adults under 50. So if you're a CPG brand trying to reach a working adult, sports inventory is not optional. It's kind of like the whole game for you. Third, stop thinking in channels. Start thinking in ecosystems since 2026 upfront planning guide argues that linear streaming and fast should be treated as an integrated ecosystem, with each attracting a distinct audience profile. That means your media plan can just be a bucket of GRPs and a streaming line item. Each platform is a different viewer, different age, different engagement mode, different purchase behavior. You're creative in your messaging must reflect all of that in four this is the one CPG marketers specifically need to hear. Do I need to say it again? Retail media is eating your upfront budget from the inside Agency execs report widespread client budget increases for retail Media in 2026, spending growth outpacing other channels. Budget migration is primarily coming from television, audio, traditional shopper media to platforms like Amazon, Walmart, Albertson, Kroger, and notably no client surveyed is decreasing retail media investments versus a year ago. Finally, outcomes of the new currency Today's advertisers view TV as a dual purpose tool, driving measurable performance while reinforcing brand memory and positioning. If a seller can't tell you what outcome you're buying, not just what impressions, you're reaching slowly towards the exit bottom line, the 2026 upfront is a portfolio negotiation across linear streaming as live sports and retail media all at once. Close it out, Mr. Bong as we
- [13:48]
Peter Vesper
wrap up, a reminder to catch up with our recently released episodes featuring Jason o' Toole and Katie Tripoti from Gildan and Kim Lefkoe from Ace Hardware. That's a wrap on this week's Commerce riff. If any of this sparked a thought, drop a line in the comments. We actually read them. And if you're not already following us on LinkedIn, Instagram, TikTok, Facebook, and YouTube. Now's the time. We'll see you next week.
- [14:11]
Podcast Disclaimer Narrator
The content in this podcast episode is provided for general informational purposes only. By listening to our episode, you understand that no information contained in this episode should be construed as advice from CPGuys, LLC or the individual author, hosts or guests, nor is it intended to be a substitute for research on any subject matter. Reference to any specific product or entity does not constitute an endorsement or recommendation by CPG Guys, llc. The views expressed by guests are their own, and their appearance on the program does not imply an endorsement of them or any entity they represent. The views expressed by CPT Guys, LLC do not represent the views of their employers or the entity they represent. CPT Guys, LLC expressly disclaims any and all liability or responsibility for any direct, indirect, incidental, special, consequential or other damages arising out of any individual's use of or reference to or inability to use this podcast or the information we present in this podcast.