The CPG Guys: Commerce Riff with Sri & Peter – October 7, 2025

Episode Overview

In this lively fifth “Commerce Riff” edition, CPG and FMCG eCommerce industry expert Sri Rajagopalan and consumer loyalty thought leader Peter V.S. Bond take listeners through the week's most significant events in the world of retail and consumer packaged goods. With their signature banter and insight, they cover the closure of Rite Aid, a blockbuster alliance between Amazon and Spotify, fresh takes on Kroger’s latest earnings, and the growing stakes for retailers in omnichannel commerce and digital innovation. The show wraps on a look ahead to Super Bowl LX, including some halftime show hype.

Key Discussion Points & Insights

1. Rite Aid’s Retail Farewell

[02:26] – [03:30]

• Rite Aid Closes All Stores:
  • Sri introduces the sad news that “Rite Aid closed all of its locations after filing for bankruptcy twice in less than two years.”
  • Rite Aid’s exit ends over 60 years of operations; former customers are being directed to access their pharmacy history and transition elsewhere.
  • Missed opportunities: Rite Aid rejected previous merger attempts by Walgreens (2017) and Albertsons (2018).
• Personal Reflections:
  • Peter highlights a personal connection: “former president Lou Lehrman… a fellow Hill School alumni… it was a big part of growing up in Eastern Pennsylvania.”

2. Amazon & Spotify’s Programmatic Advertising Superpower

[03:30] – [07:16]

• Global Strategic Integration Announced:
  • Amazon DSP (Demand-Side Platform) now has programmatic access to Spotify’s audio and video advertising inventory.
  • This gives advertisers incredible omnichannel possibilities across Amazon, Spotify’s 700 million monthly users, and eventually more services/audiences.
• Official Quote: Meredith Goldman, Director of Amazon DSP at Amazon Ads:
  • “By combining Amazon’s diverse audience and first party signals with Spotify’s high quality content and engaged fan base, we’re creating new and meaningful ways for advertisers to amplify their omnichannel advertising strategies.” [04:11]
• Advertising Implications:
  • This partnership enables “full funnel measurement and attribution” and scales omnichannel activation via Amazon DSP.
  • Expansion covers US, Canada, UK, Germany, France, Italy, Spain, Brazil, Mexico (to expand further in 2026).
  • Peter: “Amazon DSP just keeps getting bigger and bigger. It’s a juggernaut.” [05:47]
• Industry Context:
  • Amazon DSP recently added Netflix. Sri notes: “Now they get Spotify. Audio, video. They're everywhere.” [07:00]
  • Peter connects the growth to the rising significance of the Amazon Marketing Cloud and the advertising measurement “clean room.”
• Speculation for the Future:
  • Sri: “Maybe in the future, as clickable buy happens within connected TV and audio as well, it leads to a buy on Amazon.” [07:16]

3. Email Innovation: Zamo’s Interactive E-Commerce Emails

[05:16] – [06:46]

• Email Reimagined: Peter introduces Zamo, which “embeds interactive websites inside of the email inbox itself,” allowing:
  • One-click product purchase, subscription edits, review submissions directly from email.
  • “CPG brands typically see a 20% reduction in churn and a 50% increase in cross sells.”
  • Time to implement: “only takes 30 minutes.” [05:55]
  • Zamo integrates with Klaviyo, Braze, and Salesforce Marketing Cloud.

4. Kroger Q2 2025: The Digital & Private-Label Revolution

[07:16] – [10:05]

• Kroger’s Priorities and Performance:
  • 360 Merchandising Solutions’ Kroger Q2 analysis: The grocery game is now about “freshness, scale, digital and efficiency.” [07:36]
  • Sri: “Did you hear me say anything about center store? Fresh is outspacing center store. Pricing and promotions are being simplified. Kroger says our brands continue to outperform national brands and e-commerce growth is fueling retail media profitability.”
  • E-commerce up 16% year-over-year, driven by more households and higher order frequency.
  • Store network: Closing ~60 underperforming stores, accelerating more efficient new builds for 30% more openings.
• Strategic Guidance for Brands:
  • Sri emphasizes, “Align with Kroger’s new playbook: fresh cues, digital visibility, margin-friendly promo and efficient partnerships—or risk being left behind.” [08:17]
  • National brands must innovate or get eclipsed by private label and fresh positioning.
  • Peter reinforces Kroger’s digital pedigree: “They have about a customer first policy. Avoid them at your own peril. They’re a force to be reckoned with.” [10:05]

5. Super Bowl LX: Stakes, Spend and Star Power

[10:05] – [11:45]

• Ad Rates Rocket: Super Bowl 60 (February 8, 2026) ads are “bringing in more than $8 million for a 30 second ad spot” (Peter). [10:24]
• Significance for Marketers: For some brands, that’s “20, 30% of even the largest companies’ ad budgets.” (Sri) [10:42]
• Reach Still Matters: In a world of cord-cutting, Peter notes, “this is the one event where you do get reach,” with last year’s broadcast becoming “the most watched Super Bowl ever.” [10:48]
• Halftime Star: “Puerto Rican music phenom Bad Bunny will perform during the Super Bowl halftime show” (Peter). [11:12]
• Show Coverage Tease:
  • The CPG Guys will recap every ad, teaser, and major update immediately after the game.

Notable Quotes & Memorable Moments

• Sri (on Rite Aid’s downfall):
  “I'm deeply saddened to see the end of it.” [02:50]
• Peter (on Amazon’s growing ad power):
  “Amazon DSP just keeps getting bigger and bigger. It’s a juggernaut.” [05:47]
• Sri (Kroger’s brand advice):
  “Align with Kroger’s new playbook… or risk being left behind.” [08:17]
• Peter (on Kroger’s edge):
  “They are Avant garde, they understand their consumers… Avoid them at your own peril.” [10:05]
• Sri (Super Bowl ad spending):
  “That’s like 20, 30 percent of even the largest companies’ ad budgets.” [10:42]
• Peter (on Bad Bunny):
  “Bad Bunny will perform during the super bowl halftime show. From Bad Bunny to potentially the Duracell Bunny, CB guys will track every ad…” [11:12]

Key Timestamps

• 01:27: Show start and host introductions
• 02:26: Rite Aid closure and personal reflections
• 03:30: Amazon and Spotify’s advertising partnership explained
• 04:11: Official comment from Amazon DSP’s Meredith Goldman
• 05:16: Email’s new era with Zamo
• 06:54: Amazon DSP’s growing media portfolio and Netflix/Spotify additions
• 07:16: Kroger Q2 earnings and the new playbook for brands
• 10:05: Kroger’s digital advantage and warning to competitors
• 10:24: Super Bowl ad rates and reach
• 11:12: Bad Bunny halftime info and CPG Guys coverage tease

Summary Takeaway

Sri and Peter’s analysis makes clear: legacy retail is being disrupted from all fronts. The week’s headlines show the collapse of old guard stores, the rise of powerful new media alliances, private label’s domination, and the necessity for CPG brands and retailers to adapt quickly to survive. The digital shelf is now the core growth engine, and those who can play omni-channel, personalize, and be where consumers are—whether on Spotify, Netflix, or in a revamped Kroger—will be the ones who thrive.

Stay curious and get informed—these Commerce Riffs deliver the pulse of the industry.