Commerce Riff with Sri & Peter - October 7, 2025

Summary

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.

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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.”

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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]

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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.

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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]

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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.

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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]

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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

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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.

Transcript

[A]

For over 50 years, mass market retailers, MMR has been the definitive media authority across key retail channels including discount, grocery club, e commerce and specialty. Now, Retail MediaIQ, MMR's parent company, is building on that legacy by integrating the trusted editorial insights and extensive reach of chain drug review into the MMR platform. At the same time, Retail Media Iq is expanding its editorial focus to include the fast moving convenience store channel. The result is a powerful, unified media platform that reflects the full scope of today's retail ecosystem. Backed by decades of expertise, deep industry knowledge and editorial excellence, the new mmr, which debuts in October, will deliver the most comprehensive view of retail and reach the largest, most influential audience of decision makers across the retail and consumer packaged goods sector. The strategic expansion of MMR mirrors the challenging dynamics of the industry and affirms the publication's mission to be the go to source for insights, analysis and access across every retail vertical. Check out the link in the digital liner notes to this episode. To reach mmr, make sure you're subscribing to their newsletter.

[B]

Hello and welcome to episode five of the Commerce Rift for the CPG Guys. I'm of course your co host Sri Raja Gopan AKA Papa Raj and use my last name. For the first time in the history of the CPG guys. I'm also co founder and CEO of Think Blue Consulting and I'm joined by my co host and co founder of the CPG Guys, Mr. PBSP aka PWS Bond. How you doing man?

[A]

Wait, your last name is Raja Gopalan? How did I not know this? This is crazy. Hey Paparaj, I hear you got some new swag. You're gonna have to dazzle fans with that. On social media. It says Paparaj on the back. I'm really excited to see that. I'm doing great. We're four episodes already in. We didn't get one done last week. We were kind of busy at grocery shop. We of course sharing our opinion on what we consider to be the most important news items from our great CPG and retail omnichannel channel industry. Make sure you're following us. Instagram, TikTok, YouTube. It's real easy. Just look for CPG guys. Yep, it's that easy. So Cherie, let's kick it off. Big news Rite Aid. What's the deal?

[B]

This one makes me sad, but Fox Business reports that pharmacy chain or drugstore Rite Aid closed all of its locations after filing for bankruptcy twice in less than two years. The retailer posted a brief announcement on its website. All Rite Aid stores are now closed. Besides states. We thank our loyal customers for the many years of support the website offers former customers, their pharmacy and immunization history, as well as assistance with finding pharmacies that the prescriptions can be transferred to. The drugstore chain operated in the US for more than 60 years. The company had opportunities to merge with Walgreens in 27 Albertsons in 2018, but it unfortunately rejected both. According to Investopedia, back in 1987, Rite Aid was indeed the largest drugstore chain in the US with more than 2,000 stores, according to the website. The drug searching operated for 60 plus years and I was such a big fan because of that number being in the Northeast and their high penetration. I'm deeply saddened to see the end of it. Anyway, Peter, we have what you and I would consider a blockbuster announcement from Spotify and Amazon.

[A]

Yeah, I'll say one thing about Rite Aid, former president Lou Lehrman. His family founded it. He's a fellow Hill School alumni. I remember growing up in going to prep school in Eastern Pennsylvania and that was a big part of it, right? Sad to see them go. Yeah, Big announcement. Sree going on with Amazon and Spotify. They've announced a global strategic integration that provides advertisers using Amazon's DSP or demand side platform, programmatic access to Spotify's high quality streaming audio and video inventory. This partnership brings Amazon's trillions of shopping, streaming and browsing signaled together with Spotify's global audience of nearly 700 million monthly users, enabling advertisers to reach engaged audiences at scale while providing access to full funnel measurement and attribution. From today, the offering will be available in the US, Canada, the uk, Germany, France, Italy, Spain, Brazil and Mexico. Further countries will be added in 2026. Quote 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, said Meredith Goldman, Director of Amazon DSP at Amazon Ads. Quote Amazon DSP now has unprecedented scale across Amazon and open Internet audio supply, allowing us to set new standards for holistic campaign planning and activation. Wow, this is really big. Advertisers using the Amazon DSP will have access to Spotify streaming audio and video ad inventory, enabling omnichannel activation at scale. This partnership allows advertisers to incorporate Spotify's high quality content alongside Amazon's diverse content or rather diverse connected TV inventory, supporting effective full funnel planning, activation and measurement in A single solution. You know shree. Amazon DSP just keeps getting bigger and bigger. It's a juggernaut. Sree email is still the most effective owned channel for CPG brands, even though it hasn't changed in decades. Now it has changed. Zamo works with your existing ESP to embed interactive websites inside of the email inbox itself. Customers can now purchase products with one click, edit their subscription and leave reviews directly in the email without leaving the inbox. With Zamo, CPG brands typically see a 20% reduction in churn and a 50% increase in cross sells. The best part is implementation only takes 30 minutes. Brands like Everyday Dose, Kitsch, Armra and Ghost Protein use Zamo to get more out of their email lists. And if you're using Klaviyo Braze or Salesforce Marketing Cloud, Xemo integrates with your existing setup. Reach out to Zaymo. That's Z-A-Y-M O.com to get a demo before Black Friday.

[B]

Yeah. What was another one they recently announced? Just recently. We had talked about it on the Riff a couple of weeks ago.

[A]

Oh, they added Netflix and so now they have Netflix.

[B]

Yeah, now they get Spotify. Like what?

[A]

Audio, video. They're everywhere. Sri, they have all. Everyone is plugging into Amazon. They want access. And a lot of it has to do with the Amazon marketing cloud. Right. It's a measurement tool that everybody wants part of that clean room.

[B]

Also, to some extent, I feel, I can't say this with certainty, but if you're in the TV business, streaming TV entertainment business, same as Spotify. Maybe in the future, as clickable buy happens within connected TV and audio as well, it lead to a buy on Amazon. Let's see for speculation here on that one. And indeed turns out to be right. But Peter and I, the CPG guys, we are good friends with Amazon ads. We featured them on the show. You know, we had Tanner Elton live from Cannes lions this year. It was episode number 500. It was a blockbuster. An episode. I think it's a big deal and so does Peter. So with that whopper of a partnership, let's transition to a recent earnings announcement for Q2. The 360 Merchandising Solutions assessment of Kroger's Q2 2025 earnings call made it clear the grocery game is being redefined around. Let me go slow. Freshness, scalar digital and efficiency. Did you hear me say anything about Sinistore 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. Hallelujah. Store networks are being reshaped with closures. Faster builds more efficient layouts while cost and sourcing efficiency remain top priorities for the company. For brands, Kroger's message is simple. Align with Kruger's new playbook fresh cues, digital visibility, margin friendly promo and efficient partnerships or risk being left behind. Even sinistro brands should lean into fresh cues to clean ingredients packaging, positioning it on health convenience. Kroger's personal brands products once again outpaced national brand sales, continuing a trend of shoppers trading into private label for value and quality. They've already said e commerce grew, but it grew 16% year over year quarter driven by more hustles and higher order frequency. The key word here being more households. And if you get that with higher order frequency you're exponentially growing everything. Kruger emphasized the digital momentum is an all profit driver as I mentioned through retail media. Peter and I through our own experiences working in retail media know at this point it's a clutch for retailers. It's happening folks. Make sure you do those partnerships. Digital shelves are becoming increasingly important as a core growth engine. Who better than Peter to tell us about that? Kroger is also closing approximately 60 underperforming stores while accelerating new openings with more efficient layouts, faster construction timelines, expecting 30% more openings in the future brands pay attention to your JBPs. Focus on the retailers priorities Fresh private label and digital e commerce. Peter, what do you think about Kroger in their earnings release saying digital is that important to him? Getting new households?

[A]

Sree they've been building their capabilities for 25 years beginning with the partnership they established with Dunn Humby. They ingested it, turned it into 8451. They are Avant garde, they understand their consumers. They have about a customer first policy. Don't you know? Avoid them at your own peril. They're a force to be reckoned with. Sri we're four months away from Super Bowl 60. Can you believe it? Nads four the big game are already sold out. Commercials bringing in more than $8 million for a 30 second ad spot for broadcaster.

[B]

That's like 20, 30% of even the largest companies ad budgets.

[A]

It's crazy Shree. I'm still amazed that people will drop all this money in this day and age. But you know, with so much cable cutting and people not watching linear television this is the one event where you do get reach. And the reality is for broadcaster NBCUniversal they know that Super Bowl L became the most watched super bowl ever. There is unprecedented demand for advertisers for this year set there on February 8. Adding to the hype, Puerto Rican music phenom Bad Bunny will perform during the super bowl halftime show. From Bad Bunny to potentially the Duracell Bunny, CB guys will track every ad, advertiser, teaser trailer, full commercial and major update as it plays out next year. We'll have a recap immediately after the game. Sree finish this out.

[B]

Close it out Peter by saying, those of you that you know, react to Bad Bunning, who is Bad Bunny? He is one of the most downloaded artists of our times these days. Like me up there with like, I don't want to now make the Taylor Swift fans crazy, but he's up there from a male performer. So do check out who Bad Bunny is All right folks, that's our take on relevant commerce happenings from so many announcements this past week we thought were meaningful and could not be passed on for a rifle. We thought last week that Accelerate was powerful. Get informed. Be curious. This week we went all the way from Accelerate up in Seattle to the super bowl next year. We hope you enjoyed it. Please do click like our post on all platforms. Follow us on LinkedIn, Instagram, TikTok and now YouTube. Thank you. We'll see you next week for another edition of Commerce Rift by the CPG Guys. And with that, let me also say to all our sponsors, Grocery Shop 2025 from Peter and me. Thank you, thank you, thank you. See you next week.

[A]

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