The CPG Guys: Commerce Riff with Sri & PVSB – March 10, 2026

Episode Overview

In this bite-size (≈10-min) episode, hosts Peter V.S. Bond (PVSB) and Sri Rajagopalan discuss recent developments among major U.S. retailers Kroger, Target, and Costco. The pair riff on executive shakeups, AI’s growing influence in retail, how Target is redefining its food and beverage business, and Costco’s approach to tariff refunds—highlighting how each retailer responds to rapidly evolving market dynamics. The hosts share personal anecdotes from Orlando and Universal’s theme parks but quickly shift to analyze curated commerce news for the CPG/FMCG industry.

Host Catch-up and Scene Setting ([00:02]-[00:58])

• Hosts Peter and Sri exchange updates from Orlando—PVSB enjoying Universal’s new Epic Universe park with his daughter, Sri prepping to speak at Mars Company’s National Sales Meeting.
• Both reflect on balancing work, family, and the excitement of upcoming industry events (Cornell executive program moving to Ithaca, a major Cannes Lions activation with FMCG Guys, hosted dinners around ShopTalk, etc.).
  • Quote ([00:58], PVSB): “Location, location, location. We have got it.”

Topic 1: Kroger’s Leadership Shift and Performance ([01:05]-[05:36])

CEO Transition & Strategic Review

• Kroger welcomes Greg Foran as CEO (ex-Walmart US), who succeeds interim CEO Ron Sargent after Rodney McMullen’s departure.
• Foran’s early focus:
  • Immersing in Kroger’s internal ops, stores, and customer experience.
  • Reviewing and refining the company's strategic plan.
  • Reinforcing Kroger's strong private label, in-store execution, and e-commerce.

Financial Headlines

• Fiscal 2025 ended Jan 31: Adjusted EPS and net earnings slightly down, largely due to $1.9B in impairment/write-downs (mainly from E-commerce fulfillment).
• Kroger continues to outperform Wall Street on adjusted earnings but signals need for top-line growth.

Foran’s Strategy:

• Quote ([03:45], Foran via PVSB): “We need to grow sales faster…that comes down to giving customers a compelling reason to shop with you by offering great value, great products, and a great experience.”
• Plans to sharpen everyday value, invest in fresh, improve promo effectiveness, cut costs, and maintain trust on price.
  • Quote ([04:21], Foran via PVSB): “When you combine competitive prices with a strong, fresh, well-run store, you drive traffic, grow basket, and win share. That’s what I want to accelerate.”
• PVSB notes Foran is talking like “an Omni Channel warrior.”

Topic 2: Kroger’s AI Push & 84.51° Leadership ([05:36]-[07:31])

• AI’s Strategic Elevation: Milan Bhatt named Chief Data & AI Officer (a new role), while still leading Kroger’s analytics arm, 84.51°.
• AI Applications:
  • Leveraging AI to optimize internal processes and drive shopper engagement.
  • Example: Kroger was among the first to use Instacart’s “AI basket builder;” employees use Sage, an AI-powered virtual assistant.
• Future Impact:
  • Significant 2026+ investment in AI.
  • Sri: “AI in retail is getting real, real serious.”
  • CFO David Kenlly: “The creation of the role makes a big, big statement about how seriously they’re taking AI.” ([07:07], Sri/PVSB attribution)
• PVSB compliments Milan’s background and describes him as “one of the sharpest minds I've ever met” ([07:31]).

Topic 3: Target—Redefining the ‘Everything Store’ ([07:31]-[10:58])

Target’s New Chapter

• CEO Brian Cornell describes Target’s next phase as “playing our own game,” focusing on delivering delight and making bold internal changes.
  • Gathering feedback from a wide range of stakeholders: loyalists, critics, founders, and supplier partners.
• Streamlining operations to empower store teams and speed decision-making.
  • Quote ([08:16], Fidelki via PVSB): “Guests want a strong, trend-forward assortment they can trust to deliver quality and value.”

Food & Beverage Evolution

• CHO Kara Sylvester: Food and beverage not just about being “the grocer down the street,” but creating a distinctive destination at the intersection of wellness, emerging brands, and private label.
• Key stats:
  • F&B sales (year ending Jan 31): $24.14B (up 1.3% YoY).
  • Target to double unique food/beverage assortment in 3 years.
  • “Good & Gather” private label is on track to become a $4B brand.
  • Quote ([10:01], Sylvester via PVSB): “When you deliver trend-right newness, consumers respond.”

Topic 4: Costco & Tariff Refunds ([11:14]-[13:54])

Tariff Landscape Shift

• CEO Ron Vachris promises tariff refunds (from the Supreme Court’s invalidation of Trump-era global tariffs) will flow back to Costco customers, lowering prices and promoting transparency.
  • Quote ([11:26], Vachris via Sri): “Our commitment will be to find the best way to return this value to our members through lower prices, better values.”

Ongoing Uncertainty

• Process for refunds is undefined; legal and practical hurdles remain with customs.
• Costco’s plan: limit SKUs, push domestic sourcing, strategic debt management for supply chain control.
• Already reducing prices on affected items (textiles, bedding, cookware).

Notable Quotes & Moments

• PVSB (on Cannes Lions, [00:58]): “Look for a big, big splash for the CPG Guys at Cannes Lions.”
• Sri (on Kroger’s AI move, [07:07]): “AI and retail is getting real, real serious.”
• PVSB (on Milan Bhatt, [07:31]): “Millen’s one of the OGs…one of the sharpest minds I’ve ever met.”
• Sylvester/Target ([10:01]): “When you deliver trend-right newness, consumers respond.”
• Ron Vachris/Costco ([11:26]): “Our commitment will be to find the best way to return this value to our members through lower prices, better values.”
• Sri (on Target’s food goals, [10:01]): “Target seeks to build a distinctive grocery destination where emerging brands, wellness and owned brands intersect.”

Timestamps for Key Segments

• [01:05] – Kroger CEO transition and strategic focus
• [03:45] – Foran on customer experience and Kroger’s plan
• [05:36] – Kroger’s new AI role & strategy
• [07:31] – Target shifts focus; redefining food & beverage strategy
• [10:01] – Target details on food/bev growth and future plans
• [11:14] – Costco’s approach to tariff refunds and price transparency

Summary

In a brisk, engaging riff, Sri and PVSB pull together leadership moves, technological bets, and the strategic pivots of top retailers. The future of AI in retail, the curated path of Target’s grocery business, and Costco’s customer-first approach on tariffs each echo a common message: innovation and customer-centricity are reshaping CPG commerce in 2026.