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- [00:02]
A
It's May 12, 2026 and this is the Commerce Riff 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, pvsb and I'm joined as always by Papa Raj, the father of pop stars, co founder of Think Blue Consulting. Cherie, how's the week treating you?
- [00:20]
B
Can't complain, Peter. We were at the Gold House gala last night. It was busy on Sunday night. I also want to wish a belated happy Mother's Day to all the moms in our industry. You guys are the bedrock. Thank you to the moms of our children, Kavita and Zara, respectively. One important date that is. It also happens to be my mother's birthday, May 10, as well as my nephew Veer's birthday, my younger brother's son. So, momentous weekend for the Raj family. How about you? What were Mother's Day's plans? What'd you guys do?
- [00:50]
A
Well, heading over to the Madison Beach Hotel for a lovely brunch by the ocean should be good. Shree is this episode goes to air. We will have just attended Monday evening's Amazon Upfront at the Beacon Theater. Guess what? You're going to hear our recap of that coming soon to this very podcast. All right, let's get into it. Four stories this week that cut across the full spectrum. A regional grocer making a big bet on performance based promotions. A storied cereal maker handing its keys to a new operator. A legacy food giant spending its way back to relevance in the quick commerce juggernaut that keeps setting records and even when it misses on revenue. Let's start with a story that is squarely in the wheelhouse of everyone in this audience who thinks about digital commerce, cpg, brand investment at retail and the architecture of how savings get delivered at scale. Giant Eagle, a Pittsburgh based regional grocer with more than 200 stores across Western Pennsylvania, Ohio, West Virginia, Maryland and Indiana, has named ibotta as exclusive digital promotions partner. We've had quite a number of people from IBOTTA on our podcast in the past. Full stop. Can you believe that? Sree not one of many exclusive Giant Eagle has joined the ibotta Performance Network. And ibotta's technology will now power every digital reward across the chain, supermarket and digital platforms. This is a meaningful move for a few reasons. First, the strategic framing Giant Eagle has been executing what it calls because it matters business strategy. A multi year plan to deliver better everyday value and modernize the shopping experience. Plugging into IBOTTA is not a tactical add on, it's a core plank of that value platform. Second, the CPG implication. Ibotta's network gives participating retailers access to eight times more national CBG offers than leading competitors. And for brands, their performance based model is significant. You pay when a verified sale is made, not when an impression is served. That's a big difference for any CPG marketer managing trade investment at Giant Eagle. This is a structural shift in how digital promotions get executed and measured. Third, the network effect. Giant Eagle now sits alongside Walmart, Instacart, DoorDash and Uber as an Ibotta Performance Network publisher. Think about what that means from an audience perspective. A brand running through the IPN can reach consumers across formats, channels and occasions through one integrated platform. That's a significant consolidation of the promotional stack. The CPG lands exclusivity and digital promotions is a double edged sword for Giant Eagle shoppers. It should mean a more curated, more relevant offer gallery with ibotta's technology doing the curation. For brands it means one pipe, one measurement methodology, one source of truth on redemption at this chain. The question to watch how quickly does Giant Eagle digital promotional engagement grow and how does that translate into incrementality for CPG advertisers? Sri, over to you
- [03:56]
B
Peter. Thank you so much. First thing I want to say is Brian Lee just clearly built a powerhouse. What I love is the performance based outcomes which very few have. Crazy if you thought about it. Well done Brian Leach. Indeed. And I got an interesting one for you Peter because let's talk General Mills. On the same week the company is trading near a 52 week low. Stock is about nearly a third of its peak in the $90 range. About three years ago management made a significant leadership move that deserved discussion. We cover executive promotions weekly. On the riffs we have a new one for you which is closer to my heart. General Mill just promoted Dana McNabb to chief operating officer effective June 1, 2026. She'll continue to report to chairman and CEO Jeff Harmoning and will join the Board of Directors. Her remit actually expands substantially from North America leader to in addition to her current leadership, she gets all of General Mills operating segments, International Food Service plus the digital and technology innovation, technology and quality strategy and growth supply chain teams. That is a significant consolidation of operational authority under one executive. First of all, being an ALMA model, let me wish her congratulations and continued success. The weight of the world on the turnaround is now on this role. As it's pretty clear joining the board of Directors. Maybe she's the next CEO. But wait and watch. You know don't want to speculate here. Wall street is clearly watching. The stock price is nearly a third of its peak and that's over 20 billion in market cap diluted. I said 20 billion. Peter Dana is a 27 year company veteran. She started a generals career in Canada in 1999. Worth noting for Canadian listeners in Peter's alma mater country as he claims every time they win a hockey medal or a curling medal. She has held senior roles across US Serial Europe and Australia. Global marketing for Serial Partners Worldwide Chief Strategy and Growth Officer before zooming the North America retail seat in 2024. Of course publicly declared compensation packages we talked about here in the Rift Vendor promotions reflects an elevation the million dollar base salary cash incentive target of 150% of salary and a 4 million annual long term equity incentives. The company that it's substantial retention or SEO awards to CFO Koki Bruce Chief Digital and Technology Officer Jaime Montemayo signaling that leadership stability is a board level priority right now. Obviously given the company performance. I wish all the best and would like to see the ship turnaround. Sweet and disclosure. I have stock as well and would like to see it perform. I need to perform. Three years is a long time to see change. I've been gone for two of those and I wonder Peter, how much longer it will take to cut in the course of this ship. Three years is again, I'm going to say it again, a long time. But it's time to dig in. Is it a management issue or. Clearly by relying on management, we're past that at this point because we just talked about incentives being given. Is it a portfolio issue? Is it something else in the ecosystem? Has consumers traditionally changed the way they eat breakfast cereal and snacks? GLP1 is here. Something is off the charts. And Anton, what do you think?
- [07:06]
A
Sri? I think it's interesting times going on in Minneapolis. All right, let's talk Kraft Heinz because this is a company in the middle of a genuine Identity reset in Q1. 2026 gave us the clearest picture yet of what the reset looks like in practice marketing investment rows ready for this Sri 37% year over year in Q1. Wow. Todd Kaplan has got pretty big big pockets right now. It's not a rounding error. CEO Steve Callahane, who came in earlier this year and paused the company's plans to split into two entities, has committed to marketing spend of at least 5.5% of revenue for the full year. That's even dry powder to push higher if the macro environment cooperates. The company has approximately $600 million set aside to improve product superiority, pricing, marketing sales and R and D. The bulk focused on the US. The business results well. Net sales were up 0.8% in Q1, modest but in the right direction. Organic sales were down 0.4%. The company reaffirmed guidance calling for organic net sales to decline between 1.5 and 3.5% for the full year, driven by macro volatility, inflation and consumer confidence pressures not unfamiliar in the CPG space right now. Sri Kaylahane was direct about the consumer environment, noting that shoppers are running out of money toward the end the month and the Kraft Heinz is responding with price cuts on select items in smaller packs. Talk about running out of money at the end of the month. My gas bill from the beginning of April to the end of April just skyrocketed. Sree when is the marketing investment? Where's it going? Well, CFO Andre Massiel flagged that the initial priority is the win big categories sauces, cream cheese, Mac and cheese and hydration. But the signal is the portfolio is broadly eligible for spend acceleration. On the innovation side, Power Mac protein fiber packed version of Kraft Mac and Cheesers, we in Canada like to call it Kraft Dinner launched in March into 35,000 stores. Capri Sun Hydrate, a functional sports beverage is slotted for Q2. Lactose free. Philadelphia Cream Cheese is expected later in the year. Ho ho. How about that? The media strategy shift is equally notable. Kraft Heinz has become the first official global condiment partner of the NFL through a five year deal that is an anchor partnership that will drive reach and cultural relevance across a massive platform. More broadly, Kaylahane described a shift towards what he called higher return brand media and a narrowing of media partnerships to those with highest impact. The result? Return on ad spend has improved by 8 percentage points globally. It's nice, but what really matters is the incrementality. We know that sree the CPG lands while Kraft Heinz is making a very deliberate wager that spending through the CYC rather than cutting marketing when volumes are soft is the path to brand health. This is not a new thesis, but it is a disciplined one and Kayleen is backing it with real dollars. The risk is execution. Can the portfolio produce the innovation velocity and media effectiveness the investment demands? Watch the PowerMax sellout data and the Q2 Capri sun launch as early indicators. Sri Close us out would you?
- [10:26]
B
Peter, the whole world grew up with Kraft Mac and Cheese and you know, a secret guilty pleasure to the day. Sometimes I'll make it with a bunch of vegetables and throw in protein powder. So nothing better than covering craft here. And I have DoorDash next for those of you listening in. We had Vasilisa Molis earlier in the year from DoorDash. Love working with DoorDash. They will be part of the Cornell Retail media education program July 27th to 31st. Which of course if you want to know more, just ping one of us, Peter or me. You can LinkedIn messages@shriptguys.com contact@CPTGuys.com reach us@CPTGuys.com so I want to talk about how the market looks at a fast growing company like DoorDash, which clearly it is and what quick commerce platform business actually looks like at scale the top line numbers revenue hit 4 billion in Q1 up 33% year over year. Total orders rose 0.7% to 933 million for the quarter. That's a lot of orders Peter. And the marketplace gross order value reached 31.6 billion and up 37% year over year. Adjusted EBITDA grew 28% to 754 million. Congratulations. Gross margin came in at 51.9%, slightly ahead of the 51.6% street had modeled on the bottom line GAAP net income that could be able to DoorDash forming stockholders came in at 184 million, down 5% year over year. The engagement stories are going to be more important than the revenue line. DashPass and other membership programs across DoorDash. Deliveroo and more hit record signups in the quarter. Monthly active users reached an all time high order frequency scoring. CEO Tony Zoo made a turning point during the earnings call that customers judge every platform on one thing, particularly the exact item they ordered. That execution obsession is reflected in the operating numbers. Despite a revenue miss versus Wall street estimates, shares jumped roughly 10% in after hours trading. The driver Q2Gov guidance of 32.4 to 33.4 billion came in well above the 28 billion consensus the market is looking through the short term mission Pricing in the trajectory One headwind word noting management flag that winter storms in the quarter created roughly a 1% drag on year over year gov growth, so the underlying demand picture is even cleaner than the headline numbers suggest. CPG and Retail Media Land Store Dash's scale in grocery and retailers are substantial enough to matter as an advertising platform, as I mentioned. Yet Basilisa Moles earlier in March gave a complete decomposition of how the element works when monthly active users long an all time high and DashPass membership is accelerating the audience available to CPG brands. Running ads through DoorDash's ecosystem goes with it for brands investing in quick commerce, whether through promoted placement dashboards, exclusive offers or sponsored product ads, the reach and frequency opportunities expanding quarter over quarter. And with Giant Eagle now in the ibarra network alongside DoorDash, the promotional stack across big commerce and traditional growth is grossly beginning to interconnect in the most interesting ways. Peter
- [13:28]
A
thank you Sree. That's a wrap on this week's Commerce riff. Reminder to check out our recent conversations with John Fitzgerald, Senior Director of Growth at madtree Brewing, plus Kim Cox and Richard Pereira from Nielsen iq. If anything we covered this week sparks a third thought. Well, drop it in the comments. Send us an email. We read them all. And if you're not following us on LinkedIn, Instagram, TikTok, Facebook and YouTube yet, well, now's the time. We'll see you next week. 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 CPG Guys, LLC where 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 CPGuys 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 CPTGuys 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, reference to, or inability to use this podcast or the information we present in this podcast.