Podcast Summary: The CPG Guys – "Shaping Food Policy and Retail Industry Advocacy with FMI CCO Mark Baum"

Podcast Information:

• Title: The CPG Guys
• Hosts: Peter V.S. Bond & Sri Rajagopalan
• Episode Title: Shaping food policy and retail industry advocacy with FMI CCO Mark Baum
• Release Date: January 8, 2025
• Description: CPG & FMCG eCommerce industry icon Sri Rajagopalan & consumer loyalty guru Peter V.S. Bond explore how brands and retailers understand and engage with consumers in-store, online, and everywhere in between.

Introduction

Peter V.S. Bond kicks off the episode by inviting listeners to a breakfast briefing at CES, highlighting a panel discussion on retail media investment plans for 2025 with Parbinder Dhalarwal and Andrew Lipsman. This segment serves as an event promotion, which the summary will later skip to focus on the core content of the episode.

At [01:08], Mark Baum, Chief Commercial Officer (CCO) of FMI Inc. (formerly the Food Marketing Institute), joins the hosts to discuss his role and insights into the food industry.

About FMI and Mark Baum

Sri Rajagopalan introduces herself and provides a personal touch by mentioning her daughters' musical achievements and her professional roles. She emphasizes the importance of following their sister podcasts and announces the first Retail Media executive education program in partnership with Cornell Tech.

Mark Baum shares an overview of FMI Inc. and his role within the organization:

Mark Baum [05:14]: "We are an international trade association representing companies and individuals in fast-moving consumer goods, retailers, wholesalers, and service providers. Our mission is to advance the collective interests of the industry, deflect unwanted regulation, and most importantly, serve consumers and their communities."

Sri underscores the importance of focusing on consumer delivery to ensure the industry's continued success.

Industry Challenges Discussed

1. Political Changes and Uncertainty

Mark Baum delves into the macroeconomic and political challenges facing the food industry:

Mark Baum [13:36]: "We are in an age of ongoing uncertainty, ambiguity, volatility, and instability. New political administrations and shifting economic alliances globally present significant challenges for the industry."

He highlights the rise of populism worldwide and its unpredictable impact on business environments, referencing the proposed Albertson Kroger merger as an example of increased regulation and distrust towards big businesses.

2. Inflation and Its Impact

The discussion moves to the pressing issue of inflation and its effects on the CPG sector:

Mark Baum [22:52]: "These factors caused inflation, and we've been living with it for a couple of years. Unfortunately, it coincided with a political season, making us a political punching bag for both parties."

Sri Rajagopalan adds insight on managing inflation by focusing on micro-level price points rather than attempting to adjust all price points simultaneously.

Sri Rajagopalan [20:29]: "Fix the opening price point, it's better than lethargy and no action."

Mark emphasizes FMI's commitment to narrow the spread between Producer Price Index (PPI) and Consumer Price Index (CPI), ensuring affordability and accessibility of nutritious foods.

3. Retail Media

The conversation shifts to the ever-popular topic of retail media, its significance, and challenges:

Mark Baum [24:25]: "Retail media is critical because media has been fragmenting, and retailers have millions of captive customers. However, defining ROI, measurement standards, and data utilization are still nascent areas that FMI is helping to standardize."

Mark discusses FMI's efforts to demystify retail media, develop common languages, and create roadmaps for effective implementation. He urges industry players to engage with retail media proactively to stay competitive.

4. Consumer Trends

Mark Baum highlights the importance of understanding the "market of one" — the individualized consumer — and the challenges in reaching and predicting consumer behavior:

Mark Baum [13:36]: "We need to get to the degree of personalization beyond the household, focusing on individual drivers of purchase behavior."

FMI's Initiatives and Programs

1. Research Report on Retail Media

Mark Baum announces an upcoming report in collaboration with Liz Buchanan from Nielsen IQ, set to release at FMI Midwinter. The report will cover:

• Understanding Retail Media: Beyond networks to strategy and components.
• Forecasting: Projections for the next several years.
• Framework: Detailed guidelines for executives and practitioners.
• Glossary of Terms: Establishing a common language within the industry.

Mark Baum [27:52]: "This report will break through the clutter and be specifically oriented to FMI membership and the industry at large."

2. Events and Collaborations

FMI hosts numerous events throughout the year, with Mark highlighting:

• Midwinter Conference: The flagship event with thousands of joint business planning meetings.
• FMI Tech at Midwinter: Dedicated sessions for technology providers, including pitch competitions.
• Specialized Events: Covering areas like Fresh Foods, Private Brands, Food Safety, Legal Compliance, and more.

Mark Baum [48:31]: "We run over a dozen in-person events ranging from Fresh Foods to financial management and grocery resilience."

3. Advocacy and Stakeholder Engagement

Mark explains FMI's role in advocacy, representing both large and small companies in political and regulatory arenas.

Mark Baum [31:09]: "For small companies, we are their advocacy. For larger members, we leverage collective interests to engage with lawmakers and regulatory agencies."

He emphasizes the importance of a collective voice to influence policy and protect industry interests.

Advice and Insights

Leadership Principles

Mark Baum shares his three P’s of leadership that guide him daily:

1. Purpose: The fundamental reason for action and motivation.
2. Passion: Sustains commitment and drives through challenges.
3. Pride: Instills a sense of honor and responsibility in the industry’s noble mission.

Mark Baum [10:20]: "Purpose is why you get out of bed in the morning. Passion keeps you true to the cause, and pride in what we do enriches lives and feeds families."

Trends in the Industry

Mark discusses how FMI stays abreast of industry trends:

Mark Baum [45:24]: "We collaborate with marquee strategy firms, adopt best practices from various industries, and invest in our team's continuous education and professional development."

He identifies key trends outside of retail media that are top of mind:

• Supply Chain Resilience: Adapting to workforce changes and ensuring continuity.
• Sustainability: Managing climate impact and embracing sustainable practices.
• Technology Integration: Leveraging technology as a critical enabler across all business facets.

Conclusion and Closing Remarks

Mark Baum encourages continuous engagement with FMI’s resources, emphasizing the importance of staying informed and proactive in addressing industry challenges.

Sri Rajagopalan thanks Mark for his insights and highlights the availability of FMI’s event calendar on their website, encouraging listeners to participate in upcoming events and leverage FMI’s platforms for growth and collaboration.

Sri Rajagopalan [50:25]: "You can find all of our content by visiting cpguys.com. If your company has thought leadership to contribute, drop us an email at contact@cpguys.com."

Mark Baum expresses appreciation for the opportunity to discuss FMI’s initiatives and reiterates the organization’s commitment to supporting the food industry through advocacy, education, and collaboration.

Mark Baum [51:39]: "It's always a privilege and a pleasure to be with you. Best wishes for the holidays and looking forward to future collaborations."

Peter V.S. Bond concludes with a standard disclaimer about the informational nature of the podcast content.

Notable Quotes:

• Mark Baum [05:14]: "Our mission is to advance the collective interests of the industry, deflect unwanted regulation, and most importantly, serve consumers and their communities."

• Mark Baum [10:20]: "Purpose is why you get out of bed in the morning. Passion keeps you true to the cause, and pride in what we do enriches lives and feeds families."

• Mark Baum [22:52]: "We're going to do everything within our power to narrow the spread between the PPI and the CPI and continue to produce quality, nutritious, delicious foods that Americans can afford and have access to."

• Mark Baum [24:25]: "Retail media is critical because media has been fragmenting, and retailers have millions of captive customers. However, defining ROI, measurement standards, and data utilization are still nascent areas that FMI is helping to standardize."

• Mark Baum [27:52]: "This report will break through the clutter and be specifically oriented to FMI membership and the industry at large."

Conclusion:

In this episode of The CPG Guys, Mark Baum provides an in-depth look into FMI Inc.’s role in advocating for the food industry amidst current challenges such as political instability, inflation, and the evolving landscape of retail media. He emphasizes FMI's commitment to education, collaboration, and strategic planning to navigate these complexities. The discussion highlights the importance of leadership grounded in purpose, passion, and pride, and underscores the necessity for continuous adaptation and proactive engagement within the industry.