Podcast Summary: The CPG Guys – "The CPG Industry CAGNY 2025 Recap"

In the February 24, 2025 episode of The CPG Guys, hosts Peter V.S. Bond and Sri Rajagopalan delve into their experiences and insights from attending the highly anticipated CAGNY 2025 conference. This comprehensive summary captures the essence of their discussions, highlighting key points, critical analyses, and notable observations from the event.

1. Introduction to CAGNY 2025

Peter V.S. Bond opens the conversation by emphasizing the growing significance of retail media in the Consumer Packaged Goods (CPG) and Fast-Moving Consumer Goods (FMCG) sectors:

"Retail media is rapidly becoming the go-to channel for brands, aiming to engage consumers with measurable performance along the path to purchase."
[00:00]

He introduces the collaboration between Cornell University and The CPG Guys to launch an executive education program focused on retail media strategies, underscoring the necessity for brands to integrate retail media into their omnichannel marketing budgets.

2. Venue and Attendance Insights

Sri Rajagopalan and Peter V.S. Bond recount their arrival at the Hilton Signia Bonnet Creek in Orlando, noting the shift from previous years when the venue was in Boca Raton. They observed a more accessible setting, especially for analysts who often attend with families during spring break:

"It's scheduled to coincide with the spring break week for all the private schools in New York... They moved it to a lovely hotel, the Hilton Signia Bonnet Creek."
[03:25]

Both hosts reflect on their increased visibility this year, recalling interactions with industry peers and new acquaintances, such as Laura Cooper from the Wall Street Journal.

3. Overall Conference Experience

The hosts discuss the logistical aspects of the conference, praising the organization by Cagney and Weston:

"I have no real complaints... It was a great event."
[09:55]

However, Peter V.S. Bond critiques the catering choices, noting a preference for more diverse food options despite the high-end resort setting:

"They used a lot of the CEOs use buzzwords on stage... I was more picky about the food."
[09:55]

4. Assessment of Presentations

The core of the discussion centers on the quality and substance of the presentations at CAGNY 2025. Both hosts express underwhelmed sentiments regarding the industry's approach to pressing challenges:

a. Lack of Focus on Volume Growth

Peter V.S. Bond laments the scant attention given to volume growth challenges, a recurring theme in industry discussions:

"Few and far between... How many addressed the elephants in the room? Volume, private label and growth."
[11:58]

Sri Rajagopalan concurs, emphasizing the absence of strategic responses to volume declines despite clear signals from market dynamics and consumer behavior shifts:

"We could have seen strategies of what brands are going to do to at least take it head-on. And what I saw was a lot of 'I have very strong brands and I’m going to lean back on them.'"
[14:31]

b. Neglect of GLP-1 Impact

Both hosts highlight the overlooked discussion on the impact of GLP-1 (Glucagon-like peptide-1) on food manufacturing and consumer purchasing behaviors:

"There was one presentation referenced retail media... they didn't address how they were going to do it."
[14:16]

Conversely, ConAgra's presentation, led by Bob Nolan, stands out for its depth and proactive stance:

"Bob Nolan took them through an incredible story filled with insights and outcomes... very impressive."
[16:38]

Similarly, Kenvue's understated yet impactful presentation by Thibaut received high praise for meaningful use of AI and detailed analytics:

"They talked about their agency consolidation and what kind of value that delivered back to the shareholder... very thoughtful."
[32:32]

c. Retail Media Optimization

A significant portion of the critique revolves around the limited focus on retail media optimization. Despite its importance, only a single presentation touched upon the subject, with Colgate Palmolive being a notable exception for its strategic approach:

"Colgate Palmolive... actually tackling showing how their media is growing... they leaned in."
[26:15]

Elf Beauty emerged as a beacon of innovation, leveraging social media, influencers, and disruptive strategies to successfully grow volume amidst industry-wide declines:

"They are the only major cosmetics brand to actually grow volume last year... very interesting."
[29:55]

5. Retail Media Strategy Executive Education Program

Both hosts advocate for the newly launched Retail Media Strategy Executive Education Program at Cornell Tech, detailing its objectives and benefits:

"We are hosting a four-day in-person seminar in New York City... bringing together leading luminaries from the retail media ecosystems."
[33:25]

The program aims to equip industry professionals with the knowledge to effectively budget for retail media, optimize tech stacks, measure performance, and foster robust brand-retailer partnerships in a shifting power dynamic.

6. Walmart’s E-Commerce and Retail Media Expansion

A substantial segment of the conversation is dedicated to Walmart's impressive growth in e-commerce and retail media:

"Walmart made its quarterly earnings release... their U.S. e-commerce sales were up 20% year over year."
[36:31]

Peter V.S. Bond underscores the strategic importance for brands to engage with Walmart’s third-party marketplace, predicting a future where major retailers like Amazon may shift entirely to third-party models:

"In the next five years, Amazon will exit 1P and will be a 3P marketplace exclusively... if you're going to face that, you better be into Walmart's marketplace."
[38:39]

Sri Rajagopalan emphasizes the need for brands to understand and leverage these marketplaces to sustain long-term growth, especially for SKUs with lower sales volumes.

7. Personal Anecdotes and Experiences

Beyond the analytical discussions, the hosts share personal highlights from the conference, including witnessing a SpaceX rocket launch and enjoying local cuisine:

"We drove to Cape Canaveral and got to see a rocket launch. Bucket list moment."
[44:19]

These experiences underscore the human element of attending such high-profile industry events, fostering connections and creating memorable moments.

8. Conclusion and Future Directions

Wrapping up, Peter V.S. Bond and Sri Rajagopalan reflect on the necessity for the CPG industry to actively address volume challenges with clear, actionable strategies rather than relying solely on brand strength and traditional advertising methods. They invite brands to share their growth plans and indicate upcoming episodes featuring insights from Wall Street analysts like Nick Modi from Royal Bank of Canada.

"What are we doing as brands? By now we should have answers, or at least a bat to answers."
[43:55]

The episode concludes with anticipation for future discussions centered around emerging topics such as artificial intelligence in media and innovative retail strategies.

Notable Quotes:

• "Retail media is rapidly becoming the go-to channel for brands, aiming to engage consumers with measurable performance along the path to purchase."
  — Peter V.S. Bond [00:00]

• "It's a very dynamic ecosystem between brands and retailers right now."
  — Peter V.S. Bond [35:37]

• "If you're not going to do this... It was like, why come? Why come?"
  — Peter V.S. Bond [21:26]

• "They just keep using the word AI to look cool in front of Gen Z and millennials."
  — Sri Rajagopalan [19:27]

Key Takeaways:

1. Retail Media is emerging as a pivotal channel for CPG brands, necessitating strategic integration into marketing efforts.
2. The CAGNY 2025 conference showcased limited focus on pressing industry challenges like volume growth, with only select companies providing insightful strategies.
3. Conagra and Kenvue stood out for their innovative and transparent presentations, setting benchmarks for industry peers.
4. Walmart's aggressive expansion in e-commerce and retail media underscores the need for brands to adapt and optimize their presence in third-party marketplaces.
5. Upcoming initiatives, such as the Retail Media Strategy Executive Education Program, aim to bridge knowledge gaps and empower industry leaders with actionable strategies.

For those interested in gaining deeper insights into the CPG industry's evolving landscape, The CPG Guys continue to provide invaluable analyses and expert discussions. Stay tuned for upcoming episodes featuring exclusive interviews and expert opinions to navigate the dynamic world of consumer goods.