Podcast Summary: The Future of Grocery – Introducing GroceryLab with FMI’s Doug Baker

Podcast: The CPG Guys
Hosts: Peter V.S. Bond & Sri Rajagopalan
Guest: Doug Baker, VP of Industry Relations, FMI
Release Date: April 1, 2026

Overview

This episode explores the evolving landscape of grocery retail and technology adoption, focusing on the introduction of GroceryLab—FMI’s new event designed as a collaborative innovation forum for retailer, supplier, and technology leaders. Doug Baker joins Sri and Peter to discuss industry challenges, why GroceryLab is different, and how this hands-on event aims to accelerate the future of omnichannel grocery experiences.

Key Discussion Points and Insights

1. Historical Struggles with Technology Adoption in Grocery

[07:54]

• Doug Baker’s Perspective:
  • Grocery is “built on execution and thin margins and enormous complexity,” making tech adoption risky.
  • Innovation has often lingered unscaled due to “store labor and network constraint and legacy systems and competing priorities.”
  • Tech decisions were often made in silos, disconnecting innovation from operational realities.
  • Today’s “pressure is different”: labor shortages, supply chain volatility, and evolving consumer expectations are forcing holistic, cross-functional thinking.
  • The challenge is not just buying more tech, but connecting “strategy and the data and the people and the process in a way that makes execution easier.”

  “Grocery has never lacked ingenuity. It’s often lacked the conditions to scale it.” — Doug Baker [07:56]

2. The Story and Purpose of GroceryLab

[10:12]

• Why Detroit? Symbolically chosen for its resilience and reinvention, paralleling grocery industry struggles and opportunities.
• Event Philosophy:
  • Shift from passive presentations to active, hands-on labs.
  • Move beyond “the what and the so what, and focus on the now what.”
  • Encourage participants to collaboratively solve for real friction points—moving from isolated point solutions to integrated collaboration.

  “We haven’t come together collaboratively. We’re bringing point solutions to retailers. Detroit had to get creative to survive…just like grocery.” — Doug Baker [11:14]

3. GroceryLab Format: The Hands-on, Cross-Functional Approach

[13:30]

• Not another conference:
  • Designed for participation, not passive consumption.
  • Labs bring together technologists, commercial leaders, and retailers to jointly design and test solutions.
  • Multiple technologies and multiple retailers will work together in cross-functional teams, not isolated vendor demos.

  “It’s about taking multiple technologies that are collaborative and bring to life an experience…so that when [attendees] leave, they get a really stronger grasp of what the technology is actually doing.” — Doug Baker [14:34]

• Active learning:
  • “Watch you make the sausage, be a part of making the sausage.”

4. The $10B Question: Friction in Tech Execution

[17:33]

• Grocery invested $10B in tech in 2024, but friction remains in execution.
• Biggest Challenge: Integration, not investment.
  • Layering new solutions onto fragmented, unharmonized data causes issues.
  • Rapid advancement creates anxiety about “where to place bets.”
  • Organizational/process roadblocks—”if teams are not aligned around the same metrics and workflows, even strong investments can underperform.”

  “You can’t build a solid house on a weak foundation. And data is the foundation.” — Doug Baker [19:38]

5. The AI Adoption Gap

[21:07]

• Notable stat: 93% of suppliers using AI vs. only 47% of retailers.
• GroceryLab’s Role:
  • To bridge this gap, fostering shared understanding and practical alignment on AI use (planning, forecasting, personalization, content, supply chain).

  “The gap is significant and it matters because the future of grocery will be shaped by how effectively trading partners work together… It’s not about who is ahead, but moving forward together.” — Doug Baker [21:15]

6. In-Store Tech: From Theory to Practice

[24:06]

• Connected Store Lab Example:
  • Two sides: Customer-facing (sexy) and operational (forecasting, loss prevention, efficiency).
  • Goal is to drive practical, incremental improvements on both fronts, not just “change the entire store format.”

  “There is the sexy side of connected store, and there’s the not so sexy side…but they both serve a different purpose.” — Doug Baker [24:13]

7. Shopper Engagement and the New Loyalty

[25:55]

• Moving beyond legacy coupons to “hyper-personalization.”
• AI and real-time digital personalization will drive individual relevance over blanket discounts.
  • Example: Don’t just ask for a phone number; deliver personalized offers that inspire returns and higher basket sizes.
• Learning from other sectors: Like airlines and hotels, meaningful loyalty requires unique value propositions and experiences—not just point accrual.

  “If you’re going to give me a discount, give me the discount that means something to me. Not to Peter, not to Sri.” — Doug Baker [26:29]

8. Breaking Down Internal Silos for Innovation

[30:26]

• Real transformation demands cross-functional participation—merchants, marketers, tech, supply chain, ops, retail media all in the same room.
• GroceryLab’s exercises are structured to provoke this collaboration and co-development.

  “We have a responsibility to put an event together that really brings these people together and gives them something tangible that they can do when they get back to their organizations.” — Doug Baker [31:37]

9. Founding Committee & Themes

[32:07]

• Built with industry advisory board and partners, including Think Blue and leaders from grocery, supplier, and adjacent sectors.
• Seven themes/labs covering:
  • AI & Data
  • Value Creation
  • Consumer Engagement
  • Supply Chain
  • (Full list covered at [32:40])
• Notably, language and structure are deliberately different: no “keynotes,” but “briefings,” and advisory input comes from inside and outside the food industry.

10. Tangible Takeaways: Beyond the Conference

[35:06]

• Each attendee receives a playbook “blueprint” for implementation.
• GroceryLab is by-invitation, capped at 200 for a true “movement” (not just an event).
• Participants will be grouped into year-long cohorts for continuous digital follow-up, new insights, and roadmap support.

  “When these leaders walk out… what is the tangible takeaway? …Every attendee will receive a playbook… and we’re not letting them go. This is more than an event, this is a movement.” — Doug Baker [35:06]

Notable Quotes & Memorable Moments

• "Technology adoption in grocery has been slower— not because leaders didn’t recognize the opportunity, but because the business had little room for disruption." — Doug Baker [08:24]
• "If you don’t have the courage and ability to adapt as an organization, you’ll fall behind—it’s exponential growth we’re experiencing." — Doug Baker [12:04]
• "Most technologies don’t fail because they are bad technologies. They fail because the organization wasn’t able to embrace them." — Doug Baker [19:06]
• "GroceryLab is for participation, not passive consumption… it’s not someone on stage with a deck, it’s actually doing the work together.” — Doug Baker [13:48]
• "Everyone thinks they're behind on AI, nobody believes they're leading." — Doug Baker [22:48]
• “Loyalty isn’t just a number and a discount… It’s a data-driven relationship, based on individual relevance.” — Doug Baker [25:54]
• "We don’t need another conference just to have a conference. If we’re going to do something, it needs to be unique, different, and relevant.” — Doug Baker [32:54]
• "It’s not a keynote, it’s a briefing.” — Doug Baker [34:00]
• "This isn’t just an event, it’s a movement.” — Doug Baker [35:45]

Important Timestamps

• [07:54] Doug on operational realities hindering technological progress
• [10:12] GroceryLab’s origin, why Detroit
• [13:30] Format difference—hands-on, cross-functional, active participation
• [17:33] Where the friction is: the difficulty of integration
• [21:07] AI adoption gap; event’s approach to bridging it
• [24:06] In-store tech challenges and the Connected Store Lab
• [25:55] Shopper loyalty: from coupons to personalized engagement
• [30:26] Breaking internal organizational silos
• [32:40] How advisory input shaped GroceryLab’s themes
• [35:06] Playbook takeaways and ongoing engagement (“not letting them go”)
• [37:53] Host takeaways: This is a movement, not another “networking” event

Episode Flow and Tone

The conversation balances optimism and realism, with Doug providing a candid, insider’s view of what holds grocery retail back and where the boldest opportunities lie. The episode has an energetic, collaborative tone, as evidenced by the friendly ribbing between Peter and Sri, and the actionable optimism Doug brings to technology and organizational change. The approach is highly pragmatic—emphasizing participation, integration, and playbooks over buzzwords or legacy conference formats.

Final Takeaway

GroceryLab is positioned as a breakthrough forum for grocery’s future—addressing technology, organizational silos, AI, and customer engagement with hands-on, collaborative, and cross-functional labs. Its aim is real action and measurable progress, not just conversation.

For more information or to request an invitation:

• fmi.org/grocerylab
• Or search “FMI Grocery Lab”