Some of grocery’s toughest competitive battles are being fought away from the shelf right now.
This week, Duke Winston looks at old Pepsi FTC case and what it reveals about pricing leverage among manufacturers and major retailers, while I’m making the argument that the industry needs to take back the narrative on electronic shelf labels before critics define the technology for consumers; they’ve already got a head start.
Don Walker looks at two categories undergoing rapid change: produce, where brands, convenience and CPG-style merchandising are creating new opportunities, and GLP-1 shoppers, whose smaller but very deliberate baskets demand a different kind of retailer outreach.
And finally Jessica Smith examines the leadership change at General Mills, where incoming CEO Dana McNabb inherits a clear and difficult assignment: restore profitable growth.
Five different stories sure, but a common thread runs through them: finding an advantage in a trade that keeps getting more complicated.
You can read all the stories below…
The Pepsi Case Offers a Rare Look Behind Grocery Pricing
Most grocery price wars are fought in plain sight. The Pepsi FTC case suggests some of the most important battles may happen much farther upstream. The allegations involving Pepsi, Walmart and Food Lion were never adjudicated, and that distinction matters. But the details revealed in the now-dismissed case offer a fascinating look at how pricing, promotions and retailer leverage can interact behind the scenes — and why an old antitrust law suddenly looks considerably more relevant to the grocery business.
Duke Winston has the details for you right here…
Produce Is Starting to Look a Lot More Like CPG
Freshness, quality and price will always define produce, but the category is getting considerably more sophisticated. Brands, private label, packaging, proprietary varieties and convenience are giving retailers more ways to differentiate products that once competed largely on appearance and price. Salad kits and fresh-cut products make the shift especially clear.
Retailers Need to Take Back the Story on Electronic Shelf Labels
Electronic shelf labels have spent too much time being defined by what shoppers fear retailers might do with them. That’s allowed surveillance pricing to overshadow the technology’s real potential: better price accuracy, easier store execution and tools that can genuinely improve the shopping experience. Walmart is beginning to show what that upside can look like. The job for the rest of the industry is bigger.
GLP-1 Shoppers Are Eating Less. Retailers Can Still Win More of the Basket
GLP-1 users may be spending less on groceries overall, but what remains in the basket is becoming more deliberate — and potentially more valuable. These shoppers are gravitating toward produce, protein, fiber and foods that make nutrition easier to understand. For supermarkets, the opportunity is increasingly about helping them make those choices. Retailers that connect merchandising, nutrition guidance and targeted outreach around GLP-1 needs have a chance to capture more of a smaller basket.
Don Walker looks at how to serve these shoppers as their habits evolve…
Dana McNabb Is Taking On General Mills’ Growth Challenge
General Mills knows what its next CEO needs to accomplish. Dana McNabb will take the top job Jan. 1 with a straightforward but difficult mandate: get the company growing profitably again. The 27-year General Mills veteran certainly knows the operation, having run businesses across cereal, international, North America Retail and Pet. Now comes the harder part. With consumers watching their spending and packaged-food growth difficult to find, McNabb has to turn modernization, innovation and better demand generation into actual sales growth.