You’d need a devoted weekly magazine to cover all the news coming out of Amazon’s many (many) products, services, revenue streams, and dramas. Their streaming channel is producing some of the best content out there (talking about you, Mrs. Maisel), apparently they are going to rebuild health care from the ground up, and New York’s governor is basically doing his best John Cusack Say Anything impression outside Bezos’s door.
Welcome to the second of our two-part series on the changing state of CPG and grocery. Last week we discussed the unique challenges manufacturers are currently facing as the relationship between consumer, retailer, and manufacturer all undergo radical shifts.
We all know that CPG is hurting, but we also know it’s not going anywhere. Unless we all roll up our sleeves and dig into an agrarian renaissance, we will always need consumer packaged goods—that’s not changing unless we all start farming. And I for one do not farm.
What’s changing, then, is where, how, and from whom consumers are getting these goods. Formerly the exclusive territory of CPG titans like Unilever and Kraft, CPG is increasingly fragmented and less monolithic.
And with Kroger and Microsoft’s new partnership, the enemy’s name is clear: Amazon.
The robots are coming! Sure, that sounds like a panicked utterance straight from whatever sequel or reboot the Terminator franchise is about to unleash. But it also could describe the grocery industry where several different grocers are piloting in-store robots to perform a litany of maintenance, stocking, and even customer service tasks.