‘Co-opetition’ encourages members to share ideas, resources, solutions
by Carol Radice / senior content creator
Operating a business these days is no easy feat. And today’s business climate is even more difficult for independent grocers. Competition, supply chain challenges and tight budgets mean everyone involved in the grocery industry needs to bring their “A” game all the time.
Retailer Owned Food Distributors and Associates (ROFDA) is a national cooperative organization founded 60 years ago to address the needs of independent retail grocers.
ROFDA’s members comprise eight cooperative wholesalers, nearly 7,000 stores and more than 10,000 employees. Combined, they represent more than $35 billion in annual retail sales.
Since ROFDA was established as a co-op, annual profits are redistributed back to its members. The group also has vendor agreements in place with several partners that offer rebate or volume incentives that are redistributed to wholesale members.
An added benefit of ROFDA membership is the ability to aggregate this volume and take advantage of incentives that members most likely wouldn’t be able to claim on their own.
ROFDA’s board of directors includes some of the most influential people in the grocery industry: Randy Arceneaux, president and CEO, Affiliated Foods Inc.; Dan Funk, president and CEO, Associated Wholesale Grocers; Manard Lagasse Jr., president and CEO, Associated Grocers Inc.; Jerry McCann, president and CEO, Piggly Wiggly Alabama; Amy Niemetscheck, president and CEO, Certco; David Rice, president and CEO, Associated Food Stores (SLC); Ray Sprinkle, president and CEO, URM; and Michael Violette, president and CEO, Associated Grocers of New England.
Heart of ROFDA
Coining the phrase “co-opetition,” ROFDA encourages members to share ideas, resources and solutions to help level the playing field and create parity for today’s independent
retailers.
Some of the ways it accomplishes this is by giving members exclusive access to tools, resources, industry best practices and the collective knowledge of its leaders and members.
“In many ways, independent retailers are more than just a grocery store. They are often the center of the communities in which they operate,” said Jeff Pedersen, president and CEO of ROFDA. “Independents are up against some formidable challenges, and ROFDA is here to help support their business so that they can successfully compete against stores of all sizes.”
The organization’s biannual conferences focus on sharing information.
“We feel it is important to always be bringing new ideas to the table, as well as building connections and facilitating collaboration that can help level the playing field for the independent retailer,” Pedersen said. “The meat of our conferences are getting together to learn from each other and see how we can move things forward, either as a group or individually.”
The ROFDA Board of Directors congratulates Ray Sprinkle, URM Stores, on his induction into the Food Industry Hall of Fame: Jeff Pedersen, ROFDA; Dan Funk, Associated Wholesale Grocers; Randy Arceneaux, Affiliated Foods; Sprinkle; Mike Violette, Associated Grocers of New England; Amy Niemetscheck, Certco; and Roger White, Associated Food Stores.
For Arceneaux, 2024 marks his 15th year on the ROFDA board. During this time, he’s seen his share of changes in the organization and how it has impacted his company.
“When I first got on the board, about 15 or 16 member warehouses were part of ROFDA. Today we are at eight member warehouses, but we are a more vibrant group that gets more accomplished than 15 years ago.”
Arceneaux said the one thing that has not changed is the ability to come together with a common goal in mind – to help independent grocers compete and thrive in the markets they serve.
Funk
“I feel the leadership we have in Jeff and the willingness of the CEOs, retailers and our multiple share groups that have evolved over the last seven to eight years have made us a much better organization working in the same direction,” he said.
Since its inception, working collaboratively has been ROFDA’s hallmark.
“It has always been important to us to provide a successful path to implementation for our members,” Funk said. “ROFDA has also worked to strengthen our partnerships and grow participation from product, service and program providers who gain intimate access to leaders within our membership to showcase new and innovative solutions to our membership.”
Gathering place
ROFDA’s conferences each spring and fall provide its wholesale, retail and associate members an opportunity to collaborate, both in large and smaller groups.
The organization continually reviews feedback and works to reshape its conferences to ensure the best value is always presented, according to Niemetscheck.
“Recognizing that associate members need to show an ROI for conference attendance, ROFDA has done a nice job at incorporating feedback to show associate members the value of being part of this group,” she said. “As the wholesalers continue to support bringing a variety of retailers, we have seen the associate members find a means to reach a group that was not directly available in the past.”
Niemetscheck added that ROFDA will also continue to create problem-solving share groups for the benefit of the independent grocer. Having associate members be a part of that solution should continue to show value.
Amy Niemetscheck
“Conferences only happen if members continue seeing value in attending. We are greatly leaning in to ensure that happens,” she said.
Niemetscheck said another way ROFDA adds value is through best practice surveys. Wholesalers can share key performance indicators across several organizations.
“The data we can receive by being part of supply chain reports with our peers and competitors in an anonymous fashion – and the partnership that arises from the associate member who conducts the survey, and their feedback – has been a great benefit for us.”
Combined with the insight share groups provide, the surveys create extreme value for members.
“It always comes back to that alignment in our missions –and that being the independent grocer’s success,” Niemetscheck said. “When we lean in with that being the focus, it’s amazing the benefit ROFDA members continue to see.”
Key ROFDA initiatives
ROFDA is focused on adding value to its members and the
independent retailers they support.
“A few key areas we are bringing together are new programs and services that we can collectively work on to help our companies and retailers succeed. Together, we have focused on strategic opportunities like Retail Media Network programs and areas of industry impacts like the Food Safety Modernization Act (FSMA 204),” Funk said.
The act expands the requirements on traceability datakeeping for those who manufacture, process, pack or hold foods on the Food Traceability List. The FDA aims to have more streamlined processes in place to react to and track down potential contaminants.
Distributors must ensure they prepare and trace key data elements and critical tracking events. The compliance date is Jan. 20, 2026.
“Naturally, the FSMA 204 initiative is not a choice but a mandate, and the great thing about our ROFDA family is the ability to come together and work toward options that make sense for not only our member warehouses but also, more importantly, the retail members we all serve,” Arceneaux said.
Given that co-ops are owned by their members, the connection with each other to deal with these types of initiatives with good solutions is important.
“As the vendor community changes their go-to-market strategies and how the money is spent to accomplish their goals, we too must adapt and change to ensure our members are getting their fair share of the marketing monies available to not only drive business but also compete in the marketplace,” Arceneaux said.
“As a ROFDA family, many of us have come together and formed a Retail Media Network share group and worked to come together with solutions for this space.”
Maintaining relevance means adapting to trends, technologies, challenges
by Carol Radice / senior content creator
Retailer Owned Food Distributors and Associates (ROFDA) has been around for more than 60 years, but the group has never been one to sit idle.
From growing membership and expanding their conference to adjusting bylaws, ROFDA leaders continue to demonstrate they have independent grocers’ best interests at heart.
“Our end goal is helping independent retailers compete and be successful. Our mission is to make sure they are going to be OK and that they can fight the competition on a level playing field,” said Jeff Pedersen, president and CEO of the organization. “So, with that in mind, our board decided one way we could do that is by opening membership up to all wholesalers, not just co-ops.”
For Pedersen it’s all about getting the right people to participate in ROFDA.
“We see that being defined as any wholesaler who is focused on the independent retailer and those who are making sure these retailers are able to effectively compete every day,” he explained.
Michael Violette, president and CEO of Associated Grocers of New England and chairman of ROFDA’s board of directors, noted that expanding membership has been one of the top goals the group has been working toward.
“Historically, being a cooperative has been a membership requirement for organizations to join ROFDA,” he said. “However, the grocery industry has changed significantly
since ROFDA’s inception, with increased consolidation and competition from big box retailers. Expanding our membership to include non-cooperative wholesalers is essential for broadening our network’s influence and fostering greater collaboration.”
Violette went on to note that independent wholesalers and retailers, regardless of whether they’re organized as cooperatives, face the same pressures – rising costs, shrinking margins and the need for advanced technology and marketing strategies to stay competitive.
“By welcoming non-cooperative wholesalers into ROFDA, we expand the scale of our efforts and ensure that more independent operators can benefit from shared knowledge, resources and the collective strength of the group,” he said.
Expanded retailer presence
In recent years, ROFDA has expanded retailer involvement in the organization and its conferences. Pedersen said having more retailers present at the meetings has had many positive benefits.
“When retailers participate at our conferences, it’s like that EF Hutton commercial – everyone is focused on what the retailers have to say,” he said. “This is really the priority. This is what gets us up and charge the hill every day. We need to understand their issues and then
try to solve for the things they may be struggling with.”
Inviting retailers to the conferences has been a positive, agreed Ray Sprinkle, president and CEO of URM Stores Inc. and a member of ROFDA’s board of directors.
“The things they share with us are invaluable,” he said. “At the same time, it’s been a learning curve for us as we continue to expand retailer involvement in our conference. We want to make sure we are effectively utilizing their time and giving them the opportunity to expand their knowledge.”
For Pedersen, Sprinkle and the entire ROFDA board, every change they make comes down to how they can better serve the independent retailer.
“We are looking to add members that have that same philosophy – and that is, how we can ensure the independent retailer’s success,” Sprinkle said.
Another goal is maintaining ROFDA’s relevance.
“Ensuring ROFDA remains relevant in the grocery industry is perhaps the most critical goal of all,” Violette said. “With eight wholesalers serving over 7,000 independent retailers and generating approximately $35 billion in sales, we have a substantial market presence. As is similar within any industry, maintaining relevance means continuously adapting to new trends, technologies and challenges.”
By focusing on their aggregated influence and collective resources, Violette said ROFDA not only secures its position but also ensures it can continue to provide members with the tools, support and opportunities they need to succeed.
Dan
Mike Violette
From the start, collaboration has been ‘cornerstone of ROFDA’s success’
by Carol Radice / senior content creator
It’s impossible to talk to the board of directors for Retailer Owned Food Distributors and Associates (ROFDA) without touching on the topic of collaboration and how it helps the organization stand out.
“The old saying ‘two heads are better than one’ is especially true in the industry that we work in,” said Randy Arceneaux, president and CEO of Affiliated Foods Inc. “Independent grocers and wholesalers are operating in a very competitive environment, and they are up against the giants of the industry.
“The ability to come together and share successes as well as failures makes us stronger in the respective markets in which we compete.”
Calling collaboration “a cornerstone of ROFDA’s success,” Michael Violette, president and CEO of Associated Grocers of New England, said it has been a key pillar since the group’s founding.
“In today’s grocery industry, which is undergoing rapid evolution and transformation, collaboration is more critical than ever. As leaders in this space, we recognize that staying ahead of the curve is no longer just an aspiration, it’s a necessity.”
By working together, ROFDA members gain access to diverse perspectives, share resources and knowledge and improve their ability to solve problems effectively.
“This collective approach enables us to tackle challenges that individuals might struggle to overcome alone, ultimately helping each of our wholesalers and independent retailers stay competitive and responsive to the changing market,” Violette said.
He added that the ability to talk openly with other co-ops, as well as the various companies that serve independents, is critical to all their successes.
Ray Sprinkle, president and CEO of URM Stores Inc., agreed.
“This environment is unique, and we need to service independents in a way that allows them to be as competitive as possible,” he said.
Share group power
With collaboration a central focus, ROFDA has increased the opportunities for its share groups to meet.
“One of the best examples of ROFDA’s collaborative efforts are the share groups present at each of our biannual conferences,” Violette said. “These groups are made up of wholesaler representatives from different areas of the business – including a dedicated group for retailers – that meet to discuss challenges, successes and best practices. Participants openly share firsthand experiences, both successful and not, creating a valuable learning environment.”
These conversations are so impactful that many share groups continue to meet outside of the conferences, further strengthening the deep relationships built within ROFDA.
For Sprinkle, taking advantage of the many collaborative opportunities outside of conferences has been particularly beneficial.
“We represent the independents’ best interests, but it takes clout to level the playing field,” he said. “Whether it’s an operational, finance, HR, food safety or procurement issue, we get everyone together as a group – not only at the conferences but on conference calls and on-site visits.
“We have share groups that meet at a warehouse site, so they actually can see what’s being talked about in person, see how something works, put their hands on it and talk to the individuals throughout the organization that are actually making it happen.”
Sprinkle added that it has been immensely helpful to look at what’s working in someone’s warehouse and see how he can adapt that concept for URM.
“I’d rather steal an idea from another warehouse than try to blaze that path by myself,” he said. “One of the greatest things about ROFDA is the warehouses that are willing to share their experiences. [They can] tell us where the pitfalls are, how they would do something differently. That shortens the learning curve significantly, and it allows us to look at different systems in operation and find the one that works best for us.”
Amy Niemetscheck, president and CEO of Certco, pointed out that true collaboration at RODFA is possible because the group and its wholesalers hold the needs of the independent grocer at the center of everything they do.
“ROFDA, and all wholesalers part of it, have two key words that are shared among their missions, and that is the independent grocer being the ‘critical piece.’ Collaboration and problem-solving together for the benefit of the independent grocer can and will continue to be a focus that can happen at the level of ROFDA due to that alignment,” she said.
Niemetscheck cited the focus on retail media networks, saying the fact that all ROFDA houses are aligned rather than competing against one another when it comes that initiative has given it a tremendous amount of traction.
“The ability to utilize associate members to leverage our collaboration on this topic has been amazing to see,” she said. “I look forward to the board continuing to put together share group synergies that will continue to tackle relevant issues that all of us are facing, always keeping in mind those words that keep us focused … independent grocers and their success.”
Arceneaux noted that the basis of ROFDA’s share groups is just that – “sharing the ideas that make us individually good in our own operations, within our markets, and then the coming together to be better as one.”
Dan Funk, president and CEO of Associated Wholesale Grocers, said collaboration is critical to success in business today.
“Working together to solve challenges and help achieve outcomes we could not do individually is critically important in our industry,” he said. “Each member company has programs or services that we have invested in over the years. Those that stand out can become solutions for other ROFDA members so we can utilize each other’s strengths to help create opportunities in our individual businesses.
“ROFDA helps as a connector between partners who attend conferences and between our member companies to help each of us grow our individual businesses.”
ROFDA also facilitates learning from its benchmarking activities.
“We expanded some of our distribution best practices to include our member satisfaction survey information, where ROFDA members can individually benchmark how our own customers and members are rating our performance compared to the overall performance of ROFDA members,” Funk said. “This has been another value-added tool for us to use to focus on continuous improvement within our business.”
‘Entire community works together for one common goal’
“ROFDA is very different from most trade show organizations. It creates true connections through unique small group and one-onone meetings between wholesalers, retailers and vendors. The entire community works together for one common goal, which happens to be the same as our company’s – bolstering independent grocers.
“As a young company, ROFDA has helped us tremendously. Once a couple of members met us, learned our vision, saw our product, they began encouraging others to look at us. The one-on-one meetings scheduled on our behalf allowed us to back up those recommendations with a vision for solutions that benefit wholesaler and retailer alike – in the end, delivering a better customer experience.”
– Robert Austin, President, Empower Fresh Co.
Randy Arceneaux
Relationships helping create ‘community that thrives on mutual success’
by Carol Radice / senior content creator
The leaders of Retailer Owned Food Distributors and Associates (ROFDA) recognize the power of having access to educational resources and have turned the act of sharing information into an art form.
“My peer group is fantastic, and they are readily available to me if I’ve got a situation that I have questions about” said Ray Sprinkle, president and CEO of URM Stores Inc. and a member of ROFDA’s board of directors.
“It could be something as simple as a question about a particular software operating system initiative that my company is considering. Hearing someone else’s user experience with that software is invaluable information.”
Sprinkle’s company recently toured a ROFDA member’s warehouse to see its software in action. Afterward, URM hosted a backhaul conference.
“We have had an initiative for the last three years to expand our backhaul,” he said. “We’ve gathered a lot of information during this time on how it’s impacted our operations – from improving our service levels, keeping our trucks loaded both ways, serving as a source of income or improving our ability to lower cost of goods by putting more product on our trucks.”
Citing upcoming industry-wide challenges such as the Food Safety Modernization Act, known as FSMA 204, Sprinkle said the ability to share experiences with his peers is indispensable.
“With the Food Safety Modernization Act about a year or so away from being implemented, we’re all collaborating on best
practices and what we are doing to be compliant in January of 2026 so that we can ensure the safety of all products that we ship to the independents.”
Dan Funk, president and CEO of Associated Wholesale Grocers and a fellow ROFDA board member, said his company’s participation in the organization has been beneficial in many ways.
“It provides a group of peer companies for networking and relationship building, while still being able to compete,” he said. “AWG and I personally have enjoyed many of the groups our teams have participated in to learn and share, both ups and downs, which helps each of us.
“Our hope is that we can continue to provide as much value to the membership as we can bring back to our business from our fellow ROFDA members.”
Funk also has witnessed many vendor partners grow their business through ROFDA participation.
“We have made multiple vendor partner decisions based on the meetings, discussions and presentations through ROFDA,” he said. “I have also really enjoyed seeing the ROFDA retailer share group continue to grow ideas and solutions from our retail members who participate and what they have been able to gain by participating with their peers.
“While we are competitors, our involvement in ROFDA allows us to collaborate strategically, all with the shared goal of supporting independent grocers.”
Michael Violette, president and CEO of Associated Grocers of New England, recalled when he took on his current role in 2016 that one of the most valuable resources he had access to was the network of ROFDA CEOs and senior management.
“As a new CEO, it can sometimes feel uncomfortable or
impractical to seek advice from those within your own organization,” he said. “But through ROFDA, I had the ability to reach out to seasoned CEOs in the grocery industry. The wisdom and guidance I received from them was invaluable in helping me navigate the complexities of leading a company – a resource I continue to rely on and learn from to this day.”
Violette, who also is ROFDA board chair, said one of the most meaningful aspects of ROFDA is the relationships that are formed.
“Whether it’s at our conferences or through regular interactions with one another – wholesalers, retailers, vendors and industry partners alike – the relationships built within ROFDA are truly special,” he said. “There’s a genuine interest in helping one another succeed, and these connections are often more personal and heartfelt than in any other organization I’ve been part of. It’s not just about business – it’s about creating a community that thrives on mutual success.”
A standout example of this, he added, is the development of AGNE’s Shelf Management Services (SMS) department. Violette said the initiative was inspired by a fellow ROFDA member’s success story developing a similar program.
“Seeing the value of their experience, we at AGNE adopted and adapted the SMS program for our retailers, which has proven to be mutually beneficial to all involved,” he said. “What’s more, two other ROFDA wholesalers have successfully implemented their own SMS program variations after hearing about our experience.
“This kind of transparency and idea-sharing is what sets ROFDA apart, as well as what leaves that lasting impression on so many.”
COVID-19 pandemic changes were catalyst for involvement of CPG firms
by Carol Radice / senior content creator
With any group, there are bound to be changes in membership over time. For Retailer Owned Food Distributors and Associates (ROFDA), the COVID-19 pandemic was the catalyst that dramatically changed how people do business.
Jeff Pedersen, the organization’s president and CEO, said this change is particularly evident by the number of consumer packaged goods companies involved today with ROFDA.
“Prior to COVID, I would say that there were healthy relationships between most wholesalers and the CPGs and most retailers and the CPGs. Then we got into COVID, and we had supply chain disruptions, pricing started to escalate and nobody was traveling. The relationship side of the business really struggled, and everything just became a transaction and a number,” he said.
Pedersen is among the many within ROFDA who would like to see a renewed emphasis on traditional business relationships returning.
“I think that history has proven how the importance of building relationships, building bridges and having good communication must be a priority to achieve success in
business,” he said. “There are companies that get that, and there are companies that are struggling with that.”
If more companies connected on a personal level with their business partners, everyone would benefit, according to Pedersen.
“As people stopped traveling, travel budgets to see wholesalers, vendors and retailers got cut, as did conferences and the in-person meetings,” he said. “When you try to get business back, it stands to reason that travel, sponsorships, new programs and communication are all part of that.
“If you don’t get back on that bus and start driving quickly, then sales start to struggle. That is what we are seeing now.”
The result, he added, is that consumers are trading down, promotions aren’t what they used to be, prices are high – all of which impact what’s happening in the grocery store.
“Our belief is that through good relationships and good communication we can get better at what we’re doing,” Pedersen said. “So the ask from the CPGs is, can we get back to basics? Can we get back to communicating better with each other, coming to conferences and doing some eyeball-toeyeball meetings and helping each other understand what the goal looks like? How can we get there together, and then work on what that future looks like?”
One of the unique opportunities at ROFDA is the face-toface CEO meetings, offered as a group, as well as one to one.
“If you are a CPG company, you can sit in front of all eight wholesalers, representing $35 billion in retail sales and 7,000 grocery stores across the United States. You can sit in front of decision-makers, those CEOs, and explain what’s going on with your company, what you’re trying to do to move the needle, and how you can work together to accomplish that. That’s a pretty powerful audience to have sitting right in front of you,” Pedersen said.
He went on to note that CPGs coming to a ROFDA conference have the opportunity to take those initial meetings. After that, they can drill into specific discussions with the wholesalers.
“That’s one of my scream-from-the-top-of-the-hill moments,” Pedersen said. “I want the CPGs to understand what the audience they have before them represents in the independent space, and how they can have access to this group all in one place through the ROFDA conference.”
Ray Sprinkle, president and CEO of URM Stores Inc. and a member of ROFDA’s board of directors, echoed that point, noting that it’s important to ensure CPG suppliers see value in the organization.
“We want to remind them that when they attend one of our conferences, they have access to all the ROFDA warehouses and representatives that are there, as well as their individual retailers who are attending,” he said.
Ray Sprinkle
Jeff Pedersen
ROFDA Retail Media Network represents unparalleled level of cooperation
by Carol Radice / senior content creator
Retailer Owned Food Distributors and Associates (ROFDA) wholesalers, along with multiple third-party providers, have teamed up to provide a comprehensive suite of retail media network solutions tailored to members’ needs. This includes targeted advertising opportunities, data-driven insights for campaign optimization and integrated e-commerce and fulfillment with collaborative partnerships that enhance brand visibility.
“As a coalition of wholesale food distributors cooperatively owned by independent retail grocer members, ROFDA represents nearly 7,000 member stores across North America,” said Nick Nickitas, general manager of local independent grocery at Instacart, a ROFDA partner on the project. “ROFDA’s unique advantage is in its deep understanding of the diverse independent supermarket landscape, allowing for customized strategies that resonate with local communities and drive tangible results for brands and retailers.
“The benefit to brands and advertisers is that it provides a way to target and engage local grocers and the communities they serve. Easy and scalable access to this group of independent grocers is something that our CPG partners have expressed interest in targeting for some time now.”
Expanding on this, Eran Harel, SVP of corporate development and strategic partnerships for AppCard, also a ROFDA partner, noted that ROFDA’s leaders were quick to understand that each warehouse and retailer may be using different providers for an array of functions.
“Accordingly, it is trying to pull various parties – often competing entities – to collaborate with one another, from e-commerce vendors to digital coupons providers, from loyalty and rewards to mobile app developers,” he said.
As Nickitas noted, ROFDA sets itself apart by fostering strategic relationships between brands and independent grocers. By prioritizing personalized, communitycentric advertising solutions, ROFDA creates a distinct value proposition that resonates with local consumers and strengthens brand affinity.
“ROFDA’s program emphasizes collaborative opportunities that promote mutual growth and success, fostering an environment where brands and retailers can thrive together,” he said. “We’re seeing an unparalleled level of collaboration and cooperation across wholesalers and retailers that is enhancing outcomes for brands and customers in the communities they serve.
“ROFDA’s collaborations with key industry players in the retail media space are strategically designed to bring added value to its member retailers. By forging partnerships with technology providers like Instacart’s Carrot Ads, Givex’s Enterprise Coupon Portal and more, ROFDA enhances its members’ access to innovative tools, insights and resources that optimize advertising strategies and drive business growth.”
These partnerships, he added, empower ROFDA members with inventive solutions, industry best practices and competitive advantages that will enable them to stay ahead in a rapidly evolving retail environment.
Harel called ROFDA’s approach “a great step in the right
direction.” Among other things, it ensures warehouses collaborate and offers an opportunity for grocers to benefit from ROFDA’s size.
“It allows them to amplify the already great work that each warehouse is doing for their own members by offering a true economy of scale,” he said. “The success of the ROFDA initiative will rise and fall, as all participating warehouses align their already existing initiatives with the greater cause of ROFDA, and so will the various third-party providers.
“It is great to see how many have aligned with this important initiative to ensure independent grocers come out of this stronger and continue to serve as the center of their respective communities.”
Jeff Pedersen, president and CEO of ROFDA, echoed those sentiments and noted that the goal in launching the RMN was to give grocers the tools, technology and talent they need to engage customers efficiently and succeed in an ever-changing industry.
“To date, this is one of the largest examples of cooperation and collaboration across the independent grocery industry,” he said.
Randy Arceneaux, president and CEO of Affiliated Foods Inc. and a member of ROFDA’s board of directors, agreed that retail media is the future of how vendor and retailers will be going to market.
“It’s the space that once was occupied by print media and is now taken much further than just a digital ad on a website and hand-held phone,” he said.
The level of detail afforded vendors is unprecedented, according to Arceneaux.
“The ability to give specific shopper information back to the vendor, allowing them to make marketing decisions to drive
Understanding RMNs and their ability to enable brands to reach audiences
by Carol Radice / senior content creator
Among the initiatives presented to the grocery industry over the last several years, retail media networks are shaping up to be one that could make the most difference for all involved – grocers, shoppers, wholesalers and CPGs.
In discussing the role of RMNs, Nick Nickitas, general manager for local independent grocery at Instacart, said they play a critical role in today’s business environment by providing a platform for brands to engage with consumers at key touchpoints throughout their shopping journey.
These networks, he noted, offer brands the opportunity to target and personalize advertising, promotions and content directly to customers in a way never before possible.
“This approach drives product discovery, increases sales and enhances shopper loyalty,” Nickitas said. “By leveraging shopper data and insights, retail media networks enable brands to reach their audience effectively.
“They also allow brands to measure campaign performance and optimize strategies in real time by providing accurate and timely closed-loop measurement. This enhances the overall shopping experience for consumers while providing valuable marketing opportunities for brands and retailers alike.”
Eran Harel, SVP of corporate development and strategic partnerships for AppCard, said several factors came together to open the door for retail media networks.
“Starting with COVID, which forced stores to accelerate adoption of e-commerce, and continuing with the elimination of print ads and increase of digital circulars, to the importance of shopper communications, shopper engagement and the rise of digital coupons – all of this has opened the doors for the rise of retail media networks,” he said.
Layered on top of this, Harel added, is the recognition from CPGs that trade funds, shopper marketing and digital dollars need to be better spent.
“The success of digital coupons proved to CPGs that the 1 to 3 percent redemption
rate that paper coupons had was no longer acceptable,” he said. “They see a significantly higher return on investment with digital coupons.”
Gaining a better understanding of the data has also come into play.
“Having access to first-party data and the ability to truly meet shoppers at their preferred touchpoint – whether it is in store, online or offsite – was a game-changer,” Harel said. “The first to understand, react and realize the potential of these touchpoints were Amazon, Walmart and Kroger. Combined, they have proven that meaningful revenue can be generated.”
However, unlike national companies, independents are not typically unified in their platforms, data sets, shopper touchpoints, technology providers or any other aspect, which he said hinders the ability to create an impactful network. In addition, for meaningful retail media to be successful, it is essential to have a true network of stores.
“Similarly to IGA’s CEO John Ross, at AppCard we believe that the ‘magic number’ of independent stores should be around 5,000-6,000 for the independent grocers to truly make a difference and ensure grocers are exposed to meaningful budgets and revenue share through retail media initiatives,” Harel said.
Instacart also is partnering with ROFDA on its retail media initiative via Carrot Ads. According to Nickitas, Carrot Ads help retailers and wholesalers establish and grow their retail media networks on their owned and operated websites and apps.
“With Carrot Ads, wholesalers and their retailers gain direct access to Instacart Ads’ grocery advertising team, offering tools to monetize their websites and providing valuable data and insights to grow their business and strengthen customer relationships,” he said.
Nickitas added that as shopper marketing budgets have grown, a significant amount of that funding has been directed toward larger retailers.
“Independent retailers want to participate but have not had the tools or scale to do so until now,” he said.
Eran Harel
Nick Nickitas
sales of their brands, opens a new level of information,” he said. “Among other things, the retailers and wholesalers that figure this is out will benefit from additional funding available.
“The ROFDA program allows us the volume that we on our own typically cannot offer to the vendor. Collectively coming together gives us the negotiating opportunities with the vendor community to offer scale.”
Arceneaux added that the difference with ROFDA’s program is approaching it as one entity. “We are teaming up with the experts in the field and utilizing the experience they offer to mesh together one program to approach the vendor community.”
Ray Sprinkle, president and CEO of URM Stores Inc. and a fellow ROFDA board member, said the RMN’s launch is another effort the group has made to offer members value.
“We have strength in numbers. At the same time, we want to make it easy for all companies to do business with ROFDA,” he said. “We feel that this will enhance the CPGs’ ability to reach many independents at one time.”
Dan Funk, president and CEO of Associated Wholesale Grocers and a ROFDA board member, pointed out that providing scale on the digital coupon side of the business with streamlining how to reach the ROFDA members through a single program and portal interface is a competitive advantage AWG and other ROFDA members look forward to having.
“Allowing each of us to increase our scale and return on investment for vendor partners with fewer administrative costs is groundbreaking for all of us,” he said.
On the retail media side, Funk said the partnership with Instacart is another example of bringing together the scale of ROFDA’s participating members to an immediate scalable solution with a leader in the space.
“What is different about both is that we are creating a national footprint for vendor partners to participate with a unique focus on driving independent retailer success through the programs,” he said.
Givex Inc.’s coupon portal to boost wholesale partners, CPG companies
Retailer Owned Food Distributors and Associates (ROFDA) has begun a partnership with Givex Inc. to use its Enterprise Coupon Portal for new coupon and deal management, with the goal of enhancing shoppers’ savings and increasing loyalty and brand awareness.
Formed in 1962 to enhance the success of independent retail grocers, ROFDA is a cooperative representing more than 7,000 independent retailer locations.
Givex’s ECP platform, acting as a central hub, will allow ROFDA wholesalers and authorized CPG companies and other suppliers to create and distribute consumer grocery promotions to most retailers with partnered POS and loyalty programs.
The solution also provides ROFDA wholesalers with an easier way to distribute promotions to consumers while providing automated reporting with real-time coupon-clip-counts and redemption settling.
“Our partnership with ROFDA marks an exciting milestone in our mission to continue to revolutionize the way food distributors and wholesalers, and their CPG partners, create and distribute digital coupons, cashback rebates and other offers,” said Bill Gray, president of Loyalty Lane.
“Our one-to-many ECP is key to connecting powerful transactional promotions between CPGs, wholesalers, retailers and shoppers.”
ROFDA’s
RMN program at a glance
Michael Violette, president and CEO of Associated Grocers of New England and chair of ROFDA’s board of directors, said the organization’s RMN program is built by “aggregating the resources of our member wholesalers and trusted vendor partners, creating a unified platform reaching over 25 million customers nationwide.”
He continued, “This initiative is pivotal because it equips independent retailers with the same digital advertising power and reach as larger grocery chains. In today’s retail landscape, digital marketing is critical for driving customer engagement, promoting brands and boosting sales.
“However, individual independent grocers often lack the scale or resources to attract attention from national media buyers. By uniting the media buying potential of thousands of independent retailers, the ROFDA Retail Media Network creates a powerful, single-point access that is attractive to digital advertisers.”
Let’s take a closer look:
What it offers
◾ Unified platform for digital advertising: ROFDA brings together thousands of independent retailers under one network, making it easier for national media buyers to execute large-scale advertising campaigns across a vast network of stores. Instead of negotiating with individual retailers, advertisers can make one buy that gets distributed across the entire membership, increasing efficiency and reach.
◾ Access to national-level campaigns: Independent retailers often lack the leverage to attract large national advertising campaigns, but through the ROFDA Retail Media Network, they can participate in programs usually reserved for larger chains. This opens new revenue streams and creates a competitive advantage in attracting brands that might otherwise overlook them.
◾ Localized execution with centralized structure: While the network leverages ROFDA’s aggregate scope, individual retailers maintain flexibility in how campaigns are executed locally, ensuring that advertising remains relevant to their customer bases.
Advantages and benefits
◾ Scale and reach: The collective power of the ROFDA Retail Media Network gives independent grocers access to a much broader array of advertisers and brands. By pooling resources, ROFDA offers a more attractive package to media buyers who are looking for efficiency and scale. This enables members to participate in high-impact campaigns that drive sales and customer engagement.
◾ Revenue opportunities: RMN creates a new revenue stream for participating retailers. By serving as a platform for digital advertising, RMN enables retailers to monetize digital touchpoints in-store and online, from targeted promotions to personalized offers.
◾ Leveling the playing field: Traditionally, large chains have dominated the RMN space, leveraging their size to attract major advertising budgets. ROFDA’s network levels the playing field, allowing independent retailers to collectively compete with these major players by offering the same benefits of scale and targeted advertising.
Jeff Pedersen, president and CEO of ROFDA, said the organization is “passionate about enhancing the success of independent retail grocers.
“Introducing Givex’s ECP is exactly the type of tool our members need to continue competing against big-box stores, and we expect strong uptake once fully deployed,” he said.
How it differs from others
◾ Collaborative vs. competitive: ROFDA’s RMN is built on the principles of collaboration among independent grocers. This model ensures that the advantages of the network are shared equitably across all participants, and that local retailers retain control over how campaigns are executed in their stores.
◾ Focus on independents: Independent retailers remain at the forefront of innovation, driven by the entrepreneurial spirit of individual owners. ROFDA’s program is designed specifically with them in mind, ensuring their voices are heard in an area they may not otherwise have access to alone.
This centralized hub facilitates a connection between trade partners and independent retailers, which is especially important given the unique role these grocers play in food trends and new product development. In turn, CPG companies apply these garnered insights for a more comprehensive understanding of consumer behaviors.