Consumer Goods & FMCG
Asia-Pacific

First Price Increase in a Deflationary Market

A global alcohol manufacturer landed its first meaningful price increase in a deflationary market, maintaining portfolio integrity with one contained delisting.


the situation

The market had not seen a meaningful price increase in decades. Deflation was not a temporary condition; it was the operating reality for an entire generation of commercial teams. Cultural norms held that the customer is paramount, and pricing conversations historically ended with accommodation. New commercial leadership brought a different mandate: land the increase, protect portfolio integrity, and build a negotiation capability suited to a changing cost environment. The challenge was not that the team lacked skill. The challenge was that the system they operated in had never required this particular skill.

The structural unfamiliarity ran deep. There was no institutional playbook for price increases in this market. Norms around customer relationships made assertive positioning uncomfortable. Concentrated buyer power meant established local competitors gave retailers alternatives; the client was not in a position to dictate terms. Without a shared approach, early conversations risked setting precedents that would constrain later ones.

the approach

A single narrative with clear guardrails was developed — one defensible rationale on price, consistently applied across all accounts. Proposal packaging followed: modest, conditional incentives bundled with the ask, giving conversations more than one dimension and creating space for discussion beyond pure price. Weekly preparation, simulation, and debrief sessions built familiarity with a structured process the market had not previously required. This cadence worked because it normalized the discomfort of assertive positioning through repetition and feedback.

the outcome

The price increase landed across all major channels with no walk-aways from priority customers. One retaliatory delisting occurred — a discount retailer removing a single brand — while the wider portfolio remained untouched. Concessions were limited to pre-approved incentive levers with no erosion of the core price ask. The team executed with structure and confidence in a situation none of them had encountered before.

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