Consolidated retailers have compressed margins and extended payment terms. Brands navigate annual JBP cycles, trade spend complexity, and the constant threat of private label displacement.
The negotiating dynamic in consumer goods has inverted over two decades. Category managers now walk into retailer meetings knowing the retailer has consolidated data on their performance, can produce private label alternatives in months, and faces investor pressure to improve margins. The annual joint business planning cycle should be collaborative. Instead, it is a recurring asymmetry where retailers extract concessions on trade spend, promotional support, and logistics costs while holding the threat of shelf delisting.
The supply chain compounds the challenge. A single SKU might move through three-tier distribution networks, requiring alignment with distributors, wholesalers, and retailers simultaneously. Trade spend accountability is opaque — promotional budgets get reallocated mid-year under claims that are difficult to verify. Cross-border complexity adds another layer: price harmonization across markets creates tension between local subsidiaries and regional management, while currency fluctuations make cost transparency nearly impossible. The negotiation becomes about managing expectations across parties who have incomplete information and conflicting incentives to disclose what they know.
We work with commercial teams to structure negotiations that protect value and change outcomes.