Europe’s retail sector is rapidly transforming as international joint buying platforms take center stage. Driven by the rise of pan-European discount and value formats, as well as integrated, multi-country digital operators, many of Europe’s biggest retailers are teaming up by pooling buying power across countries to secure better prices and/or extra rebates from manufacturers. Once a niche concept, platforms like Eurelec — which brings together Rewe, Leclerc, and Ahold Delhaize — and Everest are delivering real results and reshaping procurement at speed. They align supplier negotiations and leverage advanced tools to match products across borders, cutting stock keeping unit (SKU)-level buying terms as they compete with the rapidly growing scale of discounters like Lidl and Aldi.
The stakes are high: Staying out means higher costs, weaker pricing, and diminished competitiveness. As a result, more platforms will emerge, with more retailers stepping up. Meanwhile, digital platforms make it easier for consumers to compare prices and shop across borders.
FMCG brands are at a crossroads
This new go-to-market reality leaves fast-moving consumer goods (FMCG) brands at a crossroads. Some categories are facing more than a 25% profit squeeze, while the whole branded CPG sector risks exposure of more than €30 billion in profits. To keep up, FMCG brands need to find ways to manage these new pricing pressures, safeguard revenue, and stay competitive in an increasingly interconnected market. By rethinking their approach to pricing and cross-border strategy, they can maintain their market position and build resilience in a rapidly changing European landscape.
Three paths for FMCG brands to tackle cross-border challenges
With cross-border pricing pressures rising, FMCG brands have three main options: hold firm on current pricing, adopt a single European price, or find a middle ground. Each approach has its advantages and challenges, and what works best will depend on the brand’s market position, product type, and operations.
Holding firm against market pressures
Some brands might try to “hold the line” and keep their prices varied across countries. This works best for brands with strong consumer loyalty or for products that aren’t easily compared or transported across borders, like perishable goods. But for most brands, resisting harmonized pricing will be a tough path — cross-border price transparency is growing, and it’s hard to keep a firm grip on different price levels when consumers and retailers can easily compare.
Going all-in on harmonized pricing
Another route is to embrace a single, Europe-wide sell-in price corridor . This can help keep pricing clear, fend off retailer pressures, and avoid the risk of consumers shopping around for better deals across borders. But there’s a trade-off: Some markets may need to lower prices, which could mean lower revenue in places where brands have traditionally charged more. Brands considering this path need a solid, multi-year plan to ease into a unified pricing model without damaging profits, potentially tweaking their product and promotional strategies to support the change.
Finding strategic balance across borders
The most flexible approach — now gaining traction with many brands — is to align pricing and strategy across countries without going all-in on harmonized prices. By fine-tuning prices, promotions, and packaging for each market, brands can address local needs and preferences while keeping an eye on overall profitability. This “strategic alignment” approach calls for a coordinated, cross-border model that makes sure product pricing, terms, and promotional strategies align well, even if they’re not identical.
Each of these paths has its place. Choosing the right one can help brands navigate cross-border challenges more effectively and stay competitive in a dynamic European market.
Building an effective cross-border pricing strategy for FMCG brands
To manage pricing across borders, FMCG brands need a strategy that balances consistency with local adaptability. Focusing on product differentiation, pricing strategy, promotional alignment, and distribution management can help brands reduce revenue risks and stay competitive in a cross-border market.
Distinguish product differentiation
Adapting products to each market helps reduce direct price comparisons and maintain healthy margins. This might include country-specific packaging, exclusive product versions, or added local services. By tailoring products to regional tastes, brands can uphold local price points without weakening overall brand value.
Establish a cohesive pricing strategy
Setting clear price corridors — minimum and maximum limits — can control price discrepancies between countries while maintaining competitiveness. Aligning price strategies across Europe should also factor in retailer margin needs and target the right customer segments, ensuring that prices reflect both brand image and consumer expectations.
Coordinate promotional alignment
Having consistent promotional strategies, including a stronger focus on sell-out promotions and coordinated execution across markets, helps to avoid price-driven cross-border shopping and reduce the risk of consumers hopping to different countries for deals.
Optimize distribution and volume management
An efficient distribution plan is key to managing cross-border pricing. By controlling volume allocations and managing inventory flows, brands can prevent excess stock from being rerouted to lower-priced areas. This approach is especially helpful for high-demand products, ensuring that they reach the right consumers at the intended price.
Together , these elements build a framework that allows FMCG brands to manage cross-border challenges while preserving profitability and brand integrity. Enablers such as clear governance, advanced tools like artificial intelligence (AI)-driven SKU matching, and consistent monitoring are crucial for ensuring the success of these strategies.
Adapt operating model changes
Intensifying cross-border alignment implies amendments to the operating model of most brands. Business units and markets need to make yet another step toward alignment on product architecture, pricing, and promotional approaches, as well as toward managing the overall financial implications. The balance between market-driven entrepreneurship and coordination across different markets needs to be adjusted, but this should not compromise the inherent benefits and strengths of having some decentralized responsibilities.
Preparing for the future of cross-border FMCG
As cross-border pricing pressures grow, FMCG brands that are taking action now will be in the best position to thrive. Building an effective cross-border and cross-retailer commercial strategy and approach requires thoughtful planning, smart use of data, and a solid understanding of regional markets. When brands align their pricing, promotions, and distribution across borders, they protect their profits and strengthen their presence across Europe.
The key to success is seeing cross-border optimization as an opportunity rather than a challenge. By focusing on what consumers want, refining pricing, and tailoring operations to each market, FMCG brands can adapt to Europe’s increasingly connected market. Taking these steps will not only support growth now but also build a strong foundation for the future.