When the winds of global trade blow, it’s often the least shielded that feel the chill first. UK food and drink producers have spent the past few years contending with rising inflation and increased costs, creating pressure across the industry.
And with Trump’s tariffs resembling something of a cyclone, even with a 90-day postponement to most countries’ tariffs, organisations small and large are now facing tighter margins and uncertainty clouds the horizon.
There’s one quality that can help brands not only survive but grow: pricing power.
Tariffs and tougher times
In March, grocery price inflation in the UK rose slightly to 3.5% and take-home sales grew by just 1.8%, the slowest rate since June last year. One month later, the US announced a 10% tariff on British goods, a move that hit home for a sector that exported over £1.6 billion to American shelves last year.
From Scottish shortbread to English cheddar, beloved storefront staples may soon become more expensive to get across the Atlantic. For Welsh whisky maker Penderyn, where US sales account for 10% of revenue, that income hangs in the balance.
And it’s not alone.
As external pressures mount, the strength of your brand becomes your greatest asset. You can’t negotiate with geopolitics. But you can decide how your brand maintains relationships with consumers when the pressure rises.
Pricing power: your brand’s hidden armour
Let’s be honest, nobody loves price increases; but sometimes, survival and competitiveness demand it.
The real question isn’t just whether customers are willing to absorb price hikes, it’s why they would. Consumers may also question their usual purchase decisions, making it even more critical for brands to stand out.
When customers will accept higher prices, we call that ‘pricing power’. And pricing power does not happen by chance. It stems from what we at Kantar refer to as ‘meaningful difference’ i.e., the emotional and functional distinctiveness that sets your brand apart.
A brand’s meaningful difference accounts for 94% of its pricing power. That means that a brand’s ability to charge more without losing customers comes from how well they connect and stand out in the minds of buyers.
And for every single point of pricing power a brand gains, they can justify a four-point increase in price without sending customers fleeing.
Marketing is much more than a numbers game
Good marketing isn’t just clever slogans and shiny packaging though. It’s storytelling with the kind of substance that justifies why your product is worth more.
Like Jeremy Bullmore and Stephen King explained in the 1980s, “Most knives cut.” However, some are sold in luxury boutiques for hundreds of pounds; customers walk out happy, feeling like they’ve made a good decision. Others are found in the aisle of your local supermarket, often deemed the cheap option.
That’s pricing power at work. It is not deception, it’s differentiation.
This isn’t about fooling people. It’s about making them feel the value. The warm familiarity of a family-brand biscuit. The heritage of a single-malt scotch. The sustainable story behind a premium gin. These are the kinds of stories that make higher prices feel not like a burden but more like a choice.
Take for instance Oreo. The beloved cookie brand has built its legacy on playful, nostalgic storytelling and consistent brand identity. Whether it’s through the ritual of twisting, licking and dunking, or through bold, culturally relevant campaigns – like rainbow-colored fillings for Pride or playful banter on social media – Oreo continually reinforces its brand in ways that feel fresh yet familiar. That emotional bond makes Oreo stand out, even in a crowded snack aisle, and helps justify why people are happy to pay a little more for it. By experimenting with limited editions and tapping into global trends, Oreo stays relevant while remaining one of the world’s most valuable food brands.
Moreover, brands are exploring innovative ways to better understand how their story resonates with customers. For example, in the face of tariffs we’ve started working with brands in Canada to measure how authentically Canadian they are, as perceived by consumers, given how important it’s become for people to choose local. It goes without saying that consumer perception is just crucial as the numbers on a spreadsheet.
Marketing and finance – a beautiful (and necessary) friendship
We like to say: train your customers to wait for a deal, and they always will.
The temptation to discount during tough times is strong especially when tariffs raise costs. But short-term promotions often lead to long-term damage. They dilute brand value and make profitability even harder to claw back.
Instead, brands need to be thinking premium, personalisation and digital. If you’re in marketing, pricing power might feel like a job for finance but in today’s world it’s everyone’s business.
The most resilient companies are those where marketers and finance teams work side-by-side. They plan together. They share dashboards. They speak the same language. When a pricing decision lands, it’s not just a spreadsheet call, it’s grounded in brand equity, customer insight and commercial sense.
Weatherproofing your brand
The brands that succeed long-term are those that charge fairly, communicate openly and keep delivering on their promise. The best example comes from a different sector entirely, but is one we can all remember: customers queuing for Apple’s newest iPhones mid-way through the 2008 crash. Not because the price was low, but because the value felt real.
Potential tariffs, rising inflation and global political uncertainty are not going away anytime soon. If anything, they’ll come in waves. But brands that invest in pricing power are building more than short-term gains. They’re building resilience.
So don’t race to the bottom. Lean into what makes you different. Build bridges between departments. Price with courage and clarity.
In the end, your brand isn’t just a logo on a label. It’s your shield in the storm.