At a glance

The Client
A leading UK drinks supplier.
The Objective
To regain control over investment lost to Net Price agreements and establish a sustainable pricing and trade terms structure.

Challenges

  1. Historic Net Price agreements that led to significant loss of control.
  2. Cumbersome CPI modelling.
  3. Pricing structures in place that were cost-driven rather than value-driven.
  4. Resistance from customers who were accustomed to legacy pricing and terms structures.

Solution

Acumen implemented a structured pricing approach, divided into four key phases: Picture of today, vision design, scale of change modelling and implementation & training. This included designing a new list price, extracting off-invoice rebates, and establishing a consistent framework across all channels.

Client journey

  • Launch of Wave 1a, focusing on top 2 grocery brands
  • Implementation of Wave 1b, covering wholesale and convenience channels
  • Full rollout to remaining brands and bespoke model customers (e.g., Ecommerce, hard discounters and c&c)

Project outcomes

Complete reversal of Net price agreements with top 5 grocers, leading to a 20-30% increase in invoice prices.
£12M spend repatriation and £1.5M in Year 1 savings through quick wins.
Establishment of a sustainable pricing structure that offers better control and visibility.