Edition #11

Tariffs impact UK groceries, and persona development's vital role in brand strategy.

This week, we're examining the impact of tariffs on the UK grocery market, questioning if passing costs to consumers is the only solution. Plus, we'll explore why persona development is crucial for brand strategy, and why many brands still overlook its importance.

Happy reading!

#1 Tariffs & the UK Grocery Market: Can Supermarkets and Brands Do More Than Just Pass on the Cost?

Tariffs rarely make headlines beyond the finance pages, but their impact is felt every day at the shelf.

Whether it's post-Brexit trade friction, retaliatory tariffs, or supply chain disruption, the cost of importing goods into the UK has increased - and so far, the most common solution from retailers and brands has been to pass those costs directly onto consumers.

But is that sustainable? More importantly - is it the only way?

How Tariffs Are Hitting the UK Grocery Sector

From fresh produce to packaged goods, the cost of bringing products into the UK has risen due to:

  • Post-Brexit import fees and customs checks

  • Retaliatory tariffs from trading partners (especially on US-imported goods)

  • Increased shipping and compliance costs from new documentation requirements

  • Weaker pound sterling, further inflating the cost of imports

Supermarkets, operating on razor-thin margins, have a choice:

  1. Absorb the cost (hurting their margins)

  2. Pass it onto suppliers

  3. Pass it onto consumers

Unsurprisingly, many have chosen the latter.

What We’re Seeing on Shelves

  • US brands like sauces, snacks, and cereals have quietly crept up in price

  • Seasonal items sourced globally (e.g. berries, wine, nuts) are fluctuating more than ever

  • Own-label goods, once the safe haven, are also seeing increases due to global sourcing exposure

And consumers? They’re noticing. And trading down.

But Here’s the Real Question: Can Retailers and Brands Do More Than Just Shift the Burden?

The answer is yes — but it requires strategy, not reaction.

Here are a few smarter moves supermarkets and CPG brands can take to navigate tariffs more creatively:

1. Diversify Production and Sourcing Locations

Brands like Lindt are already shifting production for Canadian exports from the US to Europe to sidestep North American trade tensions.

UK brands could look at:

  • Sourcing ingredients locally where possible

  • Partnering with alternative supply markets outside the most affected tariff zones

  • Co-manufacturing within tariff-free regions

This won’t eliminate all cost increases - but it offers a path to reduce exposure and regain control.

2. Invest in Smarter Pack Size & Format Strategies

Rather than raising the price of a standard SKU, consider:

  • Slightly smaller pack sizes with price held

  • New formats (multi-packs, bundle deals) that maintain perceived value

  • Premium versions that trade consumers up with better margin protection

Tariffs are hitting the base cost - but value perception is a lever brands can still pull.

3. Strengthen Joint Business Planning Between Retailers & Brands

Instead of suppliers absorbing all the pain or retailers blaming brands for price hikes, both sides should:

  • Work together on category growth strategies

  • Explore exclusive SKUs that offer margin headroom

  • Look at longer-term contracts with better forecasting to stabilise planning

Passing cost straight down the chain creates tension. Collaborative planning creates shared upside.

4. Lean on Loyalty & Data to Offset Price Perception

Tesco Clubcard Prices and Sainsbury’s Nectar pricing strategies show that dynamic loyalty pricing can help soften the blow of inflation.

Could tariffs be absorbed into more targeted pricing mechanics? For example:

  • Offer discounts to loyalty members only

  • Use data to pinpoint elasticity and selectively absorb margin where it matters

  • Tie pricing to value-added services like subscription bundles or delivery perks

5. Educate the Shopper - Without Scaring Them

Transparency around tariffs is tricky, but the more brands contextualise price shifts, the more they retain trust.

A line on pack or shelf like:

“Imported costs have changed but we’ve worked hard to keep this under £3”
…can go a long way toward retaining brand loyalty in a volatile pricing climate.

Final Thought: Tariffs Are the Pressure Test—Now It’s Time for Smarter Playbooks

We can’t wish tariffs away.
But we can choose how we respond.

Simply hiking prices and hoping shoppers accept it is a short-term play.
Retailers and brands who think strategically, collaboratively, and creatively will come out stronger.

This isn’t just about margins.
It’s about market share, shopper trust, and long-term relevance.

The tariffs are here. How you navigate them could define your brand for years to come.

#2 Personas: The Bedrock of Brand Planning Most Brands Still Overlook

It’s amazing how many brands still build strategies based on assumptions, not actual audience understanding.

They’ll map out media plans, product launches, and digital campaigns—without ever answering the most basic question:
“Who are we really trying to reach… and why would they care?”

This is where persona development isn’t just helpful, it’s foundational.

Personas: More Than Just Demographics

Too often, “persona” work gets reduced to clichés:

“Meet Millennial Mary. She loves oat lattes and scrolling Instagram before her morning yoga.”

Not helpful.

True personas dig deeper. They help you understand:

  • Pain points your customer is trying to solve

  • Their routines, behaviours, and consumption moments

  • What influences their decision-making (price? value? peer approval?)

  • Where your product fits into their life - not just their basket

If you don’t know this stuff, your brand is just guessing.

Why It Matters for Every Stage of Brand Planning

Whether you’re a challenger brand looking to scale or an established player refreshing your strategy, personas shape everything:

  • Product innovation → Are you solving a real need or adding to noise?

  • Messaging → Are you leading with a benefit that matters to them, not you?

  • Retail strategy → Are you showing up where your audience shops with intent?

  • Price positioning → Does your pricing match their willingness to pay, or will it push them elsewhere?

  • Media & channel strategy → Are you spending in places they actually engage?

Without personas, you’re building from the top down.
With them, you’re building from the ground up.

Need Help Building Better Personas? Use PersonaForge

Most brands skip the persona step because they think it’s:
❌ Too complex
❌ Too expensive
❌ Too “fluffy”

Enter PersonaForge.

A free tool (for now) that helps you build out robust, insight-driven personas tailored to your category and product.

What you’ll get:

  • Detailed demographic & psychographic profiles

  • Daily routines, digital habits, and category-specific behaviours

  • Pain points and emotional drivers

  • Purchase triggers and price sensitivity

  • Strategic opportunities to engage, convert, and retain

It’s fast, it's focused, and it’s not made-up marketing fluff.

Final Word

The brands that grow fastest don’t just push harder.
They understand who they’re building for and they design everything around that.

If you don’t know your personas inside out, your brand strategy isn’t built on bedrock.
It’s built on sand.

Need help? Try PersonaForge while it’s still free.
And build your next plan on insight—not instinct.

Free Tools to Help your Brand

Digital Shelf - ShelfBoost: Optimise Your Product Listings with Ease

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Perfect for eCommerce sellers who want to stand out in crowded marketplaces and turn casual browsers into loyal customers.

Audience Builder - PersonaForge: Build Your Ideal Customer Profile Instantly

PersonaForge is your AI-powered tool for crafting detailed customer personas tailored to your brand, industry, and market. By simply inputting a few key details, PersonaForge delivers rich insights that can shape your marketing strategies, product development, and overall brand direction.

Benefits of PersonaForge:

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  • Cross-Industry Use: Works for brands across all sectors, from startups to established businesses.

  • Save Resources: No need for expensive focus groups or time-consuming market research—PersonaForge delivers insights instantly.

With PersonaForge, you can transform vague assumptions into sharp, strategic actions that drive results.

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