Some wholesalers are considering scrapping PMPs for plain packs following concerns suppliers are taking margin away from the format.
Several members of Unitas Wholesale have begun exploring plain packs in favour of PMPs, according to the buying group’s managing director, John Kinney.
Kinney told our sister title Retail Express: “Are PMPs still beneficial for retailers under mounting cost pressures? With businesses grappling to remain viable amid soaring costs, such as National Insurance contributions and the National Living Wage, these pressures are no longer short-term issues, but permanent increases to base operating costs for retailers.
Read more: Unitas reports operational loss
“Many retailers are already pivoting towards straight packs, but this shift presents challenges. Wholesalers cannot stock both pack variants for every line, and there may not be an appropriately sized alternative product in the right case size.
“If margin issues remain unresolved, it may spell the end of support for PMPs by many retailers for their brand. For brand owners who value the independent retail channel as a profitable route to market, urgent action is needed.”
Parfetts confirmed to it would not abandon PMPs. Parfetts joint managing director Guy Swindell said: “PMPs drive footfall in convenience. It’ll be a long road back to plain packs, which can reduce the rate of sale, so we’re still big supporters of PMPs.”
