How should producers negotiate with packaging suppliers when facing significant cost increases?

Members face substantial cost increases from glass suppliers (ranging from 9.5% to 20%+), but pricing negotiations require careful handling. **Key suppliers and their increases:** **Saver Glass** reported 9.5%, **Allied** at 20%, and **Bruni** positioning between the two. **Berlin** has also tightened supply (no stock until Feb 2022 in one case), forcing some to find alternatives.

**Recommended tactics:** - **Collective solidarity approach** — Members suggested that individually they are small customers to major glass companies, but combined they represent stronger negotiating power. A coordinated approach to suppliers could soften price increases more effectively than individual negotiation. - **Keep sourcing options open** — Maintain multiple supplier relationships and always have a BATNA (best alternative to negotiated agreement) ready when suppliers apply pressure. - **Don't pass increases directly to consumers** — Members warned that consumers won't accept sizable price rises and will switch to competitor brands in their price point. Retail and on-trade buyers have the same mentality and won't accept rises that affect market fit. - **Beware of cartel concerns** — Members explicitly flagged that sharing pricing discussion or coordinating price increases could constitute cartel behaviour and should be avoided. Cost of goods information and response is acceptable; pricing discussion is "a no go."

**Caveat:** The pressure is real—producers are caught between supplier increases and market resistance to price rises, creating a "bumpy ride." The best defence is keeping sourcing options as open as possible.