Supply Chain Disruptions and Retail Merchandising: A CPG Survival Guide
Canadian CPG brands entered 2025 already under pressure—and global supply chain disruptions are only adding fuel to the fire.
Delayed shipments, ingredient shortages, rising freight costs, and unpredictable retailer demands aren’t just operational headaches. They directly impact how brands appear on the shelf—or whether they appear at all.
Here’s how leading CPG companies adapt their retail merchandising strategies to survive and thrive despite supply chain chaos.
- Prioritize Core SKUs
When supply is unpredictable, brands are narrowing their focus:
- Concentrating production and distribution around their best-selling, highest-margin SKUs.
- Pausing less critical seasonal or experimental products.
- Ensuring core SKUs maintain consistent shelf presence to protect brand equity.
Retailers value reliability. Being “in stock with essentials” is now a competitive advantage.
- Communicate Proactively with Retailers
Radio silence is deadly. Leading brands are:
- Alerting retailers early when potential disruptions may occur.
- Offering substitution options proactively.
- Collaborating on contingency plans rather than waiting for shelf gaps to become crises.
Retailers remember who helped—and who disappeared—during tough times.
- Rethink Merchandising Plans Seasonally
Many CPG brands historically plan to merchandise 6-12 months out. Today, agility wins:
- Brands are refreshing shelf strategies quarterly or even monthly.
- Flexible promotional windows allow for real-time inventory realities.
- Smaller, tactical activations are preferred over massive “bet everything” seasonal programs.
- Provisions should be made to support merchandising where a national in-house team doesn’t exist or is limited.
- Use Data to Predict Demand Spikes
Brands leaning into real-time POS and shelf data are better positioned to:
- Anticipate regional spikes (e.g., heatwaves = iced coffee surge).
- Move inventory toward high-demand zones.
- Avoid disappointing loyal customers in key markets.
Static planning is being replaced by dynamic, responsive, supply-driven merchandising.
- Strengthen Field Execution
In unpredictable times, your field team becomes your brand’s last line of defence:
- Strong merchandising reps can quickly reset shelves if products arrive late.
- They can swap in secondary products when primaries are delayed.
- They become crucial partners in ensuring shelf presence stays intact even when plans change.
Brands investing in their front-line teams are recovering faster and more consistently.
Real-World Example: Fresh Adaptation Pays Off
In 2024, Coca-Cola Canada faced raw material shortages that affected aluminum can production, affecting the availability of key beverage SKUs during summer promotional periods.
Rather than withdrawing from planned retail promotions, Coca-Cola adapted by:
- Prioritizing high-demand SKUs (Coca-Cola Classic, Diet Coke, Coca-Cola Zero Sugar) for production.
- Collaborating with retailers to rework in-store displays and promotional materials around available products.
- Launching targeted social media campaigns to drive consumer excitement for the available core products.
As a result, despite a constrained product mix, Coca-Cola Canada maintained strong promotional performance and minimized sales loss.
Their ability to adapt quickly and communicate proactively with retailers and consumers preserved over 90% of their anticipated summer promotional sales volume.
Source: Coca-Cola Canada Supply Chain Response – Beverage Industry Report 2024
Supply chain issues are the new normal. Brands that embrace agility, prioritize communication, and empower field teams will survive and build deeper retailer trust and consumer loyalty.
Because in 2025, shelf success isn’t just about having the best product—it’s about being the most adaptable.
For more information about improving your brand’s success on the shelf, visit www.marketsupport.ca.
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