With each new announcement, the tariff landscape grows more unpredictable. Food and beverage companies are operating in an environment where long-term planning feels nearly impossible. Sudden changes in trade policy and the threat of additional tariffs are forcing constant recalibrations, making stability feel out of reach.
One of our clients summed it up best: “It’s all-consuming.”
What We Are Hearing from the Industry
Across the board, food and beverage leaders are saying the same thing: pricing is a moving target. Forecasting has become a guessing game. Contingency plans have contingency plans—and even those are being reworked as circumstances evolve. These patterns aren’t isolated either. They’re being echoed in conversations across every corner of the industry.
One executive we spoke with—a President at a grower-owned, supply chain management company specializing in fresh produce—shared how previous rounds of tariff threats pushed their team to model significant price increases and explore difficult options like adjusting grower returns. While some of those measures were ultimately set aside, the planning process itself was resource-intensive and high-stakes.
He emphasized the challenge of reacting to trade policy shifts with little to no warning, explaining, “You simply can’t overhaul grower returns or customer pricing strategies with 12 hours’ notice.” His team’s response? Layered contingency efforts that included holding open-market pricing steady, keeping contract pricing untouched, and increasing domestic acreage as a longer-term precaution. Some of these steps resonated strongly with customers—yet even with detailed planning, last-minute announcements often forced them into reaction mode, adjusting strategies in real time to meet customer expectations and shifting trade requirements.
How Tariff Volatility Is Impacting the Industry
- Pricing Strategy – Unpredictable changes in costs are leading to frequent pricing adjustments, both upstream and on the shelf.
- Procurement Disruption – Many ingredients and packaging materials simply can’t be sourced domestically, creating additional complexity. With limited domestic alternatives for staples like cocoa, coffee, and certain packaging materials, the options for re-sourcing are narrow and increasingly expensive. In response, some international suppliers are showing flexibility by renegotiating contracts, adjusting pricing and timelines, and working closely with their U.S. partners to help maintain continuity. These efforts reflect a shared understanding: their U.S. customers still need to meet downstream demand and keep product moving across the value chain.
- Strain on Planning Teams – Finance, procurement, and operations teams are spending more time responding than strategizing.
- Tighter Margins, Higher Prices – For many companies, tariffs aren’t just a line item—they’re a margin killer. Some are absorbing the extra costs, others are passing them to consumers, and most are doing a painful mix of both. With inflation already top of mind, this added pressure is stretching teams thin and making pricing decisions even more sensitive. For consumer-facing brands, that also means walking a fine line: price increases that seem modest internally may be make-or-break at the shelf for shoppers already stretched by inflation.
- Pressure at Every Stage – The ripple effect of tariff uncertainty is being felt across the entire value chain. Farmers, manufacturers, retailers, and consumers alike are all impacted by shifting costs and sourcing challenges.
Why It Matters
This isn’t just a policy issue—it’s a people issue. Behind every pricing shift and supply chain pivot are teams under pressure to deliver stability in a volatile landscape. When resources are stretched thin, it’s not just efficiency that suffers; it’s morale, too.
A Shared Challenge
While no one can predict what’s coming next, the one thing we do know is that no one’s navigating this alone. As one leader shared, there’s no playbook for navigating volatility like this. What worked before doesn’t necessarily work now, and even well-prepared teams are often forced to adjust in real time.
Whether you’re facing uncertainty head-on or just bracing for potential changes, it’s clear the entire industry is being tested. That’s where strategic support comes in, helping teams adapt more effectively and move forward with greater confidence.
How Curtis Food Recruiters Can Support You
In unpredictable times, having the right talent in the right roles can make all the difference. Whether you’re building out your pricing function, seeking temporary leadership support, or simply looking for a trusted resource when the unexpected hits, we’re here to help.
You may not need us today, but if your team finds itself in need of an experienced partner who understands the nuances of food and beverage, we’re ready when you are.