Policy Blog

European brands face shared challenges: Reflections from AIM’s national associations meeting

The British Brands Group joined fellow national associations in Lisbon on 2 October for the European Brands Association’s (AIM’s) autumn meeting, exchanging insights on the pressures facing brands across Europe and the policy priorities for 2027.

Despite differences between national markets, common themes emerged: rising operating costs, continuing inflationary pressures, energy challenges and the cumulative burden of regulation. Discussions highlighted the importance of policymakers considering how these pressures interact, affecting businesses’ ability to invest, innovate and build resilient supply chains.

Associations also shared work on digitisation, consumers’ use of AI in shopping, and research demonstrating brands’ economic and social contribution. Strong evidence remains essential to effective engagement with policymakers and to explaining how brands support growth, employment and consumer choice.

Fair trading and cross border supply

Unfair trading practices were a central topic, with discussion of the EU framework, its implementation across member states and potential changes to its scope. Participants explored barriers to effective enforcement, including suppliers’ concerns about retaliation. The Portuguese government speaker highlighted “pay on scan” as an emerging risk being seen in the market. Under arrangements where retailers only purchase goods when they are scanned at the checkout, suppliers retain the risk associated with unsold stock, rather than completing the sale when goods are supplied to the retailer. This can transfer inventory risk and financing costs to suppliers, while delaying payment until the products are sold to consumers.

Alongside this, the EU’s work on territorial supply constraints (TSCs) remains a significant issue for brands. The European Commission is considering measures to address restrictions on retailers and wholesalers purchasing goods in one EU country for resale in another. The detail and scope of any measures will be important for understanding their implications for UK businesses selling into EU markets.

BBG is requesting feedback from the Department for Business and Trade (DBT) on how potential EU measures on TSCs could affect our members when selling in EU markets.

Enforcement and collaboration

The meeting also considered collective actions and private enforcement in Portugal, highlighting questions about transparency, accountability and the potential exposure of retailers and suppliers.

For BBG, the discussions reinforced the value of working with AIM and our European counterparts. Sharing evidence and experience strengthens our ability to represent members, anticipate policy developments and promote an environment in which brands can invest and compete.

Members with questions or practical examples relevant to TSCs are encouraged to contact ceo@britishbrandsgroup.org.uk to help inform our engagement on the issue.