FMCG Glossary

What is RGM?

Revenue Growth Management

Definition

Revenue Growth Management (RGM) is the commercial strategy of maximising net revenue and profit through pricing, mix, promotion, and channel optimisation rather than purely volume growth. RGM seeks profitable growth by ensuring the right products are sold at the right price, in the right channel, to the right consumer.

Examples of RGM in FMCG

  • Premiumising a product range to improve average selling price and gross margin
  • Reducing promotional frequency from 20 to 12 weeks per year while improving depth
  • Introducing a small convenience pack at a higher price per litre to capture impulse shoppers
  • Shifting channel mix from wholesale to direct-to-retail to improve net revenue per case

RGM in the FMCG Industry

RGM became a priority in FMCG post-2020 as inflation drove cost increases that couldn't be fully passed through price. Businesses with mature RGM capabilities (Heineken, Diageo, AB InBev, Coca-Cola) significantly outperformed in the inflationary period by managing mix and pricing more strategically than volume-focused competitors.

Why RGM Matters for Your FMCG Career

RGM Manager and RGM Director roles are among the fastest-growing in FMCG. They typically require strong financial modelling, pricing analytics, and commercial strategy skills. RGM experience is particularly valued by PE-backed businesses and mid-market FMCG companies building their commercial maturity.

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