Reflecting on conversations we have undertaken with CEOs and HR leaders from FMCG over the last six months, we noticed that there is one area that comes up time and time again: revenue growth management (RGM).
Over time, RGM has evolved from a niche pricing function to a strategic growth engine and has become an essential capability for seeking sustainable and profitable growth. From global bluechips to high-growth disruptors, there is a worldwide scramble for top talent as it becomes a function that is in extremely high demand. But why has it become so sought after and how is it playing out on the FMCG stage?
The global economic landscape in 2025 has been marked by significant uncertainty and policy shifts, which has impacted various sectors including consumer goods. In response, many consumer goods companies have been forced to navigate fluctuating demand, pricing and rising costs, and the combination of high inflation, supply chain disruptions, and pricing power diminishing has meant companies are feeling the pressure and needing to adapt quickly.
“Historically, RGM was synonymous with pricing and promotions, but it has now evolved into a strategic, cross-functional capability”
One way they are doing this is by enhancing their revenue growth management capabilities. Originally introduced in the 1970s and used by the airline industry to optimise ticket pricing and maximise revenue, RGM has emerged as a data-driven and somewhat scientific approach when it comes to unlocking value across pricing, promotions, assortments and trade investment. Early adopters, particularly in Latin America like Coca-Cola and PepsiCo, have demonstrated that robust RGM capabilities will reap rewards when it comes to gross margins. In fact, it now feels like RGM is no longer optional and is, instead, becoming a must for competitive advantage.
Historically, RGM was synonymous with pricing and promotions, but it has now evolved into a strategic, cross-functional capability which is central to value creation through channels, formats and customer strategies. By leveraging data analytics and artificial intelligence, companies are able to gain a more accurate picture into consumer behaviour and market trends which enables them to move from reactive pricing to proactive value creation.
There are continuing conversations around the advantages and disadvantages of where RGM should sit. Through our own conversations with CEOs and HRDs, it has become clear that there are a number of ways that companies can implement RGM into their structures and, it seems that opinions on its effectiveness also vary depending on where it sits in the business. We have seen that, in early stages of implementation, it can be advantageous for RGM to sit within the finance function for data access and control, but as maturity grows, sitting in commercial allows for better alignment with decision-making and execution. In other organisations, such as P&G, it is treated as a capability, not as a separate function, and is embedded into the brand teams. This ensures overall alignment with the business strategy.
However, RGM is not a quick fix. It takes years to go from ‘core’ to ‘expert’ to ‘industry-leading’ and it demands an internal cultural shift to place value at the forefront of decision-making. Any organisation that is looking to undertake an RGM journey needs to challenge itself to determine what it is that is important to achieve. Without value being a priority, executing initiatives becomes difficult. For example, companies with a manufacturing bias and a large global footprint often face challenges and their solution to sales challenges has traditionally been to introduce new products or lines, adding complexity to manufacturing rather than tapping into existing consumer trends. This manufacturing-centric approach can damage value by adding both complexity and cost, especially during commodity crashes.
In order to implement an RGM mentality, there needs to be a shift towards a focus on value. Making this change might involve discontinuing products and lines that do not appeal to consumers which may require significant work and patience. However, some companies embark on the RGM journey without fully understanding what is realistically involved in doing so, or the patience that is needed to deliver results, as this will often necessitate changes to historical practices.
So having the right people to help guide this is crucial, but what does the talent pool look like? As one of the fastest growing capabilities in the FMCG space, those who have depth of expertise in RGM remains somewhat limited. Seeing as the majority of the most significant FMCG players only started their RGM journey five years ago or so, there are only a small number of companies that can say they have over a decade’s worth of RGM learning, and even less that are regarded as best-in-class RGM schools.
“RGM is no longer a back-office function – it is a strategic imperative.”
We have seen a broad mix of high-performing RGM professionals coming from various disciplines such as finance, sales, strategy or marketing. Some of the key talent trends we have seen include a cross-functional fluency in commercial, finance and analytical domains, experience in both modern and traditional trade markets, and an ability to drive change across a wide number of cross-functional stakeholders. We have also seen how RGM can be a career accelerator, with leading RGM experts moving into broader leadership roles.
RGM is at a tipping point with the next frontier focusing on AI and predicative analytics to anticipate consumer behaviour, more integration with marketing and segmentation for precision marketing, and sustainable growth models that go beyond pricing to longer-term value creation.
What is clear, is RGM is no longer a back-office function – it is a strategic imperative. Companies that invest in building world-class RGM capabilities will be better equipped to navigate volatility, outmanoeuvre competitors, and deliver sustainable growth; and in the world we live in today, this is critical.
The challenge now is not whether to adopt RGM, but how fast and how well it can be embedded across the organisation. For us, this is what we love most – taking the challenge to be at the forefront of tapping global talent in an exciting leading-edge function.
