Revenue Growth Management (RGM)
Revenue Growth Management (RGM) is a systematic, data-driven strategy used by beverage companies to optimize pricing, packaging, and product mix to maximize profitable growth.
Role in Premiumization
In the context of a multi-beverage-strategy, RGM is the mechanical tool used to execute premiumization. It relies heavily on Price-Pack Architecture (PPA)—the strategic use of pricing ladders within a portfolio. By offering a tiered range of products (e.g., standard, imported, craft, and functional zero-alcohol alternatives), brands systematically encourage consumers to trade up to higher-margin items.
Winning in the No-and-Low-Alcohol (NOLO) space requires brands to use RGM to balance market penetration (driving volume) with premiumization (maximizing the absolute margin per transaction).