Edit Content

Main Menu

Let's chat.

Have a Revenue Growth Analytics pain point, a question, or a content suggestion?

Consumer: Food CPG – Case Study

Industry: Food CPG - breakfast & snacks
Area: Pricing Power Clarity, Offering Design & List Price Optimization In collaboration with EBITDA Catalyst, Revology's strategic partner for driving value creation for mid-market Private Equity.

SITUATION

Highly successful growth CPG brand – breakfast & snacks

  • Size: $250-500M revenue

  • Geo scope: Americas

  • Premium “good-for-you” category rapidly growing

Concentrated Channel Strategy

  • Primarily big box retail / grocery channel

  • Somewhat horizontally diversified product lineup across multiple food and snack categories

  • Club channel SKUs performing very well

    Inflation & Profitability Pressures

  • Several key ingredients & commodities on accelerating inflation trend.

  • Hero SKUs pressured under psychological price points

Competitive & Share Gain Opportunity

  • The largest competitor in the category was challenged with unprecedented brand perception and dilution challenges

  • Client had a unique potential opportunity, but any path to capitalize seemed risky / different from the status quo

2 9
Screenshot2024 11 17at11.06.01 AM

OBSTACLES

Cost and Competitive Pressures

  • Specific cost hits from ingredient & commodity inflation, AND capitalizing on a key competitor’s challenges.

  • Persuading retailers to partner in RGM actions.

Profitability:

Strong revenue growth trajectory, challenges converting to EBITDA gains.

Psychological price points presented a daunting ceiling and retailer resistance point.


Pricing & Growth Path:

Lack of reliable price elasticity estimates. Retailer resistance to price increases. Had already taken an increase in previous years

ACTION

  • Modeled Price Elasticity by Category
    Waterfall approach based on salient drivers of increase /decrease in price elasticity

  • Refined elasticity / price action response frameworks by category / hero SKUs:

    +/- adjustments from category Px sensitivity benchmarks.
    Stress-tested financial model at various key driver assumptions.

    Partnered with client to collect competitive & channel intel

action s
Screenshot2024 11 14064645

RESULTS

FINANCIAL IMPACT & STRATEGIC WINS

  • Implemented price optimization actions across core categories $13–17M / Year profit (VCM) gain.

  • Developed framework to monitor results & iterate.

  • Preparation for Phase 2 follow-up 6 months later.

  • 11% GM$ improvement

  • Key psychological price barriers overcome.

  • Clarity on GTM direction for price pack /share take from key competitor.

    Clearly improved pricing know-how, cohesion, confidence & culture, client “learned to fish.

Developed repeatable financial & organizational win for a beloved growth brand building internal know-how and confidence.

Let's chat.

Have a Revenue Growth Analytics pain point, a question, or a content suggestion?

The Hurt Hub@Davidson
210 Delburg St, Davidson, NC 28036, United States
+1 803-701-9243

Get in Touch

We would love to hear from you.