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 PressuresSeveral key ingredients & commodities on accelerating inflation trend.
Hero SKUs pressured under psychological price points
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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
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
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Developed in-depth category value maps vs competitors
Explored implications of price ladder coverage & white space for pricing upside potential
Established core SKU economics
SKU-level margins & impact on overall top- and bottom- line $.
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ACTION
Developed in-depth category value maps vs competitors
Explored implications of price ladder coverage & white space for pricing upside potential
Established core SKU economics
SKU-level margins & impact on overall top- and bottom- line $.
Modeled Price Elasticity by Category
Waterfall approach based on salient drivers of increase /decrease in price elasticityRefined 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
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Recommended priority opportunities for price-pack & trade investment to win market share vs key competitor
Recommended top ideas for price-pack expansion (sku x channel)
Areas where trade investments could profitably expand market share
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.
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