13 Revenue Management Strategies That Drive Real Growth in F&B and CPG
Revenue management strategies have become a critical aspect for food businesses of all sizes.
With rising costs, changing consumer behavior, and growing competition companies need to have a solid revenue management strategy in place to ensure profitability and sustainability.
While U.S. inflation is projected to stay around 3% in 2025, foodservice sector inflation has recently risen to 6%.
This article delves into the current revenue management strategies used in the food, beverage, and hospitality industries, as well as potential future trends to consider.
What is a revenue management strategy?
A revenue management strategy is a set of actions used to optimize pricing, promotion, distribution, and sales planning based on demand, competitor behavior, and cost structure.
It’s how businesses like yours make the most of every dollar, product, and consumer moment—across channels.
While most known in hospitality, revenue management today is a core discipline in food and beverage revenue management, helping modern CPG and retail players master pricing, pack architecture, and channel strategies to protect margins and boost profitability.
Example
All the big brands have revenue management strategies—let’s hear how the experts are doing it.
Kraft Heinz
According to the Kraft Heinz website, revenue management includes several key levers—like pricing strategy, pack-price architecture, product mix, and promotional effectiveness.
The company notes it’s advancing across all of these, with a strong focus on maximizing trade return through digital tools, including its own proprietary system.
Taco Bell
Taco Bell’s revenue management strategy focuses on food innovation, unmatched value, supreme service, digital connections, tech advances, and international expansion to achieve its goals, including doubling profits and increasing average unit volume.
Walmart
Walmart’s revenue management strategies revolve around “Everyday Low Prices” (EDLP), operational efficiency, and leveraging its scale to offer competitive pricing, maintain a strong supply chain, and provide a broad, affordable selection to customers
13 effective revenue management strategies
Here are the most impactful revenue management strategies you can start using now:
1. Optimize pack price architecture
Tailor your pack sizes and pricing to fit the needs of each sales channel.
For instance, small-format stores often perform better with smaller, premium-priced packs that cater to convenience-focused shoppers, while mass retailers typically thrive with larger, value-driven bundles designed for bulk buyers.
Aligning pack sizes with shopper behavior in specific channels can boost profitability and customer satisfaction.
2. Use dynamic pricing
Dynamic pricing adjusts in response to changing demand factors like seasonality, major events, or even weather conditions.
Implementing this strategy can help protect your margins while staying competitive.
For example, hiking prices for certain products during high-demand periods or offering discounts during slower times ensures better revenue optimization.
This tactic is becoming increasingly critical in CPG revenue growth management as companies look to maximize earnings across variable conditions.
3. Tier your assortment
Create a “good/better/best” product structure to cater to a wide range of budgets and consumer preferences.
By introducing tiers, you provide entry-level options for budget-conscious buyers while offering premium products for those looking to trade up.
This strategy not only signals clear value distinctions to customers but also encourages brand loyalty as shoppers move between tiers based on their evolving needs.
4. Predict trends, don’t just follow them
Tastewise’s platform doesn’t just track what’s popular—it analyzes real-time consumer behavior to identify emerging flavor and health trends before they hit the mainstream.
This allows you to stay ahead of the curve, giving your product decisions a competitive edge and ensuring they resonate with evolving consumer preferences.
5. Localize pricing and promotion
What works in New York might flop in Dallas, and the same goes for varying international markets.
Tastewise provides granular, market-specific insights, helping you fine-tune your pricing strategies and promotional efforts.
By adapting to local demand and cultural nuances, you can make smarter revenue management decisions and reduce the risk of missteps.
6. Leverage DTC and eRetail data
Direct-to-consumer (DTC) and eRetail channels are gold mines for real-time feedback.
Use these platforms to test pricing strategies, bundled offerings, and exclusive promotions.
By analyzing fast feedback loops, you can experiment on a smaller scale, gather valuable insights, and confidently scale up successful strategies for broader impact.
7. Identify high-margin heroes
Every product portfolio has a select few items that generate a significant portion of your profit.
These “high-margin heroes” often go unnoticed but hold immense value for the business.
Use detailed sales data and profit analysis to pinpoint these products, then focus on amplifying their success with targeted marketing strategies, optimized shelf placement, and a well-planned promotion budget to maximize ROI.
8. Run offer simulations
Launching a promotion without preparation can be risky and costly. Instead, use predictive tools to simulate the impact of potential offers before they go live.
These tools can analyze variables like pricing, timing, and market conditions to help you fine-tune your strategy.
By testing in advance, you can avoid costly mistakes and ensure that your promotions deliver maximum value.
9. Segment by consumer behavior
Traditional demographics can be helpful, but they don’t tell the full story. To truly connect with your audience, segment customers based on their needs, preferences, and habits.
Behavioral segmentation tools like Tastewise allow you to dive deeper into consumer tendencies, mapping their actual purchasing behaviors to identify untapped growth opportunities.
This approach helps you design more personalized and impactful marketing strategies.
10. Refresh claims and messaging
Leverage real consumer data to pinpoint which health benefits or taste claims resonate most with your audience right now.
Packaging is valuable real estate—ensure every word, design, and claim works hard to capture attention and communicate value.
Clear, impactful messaging can make all the difference in a crowded marketplace.
11. Invest in cross-functional pricing teams
Bring sales, marketing, and finance teams together to align on shared pricing goals and performance metrics.
Collaboration is key—everyone should operate under the same revenue management framework to ensure a unified strategy.
This alignment not only streamlines decision-making but also maximizes your pricing effectiveness across departments.
12. Watch your competition—but not too closely
Keep an eye on your competitors’ price points, promotions, and strategies to understand your position in the market.
Know your price gaps and promo intensity compared to key players, but don’t fall into the trap of copying them blindly.
Every brand is unique—focus on strategies tailored to your margins, brand identity, and long-term goals to stand out.
13. Automate the routine, so your team can focus on growth
Adopt technology solutions that automate repetitive tasks, such as data analysis, generating reports, or surfacing actionable insights.
By reducing the time spent on manual work, your team can focus their energy on high-impact activities like strategic planning, developing growth initiatives, and driving creativity.
Let technology handle the busy work so your team can focus on innovating and scaling.
Why it matters more than ever
Whether you’re managing promotions, pricing tiers, or go-to-market launches, food and beverage revenue management is the foundation for sustainable, scalable growth.
The best revenue management marketing isn’t just about maximizing dollars—it’s about doing so in a way that consumers, retailers, and your internal teams can all support.
And with competition tightening across categories, CPG revenue growth management isn’t optional. It’s the difference between defending share and gaining ground.
So whether you’re in sales, brand, or innovation, it’s time to get serious about revenue management strategies—the smart, scalable kind.
FAQs
What’s the difference between revenue management and pricing?
Pricing is a part of revenue management. Revenue management also includes assortment, distribution, and promotional strategy, all aligned with business goals.
How often should I update my strategy?
Quarterly is typical, but if you’re using real-time tools like Tastewise, you can adjust monthly—or even weekly—to stay competitive.
Can small brands benefit from revenue management?
Absolutely. In fact, with fewer resources, they often have more to gain from a tight, data-driven revenue management approach.