Trade Spend Leakage: Your Top Retailer Is Probably Your Worst Account
Trade spend leakage explains why a brand's biggest account, reranked by net-revenue yield, often falls to the bottom of the list.
Trade spend leakage explains why a brand's biggest account, reranked by net-revenue yield, often falls to the bottom of the list.
Three CPG penetration metrics get called one name: distribution, velocity vs. distribution, and household. Confusing them means funding the wrong strategy.
112 stores where slotting was paid and nothing scans. Classifying and dollarizing authorization voids turns a hunch into a ranked broker work list.
Trial vs repeat purchase: high penetration with low repeat means spending to acquire buyers who never come back. Product failure disguised as growth.
A specialty food brand's operating decisions are finite and answerable with rules, not dashboards. CPG analytics as a question engine, not a BI project.
Distribution tells you where you are. Scan velocity tells you how fast you sell there. That distinction drives expansion, pruning, and rationalization.
Distribution penetration is the gap between authorized and scanning doors, where slotting is paid and revenue never arrives. Most brands cannot state it.
Sales rose on price while fewer households bought each quarter. Three-lever sales decomposition catches erosion disguised as growth.
Applying a five-layer cost waterfall to 10 channels shows gross revenue rank and contribution rank diverge by 3-4 positions for most specialty food brands.
SPINS vs. Retail Link: one covers natural channel trends and share, the other Walmart store-level POS. A framework for which one answers your question.
Specialty food brands spend 15-20% of revenue on trade promotions and can't say which worked. Trade spend optimization starts by connecting three data streams.