Glossary
CPG glossary
Plain-English definitions of the terms that come up when you work with CPG and retail data — what the acronym means, how the money moves, and where analysts get tripped up. Written for the person mid-analysis, not for a textbook.
The vocabulary here spans the three places CPG analysts actually live: syndicated data (ACV, TDP, MULO+), retailer reporting (banner, off-invoice, scan-down, billback), and the trade lines on a brand’s P&L (slotting, deductions, distributor margin). Each entry assumes you already know your job — what you need is the word, not a lesson on what CPG is.
Entries are short on purpose: a working definition, why it matters, and a worked example or pitfall an analyst would actually hit. When a term ties to a fuller methodology (how to set a post-promo baseline, why banner-mix reads can mislead), we link out to the relevant page in the /learn library so the glossary stays scannable instead of turning into essays. New terms get added as they come up in real work — if something’s missing, it’s because nobody we built this for has needed it yet.
Assortment vs distribution in CPG, explained
Assortment is the set of SKUs a retailer chooses to carry. It is not the same as distribution, which measures how widely one SKU is sold.
Baseline sales: the non-promoted demand line
Baseline sales are the units you would have sold with no promotion, the modeled non-promoted demand line. Here's how it gets estimated.
Cannibalization in CPG, explained
Cannibalization is when a new SKU or promo steals volume from your own existing items instead of from competitors. Here's how to measure it.
Case pack and selling units in CPG, explained
A case pack is how many selling units (eaches) ship inside one case. Here's how cases, eaches, and pallets relate, and where the math breaks.
What is category management in retail?
Category management is running a product category as one strategic business unit, with shared goals between the retailer and a lead supplier.
Co-op advertising and MDF in CPG, explained
Co-op advertising is when a brand funds part of a retailer's advertising of that brand's product. Here's how accruals, MDF, and claims actually work.
Consumption vs shipment data in CPG, explained
Consumption data is what shoppers bought at the register; shipment data is what you shipped to the retailer. The gap is inventory and forward buy.
CPG broker: fees and broker vs distributor
A CPG broker is an outsourced sales rep who sells a brand into retailers and distributors for a commission, usually 3 to 7% of sales.
CPG distribution: DSD vs warehouse, explained
CPG distribution is how a product travels from the plant to the store shelf, either direct-store-delivery or warehouse-delivered through a distributor.
Days of supply and weeks of supply, explained
Days of supply is on-hand inventory divided by average daily demand. It tells you how long your stock lasts before you run out at current velocity.
Demand forecasting in retail and CPG, explained
Demand forecasting is the practice of predicting how many units of a product will sell in a future period. Here's how the baseline-plus-lift math works.
Everyday low price (EDLP) vs Hi-Lo pricing
Everyday low price (EDLP) is a retail strategy of steady low shelf prices instead of promotional swings. Here's how it differs from Hi-Lo.
Forward buying and diversion in CPG, explained
A forward buy is when a retailer or distributor over-orders on a deal to resell later at full margin. Here's why it wrecks promo ROI and shipment data.
Incremental sales and promotional lift, explained
Incremental sales are total sales minus baseline, the units a promotion actually added. Here's how to compute lift and net out the leaks.
Inventory management in CPG, explained
Inventory management balances availability against the working capital tied up in stock. Here's how safety stock, turns, and reorder points work.
Minimum advertised price (MAP), explained
Minimum advertised price (MAP) is the lowest price a retailer may publicly advertise a product for. It governs the ad, not the final sale price.
Off-invoice vs billback trade allowances, explained
Off-invoice deducts a trade allowance on the invoice; billback has the retailer claim the money back later. Here's the difference.
On-shelf availability (OSA) in retail, explained
On-shelf availability is the percentage of time a product is actually on the shelf and buyable by a shopper. Here's why it differs from warehouse in-stock.
Performance matrix in CPG analytics
A performance matrix is a 2x2 that plots two CPG metrics, usually distribution against velocity, to sort SKUs into winners, hidden gems, and laggards.
What is a planogram (POG)? Shelf layout
A planogram (POG) is the diagram showing exactly where each SKU sits on a shelf: which position, how many facings, and at what eye level.
Price pack architecture (PPA) in CPG, explained
Price pack architecture is the grid of pack sizes and price points a brand runs across channels so each channel gets the right format at the right price.
Private label vs national brand, explained
Private label is a product made for and sold under a retailer's own brand. Here's how it differs from a national brand on share and margin.
Retail margin and keystone markup, explained
Retail margin is the retailer's cut between its cost and the shelf price. Here's how it differs from markup, and how keystone pricing works.
Retail shrink (shrinkage) in CPG, explained
Retail shrink is inventory lost to theft, damage, spoilage, and error, measured as a percent of sales. Here's how it hits margin and the data.
Sales velocity in CPG, explained
Sales velocity is how fast a product sells once you account for how many stores carry it, usually units per store per week. Here's how to read it.
Scan-based trading (SBT) in retail, explained
Scan-based trading is a consignment model where the vendor owns the inventory until it scans at the register. Here's how pay-on-scan works.
Shopper marketing vs trade marketing, explained
Shopper marketing is marketing aimed at the shopper at or near the point of purchase. Here's how it differs from trade marketing.
SKU rationalization: pruning the tail, explained
SKU rationalization is cutting low-velocity products from a line to free shelf space and working capital. Here is how to decide what to prune.
Slotting fees and slotting allowances, explained
Slotting fees are upfront payments a CPG brand makes to a retailer for shelf space for a new SKU. Here's how they're charged and what a launch costs.
What is FMCG? Meaning, examples, and FMCG vs CPG
FMCG means fast-moving consumer goods: cheap products that sell fast and turn often. It's the same category US analysts call CPG.
What is IRI data? IRI, now Circana, explained
IRI was Information Resources Inc, a syndicated retail-measurement provider. It merged with NPD in 2022 to become Circana, selling POS and panel data.
Distributor margin in CPG, explained
Distributor margin is the cut a CPG distributor takes between the brand's sell price and the retailer's cost. Here's how it's calculated.
Trade marketing in CPG, explained
Trade marketing is how CPG brands invest in retailers and distributors to win shelf space and drive sell-through. Here's what it covers.
What is CPG? Consumer packaged goods, explained
CPG stands for consumer packaged goods, the everyday products sold through retail. This is what counts as a CPG and how the industry makes money.