ACV (All Commodity Volume) / Weighted Distribution (%ACV)
Definition
ACV refers to two related but distinct metrics in CPG.
%ACV Weighted Distribution (also called %ACV, ACV Distribution, and most commonly referred to as just ACV in everyday industry conversation): the percentage of a market's total ACV that comes from stores carrying a given brand, SKU, or category — weighting each store by its own sales volume, so a point of distribution in a major chain counts more than the same point in a small store. This is the sense most CPG professionals mean when they casually reference ACV.
ACV (the underlying base metric): the total dollar sales of all products sold through a store, or group of stores, over a given period — across every category the store carries, not just a specific brand or product type. %ACV Weighted Distribution is calculated using this figure as its foundation.
Watch the video below to learn more about ACV as it relates to CPG and why it matters.
How It's Calculated
%ACV Weighted Distribution=(Total ACV of Stores Carrying Your Brand ÷ Total ACV of All Outlets in Market) × 100.
A SKU only counts once it has actually scanned during the period, and this figure is non-additive across markets, products, or time periods.
ACV: Sum of total dollar sales of all products in the store(s) over a defined period.
Example
%ACV Weighted Distribution: A snack brand distributed through stores representing $40 billion in ACV within a $100 billion total market would have 40% ACV Weighted Distribution.
ACV: A Kroger location generating $50 million in annual sales has an ACV of $50 million — reflecting its total retail performance across all merchandise categories, not sales of any one brand.
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