ACV<\/span> is often referred to as %ACV for CPG brands, which offers a weighted value for products in specific stores. By looking at both the total <\/span>ACV<\/span> and %ACV, manufacturers can better understand the breadth of their product distribution.<\/span><\/p> Standard <\/span>ACV<\/span> is just the total dollar sales for a particular store. So, if a retailer sells $50 million worth of products in a week, that is its <\/span>ACV<\/span>.<\/span><\/p> Percent <\/span>ACV<\/span> is calculated differently, though. Rather than looking at one individual outlet, brands will look at all the stores within the region to determine how well their products are distributed. In that case, you divide the <\/span>ACV<\/span> of the stores in which your products are sold by the total number of stores in that market.<\/span><\/p> For example, let’s say that there are four outlets in the city and your product is sold in three of them. Each retailer’s <\/span>ACV<\/span> looks like this:<\/span><\/p> Since your products are in three of the four stores, your distribution is technically 75 percent (3 divided by 4). However, %ACV weights the calculation based on the total sales for each store. The formula looks like this:<\/span><\/p> Total <\/span>ACV<\/span> For Stores Carrying Your Product\/Total <\/span>ACV<\/span> For All Stores<\/span><\/p> Let’s say that your product is sold in stores 1, 2, and 4. Here’s what the calculation looks like:<\/span><\/p> 40+30+50 (120) \/ 40+30+60+50 (180) = 67%<\/span><\/p> Because store three has the highest <\/span>ACV<\/span> and your products aren’t sold there, you have less distribution overall. If you sold in stores 1, 3, and 4, your %ACV would be 83%.<\/span><\/p> As you can see, there is a pretty big difference between your %ACV when comparing product distribution in low-performing stores compared to high-performing stores. In our example above, it’s actually better to sell in store three because it has the highest sales.<\/span><\/p> Overall, knowing your %ACV can tell you whether your distribution is evenly weighted or not and can let you know which stores offer the best potential for increased sales.<\/span><\/p> When looking at a particular market, <\/span>ACV<\/span> can offer better insight than other metrics, such as physical size, location, and shelf space. For example, one store may have tons of room for your products, but it has fewer sales than a smaller retailer. <\/span>ACV<\/span> allows you to weigh each outlet so that you can focus on higher-quality retailers.<\/span><\/p> Usually, you want to look at <\/span>ACV<\/span> for specific products. Since <\/span>ACV<\/span> is calculated weekly, you’ll need to look at multiple weeks to get an average percentage. Here’s an example:<\/span><\/p> The total <\/span>ACV<\/span> for all three stores is 300 per week. During week one, Product 123 was sold in each store for a total %ACV of 100. During week two, the product wasn’t sold in any store, for a %ACV of zero. Week three saw a %ACV of 50, and week four was 67%.<\/span><\/p> Overall, for the entire month, the product’s %ACV was 54 (217\/4).<\/span><\/p> As we mentioned, this metric helps you qualify retailers so that you can focus your attention on the ones that matter most to your bottom line. If one store has significantly higher sales than another, it’s better to promote your products there than at a retailer with a much lower <\/span>ACV<\/span>. With this data, you can align your sales, marketing, and manufacturing teams to target high-quality storefronts.<\/span><\/p> Byzzer is a self-serve business intelligence platform that gives small CPG manufacturers the power of NielsenIQ data.<\/i><\/p>How is <\/b>All Commodity Volume<\/b> (<\/b>ACV<\/b>) Calculated?<\/b><\/h2>
Why is <\/b>All Commodity Volume<\/b> (<\/b>ACV<\/b>) Important for CPG Brands?<\/b><\/h2>
Benefits of <\/b>ACV<\/b><\/h2>
Example of <\/b>ACV<\/b><\/h2>
![\"Inline](\"https:\/\/microsites.nielseniq.com\/cpg-dictionary\/wp-content\/uploads\/sites\/11\/2021\/04\/ACV-example.001-1.png?w=1024\")
<\/figure><\/div>How to Use <\/b>ACV<\/b> For Your Business<\/b><\/h2>