CPG and retail terms, in plain English

78 terms every brand and broker hears in buyer meetings, from ACV to velocity.

ACV (All Commodity Volume): A measure of distribution weighted by store size. 60% ACV means your item is in stores that account for 60% of total retail sales, not 60% of stores.
Allowance: Money or discount a manufacturer gives a retailer or distributor, usually tied to a promotion, new item or display.
Assortment: The full set of items a retailer carries in a category. Buyers manage assortment to balance choice, space and profit.
Authorization: A retailer's approval to carry an item in some or all stores. Getting authorized is step one; getting on shelf and selling is step two.
Backhaul: When a retailer's own trucks pick up product from a supplier on the return trip, often in exchange for a freight allowance.
Bill-Back: A promotional payment the retailer bills to the manufacturer after the promotion runs, based on units sold or performance.
BOGO: Buy one, get one. A promotion type that drives trial and volume but can hurt margin if not planned carefully.
Broker (Food Broker): An outsourced, commission-based sales agent who represents brands to retailers and distributors. Brokers never take ownership of inventory; commissions commonly run in the low single digits as a percentage of sales.
Buyer (Category Buyer): The retailer employee who decides which items a category carries, at what cost, and how they are promoted.
Case Pack: The number of retail units in one shipping case. Retailers want case packs that match how fast an item sells so shelves stay full without overstock.
Category Captain: A supplier, usually a category leader, that helps a retailer analyze and plan a category, including recommendations on assortment and shelf layout.
Category Management: Managing a category as its own business unit, using data to decide assortment, pricing, promotion and shelf placement.
Category Review (Line Review): The scheduled window, often once a year per category, when a retailer reviews items and decides what to add, keep or cut. Missing the window can mean waiting a year.
Chargeback: A penalty or deduction a retailer takes from a supplier's payment for issues like late delivery, labeling errors or damaged goods.
Circular (Ad Feature): A retailer's weekly ad, print or digital. Getting featured usually requires a price reduction and promotional funding.
Co-op Advertising: Marketing that a manufacturer funds in whole or part and the retailer runs, such as circular ads or digital placements.
Co-Packer (Co-Man): A contract manufacturer that produces and packages products for a brand. Buyers often ask about co-packer capacity and food safety audits.
COGS (Cost of Goods Sold): The direct cost to make a product, including ingredients, packaging and labor. It drives every pricing and margin decision.
Deduction: Money a retailer or distributor subtracts from an invoice payment for promotions, fees or penalties. Unmanaged deductions quietly erase margin.
Demo (In-Store Sampling): An in-store tasting or product demonstration used to drive trial, often paid for by the brand.
Distribution Center (DC): A retailer or distributor warehouse that receives product in bulk and ships it to stores.
Distributor: A company that buys product from manufacturers, warehouses it and sells it to retailers, taking a margin. Examples include UNFI and KeHE.
DSD (Direct Store Delivery): When a manufacturer or distributor delivers product straight to stores, bypassing the retailer's warehouse. Common in beverages, snacks and bread.
EDI (Electronic Data Interchange): The standard electronic format retailers use to send purchase orders, invoices and shipping notices. Most major retailers require EDI capability.
EDLP (Everyday Low Price): A pricing strategy that keeps prices consistently low instead of relying on frequent promotions. Walmart is the best-known EDLP retailer.
Endcap: The display at the end of an aisle. Endcaps drive big lifts but are usually tied to promotional funding.
Facing: One product unit placed at the front of the shelf. More facings mean more visibility and fewer out-of-stocks.
Fill Rate: The percentage of ordered units a supplier actually ships. Low fill rates lead to chargebacks and lost trust.
Free Fill: Free product a new supplier provides to stock shelves at launch, a common alternative or add-on to slotting fees.
Gross Margin: Revenue minus cost of goods, as a percentage of revenue. Brands need enough gross margin to fund trade, freight and marketing.
GS1 / UPC / GTIN: GS1 is the organization that issues barcodes. A UPC is the retail barcode; a GTIN is the global item number behind it. Retailers require GS1-issued codes.
HBC: Health and beauty care, the department that includes personal care, cosmetics, vitamins and over-the-counter products.
Hi-Lo Pricing: A pricing strategy with higher everyday prices and frequent temporary promotions, the opposite of EDLP.
Incrementality: Sales a new item or promotion adds to the category rather than stealing from other items. Buyers prize incremental growth.
Inner Pack: A smaller pack inside a shipping case, used when stores order in quantities smaller than a full case.
KeHE: A major U.S. distributor focused on natural, organic, specialty and fresh products.
Landed Cost: The full cost of getting product to the retailer, including COGS, freight, fees and handling.
Line Extension: A new flavor, size or variety added to an existing product line.
Markdown: A permanent or clearance price reduction, often taken on slow-moving or discontinued items and sometimes charged back to the supplier.
MCB (Manufacturer Chargeback): A distributor deduction to recover promotional costs it passed through to a retailer on the manufacturer's behalf.
MSRP: Manufacturer's suggested retail price. Retailers set final shelf prices, but MSRP anchors margin conversations.
Off-Invoice (OI): A discount taken directly off the invoice price for a set period, usually to fund a promotion.
On-Shelf Availability (OSA): How often a product is actually on the shelf when shoppers look for it. Out-of-stocks cost sales and hurt velocity.
OTIF (On Time In Full): A supplier performance metric measuring whether orders arrive on time and complete. Several large retailers fine suppliers who miss OTIF targets.
Pallet (Ti-Hi): Ti is the number of cases per pallet layer; Hi is the number of layers. Efficient pallets lower freight cost and are required by club stores.
Planogram (POG): The diagram that shows exactly where each item sits on the shelf. New items must fit the planogram at the next reset.
POS Data (Scan Data): Point-of-sale data from store checkout scanners showing units and dollars sold. It is the proof buyers trust most.
Price Elasticity: How much sales change when price changes. It shapes promotion depth and everyday pricing.
Private Label (Store Brand): Products sold under a retailer's own brand. Private label competes directly with national and emerging brands on price.
Promo Lift: The increase in sales during a promotion compared to baseline sales.
Pull-Through: Work to make sure an authorized item actually reaches shelves and sells, including store visits, demos and marketing.
Reset: When a retailer physically rearranges a category's shelves to match a new planogram. New items usually launch at a reset.
Retail Link: Walmart's supplier data system, where suppliers see store-level sales, inventory and performance data.
Retail Media Network (RMN): A retailer's advertising platform, such as Walmart Connect, Kroger Precision Marketing or Target Roundel, that lets brands buy ads using the retailer's shopper data.
ROAS (Return on Ad Spend): Revenue generated per dollar of advertising. The main efficiency measure for retail media campaigns.
Scan-Based Trading: An arrangement where the supplier owns inventory in the store until it scans at checkout, used by some retailers for certain categories.
Sell Sheet: A one-page summary of a product for buyers: item details, pricing, pack configuration, key claims and why it will sell.
Sell-In: Selling a product to the retailer or distributor (the buyer's purchase order). It is not the same as the shopper buying it.
Sell-Through: The rate at which shoppers buy product off the shelf. Strong sell-through keeps an item in the set.
Shelf-Stable: Products that don't need refrigeration or freezing, typically sold in center store.
Shipper Display: A pre-packed, ready-to-place cardboard display used for promotions and secondary placements.
Shrink: Inventory lost to theft, damage, spoilage or errors. Buyers weigh shrink risk heavily for fresh and refrigerated items.
SKU: Stock keeping unit, the individual item identifier for each distinct product, flavor and size.
SKU Rationalization: Cutting slow-selling items to free up shelf space and simplify the assortment, usually during category reviews.
Slotting Fee: A fee some retailers charge to place a new item in their warehouses and on shelves. Amounts vary widely by retailer, category and region.
SPINS: A data provider that tracks retail sales, especially in natural, organic and specialty channels.
Spoils Allowance: A deduction or allowance that covers product that expires or is damaged before it sells.
TPR (Temporary Price Reduction): A short-term shelf price cut, usually funded by the manufacturer, without an ad feature or display.
Trade Promotion: Promotions funded by manufacturers and executed by retailers, such as TPRs, features, displays and allowances.
Trade Spend: The total money a manufacturer spends on trade promotions, allowances and retailer fees. It is often one of a brand's largest expenses.
Turns (Inventory Turns): How many times inventory sells through and is replaced in a period. Faster turns mean better use of shelf space.
UNFI: United Natural Foods, one of the largest U.S. grocery distributors, supplying natural, organic and conventional products.
Velocity: How fast an item sells, usually measured in units or dollars per store per week. It is the single most-watched number in a category review.
Vendor Portal: A retailer's online system for supplier setup, item submission, orders and invoices.
VMI (Vendor-Managed Inventory): When the supplier monitors store or DC inventory and manages replenishment for the retailer.
Walmart Connect: Walmart's retail media network, which lets brands buy sponsored product, search and display ads across Walmart's site, app and stores.
White Space: An unmet need or gap in a category's current assortment, the strongest reason a buyer adds a new item.
Wholesale Price: The price a manufacturer charges a retailer or distributor, before the retailer's markup.

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