ACV TDP - How to calculate TDP

To understand total distribution points, you have to know about all commodity volume (ACV) percentages. Your brand’s TDP is simply adding the %ACV for all of your items sold. Here is a brief primer on how to determine a product’s %ACV.

First, you have to know the total sales for each retailer. To keep things simple, let’s assume that there are three stores in our example market.

Next, you have to know whether a product scans in each store (meaning it’s in stock and on the shelves).

Store A sells $50 Million annually, store B sells $70M, and store C sells $80M. Let’s say that your product is not sold in store A.

Ideally, you want to calculate the weighted %ACV to know how well a specific product is being distributed. For example, an unweighted calculation would show that your product is in 67 percent of the market (2/3). However, a weighted distribution will look like this:

(Store B + Store C)/(All Three Stores)

We add stores B and C because your product is sold in both of them. In this case, the calculation would be:

(70 + 80)/(50 + 70 + 80) = 75 percent ACV

A weighted %ACV illustrates that your product is doing pretty well in distribution. By comparison, if your product was in stores A and B but not C, the %ACV would be 57.9.

As we mentioned, your brand’s TDP result from adding all the %ACV for each product. The maximum TDP you could have would be 100 percent distribution for each product. So, if you sold five products, your max TDP would be 500. That said, don’t assume that a lower number means you’re doing poorly. It simply illustrates how much growth you can expect in a given market.