Depletions are the cases a distributor sells to retailers. They're a better signal of demand than shipments, which only show what the distributor bought from you. Tracking depletions by market and account, alongside distribution points, rate of sale, reorders, and inventory on hand, shows where a brand is working.
Three numbers, three different stories
- Shipments (sell-in): cases you sell to distributors. Easy to measure, but they can be inflated by loading inventory into the channel.
- Depletions: cases distributors sell to retailers. The core measure of trade demand.
- Consumer takeaway: what retailers sell to consumers, measured through retail scan data where it's available.
When shipments grow faster than depletions, inventory is building up at the distributor. That usually leads to slower reorders later.
The KPIs worth tracking
- Depletions by market and account, compared with the prior period and your plan
- Distribution points: the number of accounts buying your brand
- Rate of sale: cases per account per month, which shows whether accounts are selling through
- Reorder rate: the share of accounts that buy again
- On-premise vs. off-premise mix
- Distributor inventory on hand, in days or weeks of supply
Getting the data
Your main source is distributor depletion reporting. Agree on the format, level of detail (ideally by account), and frequency when you sign, not after. Many brands also use third-party depletion data services and, for retail, syndicated scan data. Whatever the source, consolidate it in one place so you can compare markets on the same basis.
Turning data into action
Review depletions with each distributor on a regular cadence, tied to the joint business plan. Use the data to focus reps on accounts that reorder, fix accounts that bought once and stopped, and decide where to add programming. At the portfolio level, depletion trends tell you which markets are ready for more investment and which need attention before you expand.
Destino's managing director spent nearly a decade building a consumer goods analytics practice, and depletion and sell-through reporting is a core part of our fractional CFO and distributor development work.
Common questions
What's the difference between shipments and depletions?
Shipments are what you sell to the distributor; depletions are what the distributor sells to retailers. Depletions are the better measure of real demand.
How often should I review depletions?
Monthly is a common minimum, with deeper quarterly reviews alongside each distributor's joint business plan. Fast-moving launches may warrant weekly checks.