CPG Terms Explained, a series by Cyril Ovely

August 2026

CPG Terms Explained: A Domain Guide for Engineers, Architects, and Curious Minds

When engineers join our technical team, they're brilliant at software but most have never worked in CPG. They don't know what ACV means, why a planogram matters, or what happens when a trade promotion goes wrong. So I started writing these explanations. This series is the result.

CPG runs on a dense, borrowed vocabulary. The same shelf can be measured as ACV, distribution points, or facings depending on who you ask, and the same metric changes its name as you cross from the US to India to New Zealand. For anyone building software for the industry, or stepping into it for the first time, that terminology is the real barrier, not the technology.

So this series treats the vocabulary as a system, not a list. Each entry defines a term the way a practitioner uses it, grounds it in a real scenario with numbers, and, where it helps, shows how the concept maps to a data model or system design. Everything is organized into seven functional pillars, so you can start where your work does and follow the threads from there.

Who this series is for

Explore by functional area

Each pillar covers a functional area of CPG operations. Start with the area most relevant to your work, or browse the complete A-Z index.

Product code deep dives

Longer explainers on the identification codes behind every CPG product: barcodes, SKUs, and the UPC, EAN, and GTIN system that ties them together.

What makes this different

There are other CPG glossaries online. Most are dry, one paragraph definitions written for business audiences. This series is different in three ways:

• Real world examples with numbers. Every article includes a scenario showing how the term works in practice, with actual calculations and tables. Not just abstract definitions.
• Technical bridges. Where relevant, each article notes how the domain concept maps to software, data models, or system design. Because this series is written for people who build things.
• Global perspective. Terms are tagged by region (US, UK, India, NZ/AU) because the same concept often goes by different names in different markets. No US centric bias.

Where to start

• If you work on distribution or route to market: start with What Is ACV? and What Is Route to Market?
• If you work on store execution or merchandising: start with What Is a Planogram? and What Is Out of Stock?
• If you work on trade promotion or pricing: start with What Is Trade Spend? and What Is Sell In vs Sell Out?
• If you're new to CPG entirely: start with What Is FMCG? for the big picture, then follow the pillar that matches your work area.

Recent articles

New articles are published regularly. If there's a term you want covered, reach out on LinkedIn or Medium.