CPG Terms Explained, a series by Cyril Ovely

Cyril Ovely, Co-Founder and CTO, Vxceed  ·  August 2026

What Is TDP (Total Distribution Points)? The Single Metric That Captures Both Reach and Depth

Total Distribution Points combine how widely your product is distributed (ACV %) with how deeply it is assorted (average items carried) into one number, giving you a complete picture of your distribution footprint.

The short answer

Total Distribution Points (TDP) measure distribution by multiplying your ACV Distribution percentage by the average number of items retailers carry. If you have 70% ACV distribution and retailers stock an average of 4 of your 8 SKUs, your TDP is 280 (70 × 4). It is the metric that captures both where you are sold and how much of your range is available, all in a single number.

TDP is the distribution metric that category managers and sales directors actually use for benchmarking, because it tells a more complete story than either ACV or numeric distribution alone.

Why it matters in CPG

ACV distribution tells you how many doors you are through. Average items carried tells you how deep your assortment is. But neither tells the full story alone.

A brand with 90% ACV distribution but only 1.2 average items is basically a single SKU presence, vulnerable to delisting if that one item underperforms. A brand with 2.5 average items but only 30% ACV has strong depth where it exists, but is invisible to most of the market.

TDP captures both dimensions. It answers the question: "How much total distribution weight does this brand have?"

Decisions TDP informs:

• Competitive benchmarking: "Our TDP is 240; the leading brand's is 420. Where is the gap, reach or depth?"
• Launch tracking: "We launched 6 SKUs. After 3 months, TDP is 180. Are we building distribution or just listing?"
• Assortment strategy: "Our TDP is limited by low average items. We need to sell in more SKUs to existing accounts before expanding to new ones."
• Sales force priorities: "Team A has high ACV but low AIC (sell more SKUs). Team B has low ACV but high AIC (find new accounts)."

How it works in practice

Scenario: Three competing coffee brands in the same market:

What the numbers reveal:

Brand Alpha is the balanced player, present in most stores with a reasonable range. Their challenge: incremental ACV gains are expensive because the remaining 15% is small and hard to service. Better to push AIC from 3.2 to 4.0.

Brand Beta has the highest TDP despite lower ACV. They are concentrated in larger retailers with full assortment. Their opportunity: expand ACV by entering mid tier chains where their strong range would be welcomed.

Brand Gamma looks widespread (92% ACV!) but TDP reveals the truth. Most stores only carry one SKU. This is a "listing fee" brand: listed everywhere, stocked minimally. Their priority: convert listings into active assortment by demonstrating sell through on the lead SKU.

TDP over time is equally revealing. If your TDP grew from 200 to 240 over 6 months, you need to decompose the growth: did ACV improve (new stores), or did AIC improve (more SKUs per store)? The answer determines your next move.

The formula

TDP = ACV Distribution % × Average Items Carried

Example:

• ACV Distribution = 75%
• Average Items Carried = 3.5
• TDP = 75 × 3.5 = 262.5

Maximum possible TDP = 100 (ACV) × number of SKUs in your range. If you have 10 SKUs, max TDP is 1,000. Most brands operate at 20 to 40% of their maximum, which tells you there is always room to grow.

Key metrics & related concepts

• ACV Distribution %: the reach component of TDP
• Average Items Carried (AIC): the depth component of TDP
• Average Items Selling (AIS): similar to AIC but measures items actually scanning at POS, not just listed
• Numeric Distribution: unweighted store count percentage; useful alongside TDP for the full picture
• Sales per $MM ACV: normalizes sales by distribution size; pairs with TDP for productivity analysis

Common mistakes & misconceptions

Mistake #1: Chasing TDP at the expense of profitability.
Adding SKUs to boost AIC, and therefore TDP, only works if those SKUs actually sell. Dead stock inflates TDP but destroys margins through returns, write offs, and retailer frustration. Every SKU addition should be justified by consumer demand data.

Mistake #2: Comparing TDP across categories.
TDP is category specific. A TDP of 300 means something different in coffee (where 8 to 10 SKUs is normal) than in laundry detergent (where 25+ SKUs is common). Only compare TDP within the same category.

Mistake #3: Ignoring the difference between AIC and AIS.
Average Items Carried counts everything the retailer has listed. Average Items Selling counts only items that are actually scanning at POS. If AIC is 5 but AIS is 2, you have 3 SKUs sitting in the backroom or on the shelf without moving. The gap between AIC and AIS is a red flag for assortment quality.

Mistake #4: Treating TDP as a lagging metric.
TDP changes slowly. It is a stock measure, not a flow. By the time TDP shifts, distribution decisions were made weeks or months ago. Leading teams track leading indicators: listing approvals, first orders, activation rates, and velocity by SKU, which predict where TDP is heading.

Regional variations

Global: TDP is used worldwide wherever syndicated retail data (Nielsen, Circana, Kantar) is available.

• US: TDP is a standard metric in NielsenIQ and Circana reporting. Often broken down by channel (FDM, MULO, xAOC) and calculated at the brand, sub category, and individual SKU level.
• India: TDP calculation is less precise due to limited scanner data coverage. Many companies estimate TDP using distributor stock records and field audit data rather than syndicated panels.
• NZ/AU: With highly concentrated retail (2 to 3 major chains), TDP analysis often focuses on chain by chain performance rather than aggregate market measures.

How leading CPG teams use TDP

Leading commercial teams decompose TDP into its components monthly to diagnose distribution health. They set separate targets for ACV expansion and AIC growth, assign accountability to different teams (new business development drives ACV; range selling drives AIC), and track the gap between TDP and maximum potential TDP to quantify the remaining opportunity.

The best teams pair TDP with velocity data to separate genuine distribution growth from empty listings. A rising TDP backed by strong AIS growth means real shelf presence. A rising TDP with flat AIS means SKUs are piling up in backrooms, a problem disguised as progress.

Sources and further reading

• Circana: Total Distribution Points (TDP), Liquid Data CPG dictionary