How do I measure on-trade distribution and rate of sale?
By Better Bartender · Published
Measure distribution as reach across a defined set of accounts, and rate of sale as sales divided by a clearly stated account and time denominator. For example, 600 litres across 20 active accounts in four complete weeks is 7.5 litres per active account per week.
What does “distribution” actually mean?
First identify the evidence. A stocked listing, a menu mention and an account with observed sales are different definitions of presence. For the worked example below, active-account distribution means accounts with positive brand volume within accounts with positive category volume, divided by those category-active accounts. It measures recorded activity in this panel, not every stocked venue.
Keep the geography, category and period fixed. A network that gains ten reporting venues changes its denominator even if the brand has won no new listing. Reports with missing days also need a coverage rule before comparisons are useful.
A worked distribution and velocity example
These invented figures describe a complete four-week reporting panel, using verified, comparable liquid-volume units and no returns.
- 50 accounts have positive category volume.
- 20 of those accounts have positive brand volume.
- Brand volume totals 600 litres.
- Total category volume is 3,000 litres, including unassigned brand volume.
Active-account distribution is 20 ÷ 50 × 100 = 40%. Volume per active brand account is 600 ÷ 20 = 30 litres over four weeks. With all 20 accounts observed for all four weeks, weekly velocity is 600 ÷ (20 × 4) = 7.5 litres per account-week. Brand volume share within this panel is 600 ÷ 3,000 × 100 = 20%.
How can distribution rise while velocity falls?
Suppose the next equally complete four-week period records 750 litres across 30 active brand accounts within the same 50-account panel. Brand volume rises 25%, distribution rises to 60%, but weekly velocity falls to 6.25 litres per active account. Newer or lower-volume accounts may explain part of the difference. Inspect continuing accounts separately before concluding that the established estate weakened.
If an account starts midway through the period, decide whether your measure uses all reporting account-weeks or active selling weeks. Both can answer useful questions; mixing their denominators cannot. Report the definition alongside the result.
What should stay unknown?
No recorded sale does not prove an item was unavailable. A missing report does not prove zero sales. Generic “house gin” cannot be assigned to a named brand without additional evidence. Negative net quantities from returns can also make a bounded share or distribution figure inappropriate; investigate the underlying adjustments rather than forcing a percentage.
Can this be called market share?
A panel share describes the reporting accounts and category measured. A broader market estimate needs evidence of coverage and an appropriate estimation method. NIQ’s On-Premise Measurement overview identifies sales, distribution and price as separate measurement dimensions. Better Bartender’s example here is our own teaching calculation, not NIQ data or a claim to equivalent coverage.
Use these measures to frame account investigations. Explore the brand analytics we are developing.