Circana

Circana is a leading market research and consumer behavior analytics firm that provides advanced basket-level-scanner-data to the consumer packaged goods (CPG) industry. Alongside competitors like nielseniq, Circana provides critical cross-basket scanner data that helps brands understand complex retail dynamics and consumer purchasing habits.

Cannibalization Measurement and Analytics

For multinational brewers and beverage brands, Circana provides the specific algorithmic definition and measurement methodology for tracking cannibalization at the scanner level.

Mathematical Definition

Circana defines cannibalization mathematically as the sales gained on a newly launched SKU that are offset by losses on existing SKUs within the same brand. The specific metric is calculated as:

• Cannibalization Rate = (Lost units or dollars on existing SKUs ÷ Gains on the focal SKU) × 100

Internal Brand Optimization

By utilizing Circana’s advanced market data segmentation, beverage brands can calculate internal shifts between their own products. This data allows companies to optimize their pack sizes, flavor mix, and trade-spend-optimization to ensure net brand growth rather than mere internal substitution.

Cross-Category Dynamics

Circana’s retail analytics are also essential for proving the exact dynamics of cannibalization between entirely different beverage categories. For example, while consumer surveys might indicate a shift away from carbonated-soft-drinks-csd toward non-alcoholic beer, Circana’s data can definitively show whether consumers are concurrently dropping CSDs from their shopping baskets when adding 0.0% beer. This validates the 1:1 substitution effect at the retail level.