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Cannibalization
Sales gained on one SKU that are offset by losses on your other SKUs.
Definition
Cannibalization measures how much a new item or promotion moves sales away from existing items within the same brand, reducing net gain.
How to Calculate
Subtract lost units or dollars on existing SKUs from the gain on the focal SKU. Percent cannibalization equals losses on other SKUs divided by gains on the focal SKU times 100.
Why it Matters
Prevents overstating results and helps optimize the lineup for total brand growth.
Key Advantages
Clarifies net impact of launches, guides pack and flavor mix, and improves promo design by limiting internal shifts.
Example
A sparkling water launch gains 1,000 units, but classic lime loses 600 units, so cannibalization is 60 percent.
Use it to
Measure sales lost on existing SKUs when a new item or promotion gains volume to determine net effect. Reduce internal switching by adjusting price, pack, or timing so total brand sales increase.
