Depletions

For alcoholic-beverage companies, the rate at which product is sold FROM distributors and wholesalers TO retailers (bars, stores, restaurants), shown as year-over-year growth -- as opposed to shipments, which are sales from the producer TO the distributor. Depletions are the better read on true end-market demand because they measure product actually moving toward the consumer, whereas shipments can be inflated or depressed by distributors building or drawing down their own inventory. When shipments run ahead of depletions, distributor inventories are building -- a headwind for future shipment growth; when depletions outrun shipments, a restock is likely coming.

Related terms

Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ADR · ARPU · Average Length Of Stay

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