How the Best CPG Teams Unlock Retailer-Specific Trade Spend Insights—Without the Guesswork
If you’ve ever felt like you’re throwing trade dollars into a black hole, you’re not alone. Trade spend is one of the largest budget items for consumer packaged goods (CPG) companies, yet many sales and finance teams still struggle to answer basic questions like: Are we spending in the right places? Which accounts are driving the most ROI? Where are we wasting money?
Here’s the good news: you don’t need a full system overhaul to start answering those questions. You just need to use the data you already have—specifically, your deductions and shipment data—to unlock powerful insights.
Let’s break that down with a real-world example.
A Trade Spend Transformation Story
A nationally recognized soup brand knew they needed to take a more strategic approach to its trade spend. They suspected inefficiencies in their retail investment strategy but lacked the visibility to pinpoint the issues.
The breakthrough came when they began using a tool that allowed them to analyze their trade spend by retailer, all the way down to the category and item level. By layering shipment data with deductions, they uncovered something critical: they were overspending on underperforming smaller accounts and under-investing in the larger ones that drove 80% of their business.
With this newfound visibility, the team was able to make data-backed decisions. They surgically reduced spend at underperforming retailers and redeployed it to high-potential accounts. They also set retailer-specific trade budgets with far more granularity.
The result? Year-over-year sales growth jumped by 25%—and they stayed within their trade budget.
Start with What You Already Have
The lesson here is simple: your deductions and shipment data are goldmines. You don’t need a new ERP or trade promotion software to get started. The best teams are already using what they have to make smarter decisions at the account level.
Retailer-specific insights don’t just help you reallocate funds—they give you the clarity to sell smarter, reduce inefficiencies, and maximize every trade dollar.
So if you're staring at stacks of deductions or endless spreadsheets, don’t wait for the perfect system. Start mining the data you already have. The clarity—and the results—will follow.
Ready to Do the Same?
If you’re tired of flying blind with your trade dollars, now’s the time to act. TrewUp is offering free trade spend health checks, where they take six months of your deduction documents and turn them into an actionable, retailer-specific spend analysis.
You’ll finally see, line by line, where your dollars are going—and where they should be going instead.
Frequently Asked Questions About CPG Trade Spend Optimization
What is trade spend in the consumer packaged goods (CPG) industry?
Trade spend refers to the money CPG brands allocate to retailers to promote their products. This includes promotional discounts, slotting fees, off-invoice deals, and other incentives. Trade spend is one of the largest budget items for most CPG companies and plays a critical role in driving retail sales.
Why is trade spend optimization important for CPG brands?
Without optimization, trade dollars can be wasted on low-impact promotions or underperforming accounts. Optimizing trade spend allows CPG teams to improve ROI, boost sales, reduce overspending, and invest in the retailers and promotions that deliver real growth.
How can CPG companies analyze trade spend performance?
The most effective approach is to combine shipment data (what’s sold to each retailer) with deduction data (what’s actually spent on trade promotions). This layered view helps CPG teams evaluate:
How much they’re spending per account or promotion
What sales are being driven as a result
Which accounts deliver the highest return on trade investment
What data do you need for trade spend analysis?
To get a clear picture of trade spend performance, you need:
Shipment data: Revenue by SKU, region, and account
Deduction data: Spend broken down by promotion, activity, or retailer
Optional: POS data, syndicated data, or marketing spend to enrich the analysis
Can you optimize trade spend without a trade promotion management (TPM) system?
Yes. Many CPG companies start with the data they already have. By applying analytics to deductions and shipments, teams can uncover insights without needing a full TPM or ERP implementation. This allows brands to move quickly and make improvements immediately.
What are common signs of inefficient trade spend?
Overspending on low-growth or declining retailers
Equal trade budgets across accounts, regardless of performance
Lack of visibility into which promotions are working
Manual data work with inconsistent tracking
Read our blog post 10 Signs You’re In the Dark About Your Trade Spend and What To Do About It to learn more.
What are some proven strategies to improve trade spend ROI?
Set retailer-specific budgets based on sales contribution and potential
Reallocate funds away from underperforming promotions
Use analytics to evaluate trade events post-execution
Focus on driving incremental sales, not just volume
Align finance, sales, and RGM teams with a shared view of account performance
How do top CPG brands approach trade spend optimization?
High-performing brands track trade performance by retailer and category. They continuously monitor what’s working, shift dollars accordingly, and avoid one-size-fits-all planning. A data-first approach allows them to reduce waste, prioritize growth, and build better retailer partnerships.
What business impact can trade spend optimization deliver?
Brands that optimize trade spend often see:
Increased sales without increasing total spend
Higher ROI per promotional dollar
Improved planning and forecasting accuracy
Stronger alignment between sales, finance, and operations
Reduced reliance on guesswork or flat-budget allocations
What’s the best way to get started with trade spend optimization?
Start by asking:
Where are we spending the most?
Which accounts generate the best return?
What promotions actually moved the needle?
From there, create a baseline view of spend vs. revenue by retailer, and look for quick wins where spend can be better aligned with performance.
