Vermont Information Processing (VIP) is the industry standard for depletion data. For many brand analysts and operations managers, a VIP report is a massive spreadsheet that arrives as a static snapshot of the past. To maintain a competitive edge in 2026, the focus must shift from simply "receiving" data to translating these figures into clear operational signals.

Here are the essential VIP metrics that define the health and trajectory of a modern beverage brand.

 Days on Hand (DOH)

• The Definition: A calculation of how many days current inventory at a distributor will last, based on the average sales velocity of the previous period.
• The Strategic Value: DOH is the primary indicator of supply chain balance.
  
  • High DOH (60+ days): Signals trapped capital and inventory aging. This increases the risk of product going "out of code" and creates a liability for potential forced buy-backs.
  • Low DOH (<15 days): Signals an imminent out-of-stock (OOS). If the combined lead time for production and freight is 21 days, a 15-day DOH represents lost revenue that cannot be recovered.
• The Operational Signal: DOH should be used to dynamically adjust production schedules and freight priorities.

Points of Distribution (PODs)

• The Definition: The count of unique retail accounts that have purchased the product within a specific timeframe (usually 30, 60, or 90 days).
• The Strategic Value: PODs measure the brand's geographic and retail "footprint." However, the total count can be a vanity metric if not qualified.
• The Operational Signal: Track "Effective PODs"—accounts with at least two orders in the last 90 days. A growing total POD count paired with flat "Effective PODs" indicates a high churn rate, where the sales team is acquiring new accounts but failing to secure repeat business.

"Can-Buy" vs. "Did-Buy" Analysis

• The Definition: A comparison between every retailer in a distributor's system authorized to sell a specific category (Can-Buy) and those who have actually placed an order (Did-Buy).
• The Strategic Value: This identifies the Total Addressable Market (TAM) at the street level. It highlights exactly where the distribution "gaps" exist within a territory.
• The Operational Signal: This analysis should drive the sales "Hit List." Converting existing "Can-Buy" accounts is significantly more cost-effective than expanding into new territories or states.

Price-to-Retailer (PTR) Variance

• The Definition: The net price a distributor charges the retailer after accounting for discounts, depletion allowances, or quantity buys.
• The Strategic Value: Price integrity is vital for maintaining brand equity. Wild variances in PTR across different routes or districts can lead to price wars between neighboring retailers and fragment consumer perception.
• The Operational Signal: Monthly audits of PTR help identify if a distributor is using deep discounts to move volume at the expense of the brand's margin and long-term value.

Velocity (Units Per Store Per Week - UPSW)

• The Definition: Total depletions divided by active PODs, normalized for the week.
• The Strategic Value: Velocity is the most accurate measure of consumer demand. While PODs show where the product is, UPSW shows how fast it moves.
• The Operational Signal: Use UPSW to tier the retail portfolio. High-velocity accounts (the "Vanguard") require prioritized merchandising and support. Low-velocity accounts require a root-cause analysis: is the "pull" missing, or is the product simply not making it from the backroom to the shelf?

Summary

In the modern three-tier system, VIP data provides the foundation, but the value is found in the interpretation. By moving beyond total case sales and focusing on these five metrics, brands can transition from reactive reporting to proactive market management. Learn how Shopra.ai can help you make your VIP data smart.