Cannibalisation Analysis

FMCG portfolios are full of brands, packs, flavours, formats and price tiers that compete with each other. A new SKU, large promotion or price move can look successful at product level while weakening the wider portfolio. The danger is not cannibalisation itself. Some internal switching is useful when it moves shoppers to a more strategic, higher-margin or more sustainable product. The danger is unmanaged cannibalisation: trading shoppers down, fragmenting the range, subsidising your own loyal base or overstating the success of launches and promotions.