Net Incremental Value

Many FMCG initiatives appear profitable because the calculation starts with gross uplift and stops too early. A promotion, price move or launch may show extra sales while quietly discounting loyal shoppers, pulling volume from sister SKUs, borrowing future demand or shifting sales between retailers. The result is a systematic overstatement of return. Teams continue to fund activity because it looks positive in a gross P&L, even though the business would have been better off reducing the spend and redeploying it to higher-quality growth.