[Dr. Jesse Core]

One topic that continually comes to mind when evaluating acquisitions in the beverage industry is sales velocity. Financial statements tell us what happened historically, but sales velocity provides a much more immediate indication of consumer demand and retailer confidence. A brand may generate respectable revenue today, but if sales per store begin to decline, future distribution and growth can quickly come under pressure.

This topic became the focus of my doctoral dissertation, where I studied the relationship between retail shelf space and sales performance through the lens of shelf space elasticity. My research reinforced my belief that commercial due diligence should extend well beyond historical financial results. Understanding how products perform at the shelf—and how retailers respond to those performance metrics—can materially affect the long-term value of an acquisition.

I’m curious whether others have encountered similar “leading indicators” in their industries.

If anyone is interested in the research, I’ve shared the published journal article on my LinkedIn profile. https://www.linkedin.com/in/jessecore/

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