The identity comes from expanding the determinant $$\begin{vmatrix} a & b & c \\ c & a & b \\ b & c & a \\ \end{vmatrix}$$ in two ways.
The LHS comes from expanding the determinant by Sarrus' rule. The RHS comes from adding up all columns to the first, factoring (a+b+c), and then expanding the remaining determinant.
The derivation of the RHS is what I don't understand. I'm guessing that there is some elementary determinant operation at work that I'm unfamiliar with.