After the last few months of alarm bells for the beer category, the Beer Purchasers’ Index (BPI) showed some signs of strength for craft and overall beer in June 2023.
The BPI, produced by the National Beer Wholesalers Association (NBWA), is a forward-looking indicator for distributors to measure expected beer demand. The index surveys beer distributors’ purchases across different segments and compares them to previous years. A reading greater than 50 indicates the segment is expanding, while a reading below 50 indicates the segment is contracting.
The June BPI rose above the benchmark (50) to 54 while the At Risk Inventory (ARI) measure also remained slightly above the benchmark (50) at 51. Looking across the past nine years of the survey, the current BPI of 54 does not match the past survey average of 60 for June; however, the June index does point to a few signs of strength in the beer market as purchasing activity increased for five of the seven measured segments.
The index for imports continues to point to expanding volumes with a reading of 68, seven points higher than the June 2022 reading of 61.
The craft index at 38 continues to signal contraction but is slightly above the June 2022 reading of 33.
The premium lights index posted a reading of 52, significantly higher than the June 2022 reading of 44.
The premium regular segment index at 53 is also significantly above the June 2022 reading of 36.
The below premium segment reading at 53 is also above the June 2022 reading of 42 and continues a trend in expanding (above 50) territory.
The FMB/seltzer reading fell to 31 in June, lower than the June 2022 reading of 36.
Finally, the cider segment posted a June reading at 28 compared to 30 in June 2022.
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