NBWA’s April Beer Purchasers’ Index hits highest mark since 2021

The National Beer Wholesalers Association‘s Beer Purchasers’ Index (BPI) for April 2024 indicates a robust start to the warm weather season for America’s beer distributors, with the index soaring to 62 — the highest level since December 2021 and the first reading above 60 in over two years. This significant uptick from last month’s index of 53 signals a strong expansion in beer ordering levels, heralding optimistic forecasts for the industry’s near-term future. This is the second month above 50. Even the craft beer demand is inching up, although numbers still indicate the sector is contracting.

The BPI is a forward-looking indicator measuring expected demand from beer distributors — one month forward. A reading greater than 50 indicates the segment is expanding, while a reading below 50 indicates the segment is contracting.

All seven measured segments recorded YoY growth, led by 27- and 20-point jumps for Premium Regular and Premium Lights, respectively. This is the first time since March 2021 that readings for the BPI and all segments increased in the same month. Strong segment growth (including four expansionary readings) and contracting amounts of at-risk inventory (46, down from 47 in March) reflect an optimistic ordering environment as the industry heads into summer.

Looking across the segments for April:

• The index for imports continues to point to expanding volumes with an April 2024 reading of 73, seven points higher than April 2023 reading of 66.
• The craft index at 36 for April 2024 continues to signal contraction in this segment; however, the current reading is three points higher than the April 2023 reading of 33.
• The premium lights index remains in expansionary territory at 63 for April 2024, 20 points higher than the April 2023 reading at 43.
• The premium regular index moved into expansionary territory for April 2024, with a substantial 27-point gain above the April 2023 reading of 32.
• The below premium segment for April 2024 rose to 53 from 49 in April 2023.
• The FMB/seltzer reading for April 2024 at 40 is significantly higher than the April 2023 reading of 24.
• Finally, the cider segment posted an April 2024 reading of 39 compared to 36 for April 2023.