The National Beer Wholesalers Association (NBWA) recently released its April Beer Purchasers’ Index (BPI), which 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. Got it?
According to the April BPI, there is “a slight deterioration in the beer industry outlook from the February and March data.” The April BPI overall dropped to 49, which, as we explained above, is just below the expansionary benchmark of 50. NBWA noted it was “a step back from the positive BPI readings we saw in the last two months. At the same time, the April At-Risk Inventory (ARI) increased to 55. This data suggests that beer purchasers are taking a more cautious approach to ordering, heading into the second quarter following continued economic uncertainty along with milder and wetter spring weather relative to March 2022.”
Looking across the segments for April:
- The index for imports continues to point to expanding volumes with a reading of 66, three points lower than the April 2022 reading of 70.
- The craft index at 33 continues to signal segment contraction and is below the April 2022 reading of 48.
- The premium lights index posted a reading of 43 lower than the April 2022 reading of 52.
- The premium regular segment index is at 32, slightly below the April 2022 reading of 38.
- The below premium segment reading at 49 is well above the April 2022 reading of 37 and continues a trend close to the expanding (above 50) territory.
- The FMB/seltzer reading fell to 24 in April, which is significantly lower than the April 2022 reading of 40.
As always, great info from the National Beer Wholesalers Association. They are an excellent trade organization you should check out right here.
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