Following the highest Beer Purchasers’ Index (BPI) reading since 2021, the National Beer Wholesalers Association (NBWA) reports more increases in the BPI for May 2024, with “a steady build-up of distributor inventory as the industry prepares for summer.”
The BPI is the only 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.
BPI May 2024 remained deep in expansion territory at 63, an 11-point increase from May 2023 and identical to last month’s reading. The combined readings of expansionary BPI and contracting at-risk inventory — which remained below the benchmark (50) at 47, down from 61 in May 2023 — indicate a positive outlook for the warm weather selling season.
Five segments recorded positive year-over-year growth in BPI May 2024, led by 16- and 10-point jumps for FMB/Seltzer and Premium Regular, respectively. However, the Craft segment continues to struggle, seeing its 27th straight month of contraction.
BPI May 2024
The BPI for imports continues to point to expanding volumes with an May 2024 reading of 72, three points lower than the May 2023 reading of 75.
The craft index at 32 for May 2024 continues to signal contraction in this segment; the current reading is seven points lower than the May 2023 reading at 39.
The premium lights BPI remains in expansionary territory at 54 for May 2024, five points higher than the May 2023 reading of 49.
The premium regular BPI remains in expansionary territory at 53 for May 2024, a 10-point increase from the May 2023 reading of 43.
The below premium segment for May 2024 reading of 50 is exactly the same as May 2023.
The FMB/seltzer reading for May 2024 of 42 is significantly higher than the May 2023 reading at 26.
Finally, the cider segment posted an May 2024 reading of 31 compared to 29 for May 2023.
Rick Boyd says
Nice to see Lone Pine get the inclusion in the photo