About the Beer Purchasers’ Index
By: Lester Jones, NBWA Vice President, Analytics and Chief Economist
The NBWA Beer Purchasers’ Index (BPI) is an informal monthly statistical release giving distributors a timely and reliable indicator of industry beer purchasing activity. BPI is the only forward-looking indicator for the industry to measure expected beer demand (one month forward) in the marketplace. Similar to the widely recognized Purchasing Managers’ Index, the BPI is a net-rising index and a leading indicator of industry performance based on survey responses from participating beer purchasers. The index surveys beer distributors’ purchases across different segments and compares them to that of previous years’ purchases. A reading greater than 50 indicates the segment is expanding, while a reading below 50 indicates the segment is contracting.
The Latest Data
Overall ordering levels in February recorded a BPI reading of 48, up from the January reading of 43. This remains in contraction territory and, coupled with the at-risk inventory measure at 48, indicates another month of cautious ordering as the beer industry begins an important year.
Notable segment results include the 12th straight month that imports have recorded a reading of 60 or higher. On the other end of the spectrum, craft and FMB/seltzer continue to see soft ordering; the segments have recorded sub-30 readings in 6 and 7 months respectively since the start of 2023.
Looking across the segments for February:
- The index for imports continues to point to expanding volumes with a February 2024 reading of 68, six points higher than the February 2023 reading of 62.
- The craft index of 22 for February 2024 continues to signal contraction in this segment and is significantly lower than the February 2023 reading of 34.
- The premium light index moved into expansionary territory at 52 for February 2024, higher than the February 2023 reading of 46.
- The premium regular index rose to 48 for February 2024, seven points above the February 2023 reading of 41.
- The below premium segment for February 2024 fell to 41 from 53 in February 2023.
- The FMB/seltzer reading for February 2024 of 28 is significantly lower than the February 2023 reading of 40.
- Finally, the cider segment posted a February 2024 reading of 30 compared to the same reading of 30 for February 2023.
Beer Distributors
Please sign up to participate and receive the first and only advance notice of expectations for increasing or decreasing sales. Complete the form below using your company’s primary beer purchaser’s contact information. For additional information, please email bpi@nbwa.org.
Beer Distributor Expectations Sign Up
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