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
The October BPI reading of 42 is an 11-point jump from September, representing an increase in monthly ordering levels by America’s beer distributors.
However, a slight year-over-year BPI decrease (from 48 in October 2023) — coupled with an at-risk inventory reading of 50 — indicates a continued downshift in distributor sentiment to a more cautious outlook. This follows a trend for the post-Covid marketplace with the past three Octobers all seeing contracting (<50) BPI readings.
Notable segment results include the first expansionary (>50) Below Premium reading in October since the BPI launched in 2014. The FMB/Seltzer reading of 38 marked a 10 point year-over-year increase.
Looking across the segments for October:
- The index for imports continues to point to expanding volumes with an October 2024 reading of 56; however, this is 11 points lower than the October 2023 reading of 67
- The craft index at 25 for October 2024 continues to signal contraction in this segment and is six points lower than the October 2023 reading at 31
- The premium lights index fell to 41 for October 2024, 12 points lower than the October 2023 reading at 53
- The premium regular index fell to 34 for October 2024, 15 points lower than the October 2023 reading at 49
- The below premium segment for October 2024 at 54 is nine points higher than the October 2023 reading of 45
- The FMB/seltzer reading for October 2024 at 38 is 10 points higher than the October 2023 reading at 28
- Finally, the cider segment posted an October 2024 reading at 29 compared to 35 for October 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
Sign up to participate and receive the first and only advance notice of expectations for increasing or decreasing sales!