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
This month’s results show a downshift in distributor sentiment to a more cautious outlook. The current BPI reading of 40 breaks a five month streak of 50 or higher BPI readings that started in March 2024.
However, the current August Beer Purchasers’ Index (BPI) reading of 40 follows a trend for the post-Covid marketplace; the past three years have all seen August BPI readings in the 40s. The combination of index readings for the at-risk inventory (48) and BPI (40) indicate a cautious outlook for the beer industry heading into the end of summer.
Looking across the segments for August:
- The index for imports continues to point to expanding volumes with an August 2024 reading of 55, six points lower than August 2023 reading of 61.
- The craft index at 23 for August 2024 continues to signal contraction in this segment and is twelve points lower than the August 2023 reading at 35.
- The premium lights index fell to 38 for August 2024, ten points lower than August 2023 reading at 48.
- The premium regular index fell to 39 for August 2024, one point lower than the August 2023 reading at 40.
- The below premium segment for August 2024 at 45 is slightly higher than August 2023 reading of 43.
- The FMB/seltzer reading for August 2024 at 36 is nine points higher than the August 2023 reading at 27.
- Finally, the cider segment posted an August 2024 reading at 30 compared to 29 for August 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!