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 March BPI shows a continued shift towards a more predictable environment for the beer industry in 2023. While the March BPI/ARI ratio of 50/51 represents a slight regression from February’s 54/46, a fully neutral (50/50) ratio can indicate more predictable ordering and inventory levels. Following several tumultuous and unpredictable years, a stable and balanced environment is welcome news for the beer industry.
Looking across the segments for March:
- The index for imports continues to point to expanding volumes with a reading of 62, five points lower than the March 2022 reading of 67.
- The craft index at 28 continues to signal segment contraction and is below the March 2022 reading of 47.
- The premium lights index posted a reading of 47 which is slightly lower than the March 2022 reading of 51.
- The premium regular segment index is at 37, which closely matches the March 2022 reading of 38.
- The below premium segment reading at 53 is well above the March 2022 reading of 41 and continues a trend into expanding (above 50) territory.
- The FMB/seltzer reading slide to 21 in March and which is significantly lower than the March 2022 reading of 42.
- Finally, the cider segment posted a March reading at 31 compared to 36 in March 2022.
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!