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 February BPI shows a potential shift towards a more positive outlook for the beer industry in 2023. It’s been ten months since the industry has seen an above-50 BPI and a below-50 ARI (at-risk inventory). For most of 2022, beer distributors were cautious with respect to their beer purchases. The industry recorded six out of twelve months with below 50 BPI index readings and above 50 ARI readings—indicating too much inventory in distributor warehouses. The February results reflect a BPI of 54 and an ARI of 46. After two disruptive years in 2021 and 2022, this is positive news for the beer industry.
Looking across the segments for February:
- The index for imports continues to point to expanding volumes, with a reading of 62 in February, lower than the February 2022 reading of 69.
- The craft index sits at 34, well below the February 2022 reading of 51 but showing some recovery from recent historical low readings.
- The premium lights index posted a reading of 46, in line with the February 2022 reading of 46.
- The premium regular segment index is 41, now above the February 2022 reading of 32.
- The below premium segment is well ahead of the February 2022 reading of 30 and is now 53, joining the import segment in expanding (above 50) territory.
- The FMB/seltzer segment also shows some signs of recovery, rising to 40 in February 2022 from 34 in February 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!