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 continued downshift in distributor sentiment, as the BPI fell further into contraction territory to a reading of 31.
This follows a trend for the post-Covid marketplace with the past three Septembers all seeing contracting (<50) BPI readings. After a summer of heightened ordering levels, the combination of index readings for at-risk inventory (47) and BPI (31) reflects a more cautious outlook among distributors as they head into the fall months.
All segments were down year-over-year except for FMB/Seltzer, which rose 10 points to 38. The only segment in expansion territory (>50) is Imports, which marked its 52nd straight month with a reading above 50.
Looking across the segments for September:
- The index for imports continues to point to expanding volumes with a September 2024 reading of 53, nine points lower than September 2023 reading of 62.
- The craft index at 21 for September 2024 continues to signal contraction in this segment and is six points lower than the September 2023 reading at 27.
- The premium lights index fell to 38 for September 2024, nine points lower than the September 2023 reading at 47.
- The premium regular index fell to 30 for September 2024, ten points lower than the September 2023 reading at 40.
- The below premium segment for September 2024 at 35 marks a seven point decrease from the September 2023 reading of 42.
- The FMB/seltzer reading for September 2024 at 38 is ten points higher than the September 2023 reading at 28.
- Finally, the cider segment posted a September 2024 reading at 27 compared to 35 for September 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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