Wholesaler purchasing expanded for the first time in 2024, with a March Beer Purchasers’ Index (BPI) reading of 51, the National Beer Wholesalers Association (NBWA) reported.
“After a quiet start to the beer industry’s year, March saw distributor ordering levels kick into gear as the Beer Purchasers’ Index rose to 53 – the first reading above the expansionary benchmark (50) in 2024 and the highest March BPI reading since 2021,” NBWA chief economist Lester Jones wrote.
In February, the BPI posted a reading of 48, which marked a five-point improvement over January but still in contraction. A reading of 50 or more indicates the category or a segment is expanding, while 49 or lower indicates contraction.
At-risk inventory – beer in wholesaler warehouses within 30 days of going out-of-code – recorded its fifth consecutive month in contraction, with a reading of 47.
“The combination of readings for the BPI (53) and at-risk inventory (47) measures, along with increased YoY [year-over-year] ordering volumes in six of seven measured segments, points to a significant shift toward a more positive outlook for the beer industry in 2024,” Jones wrote.
In addition to total beer, two segments were also in expansion territory: imports (66, +4 from March 2023) and premium lights (53, +6 from March 2023).
Almost all segments posted YoY gains. Although still in contraction, flavored malt beverages (FMBs) and hard seltzers, measured together, recorded the strongest YoY increase, gaining 13 points from March 2023, to a reading of 34.
Premium regulars increased 10 points, to 47. Cider gained four points, clocking a reading of 35 for March 2024.
Craft beer gained eight points, to a reading of 36, “its highest non-summer season (May-August) ordering levels since April 2022,” Jones noted.
Only below premiums declined YoY, dipping six points to 47.