Overall beer ordering contracted again in December after spending one month in expansion territory, according to the National Beer Wholesalers Association’s (NBWA) Beer Purchasers’ Index (BPI).
Although total beer recorded a BPI reading of 44 in December 2023, indicating contraction, that number still represents a 14-point increase from December 2022. A reading of 50 or higher means that the category or a segment is in expansion; below 50 indicates contraction.
“The U.S. beer industry closed out 2023 with its third straight month of improved overall ordering trends compared to 2022,” NBWA chief economist Lester Jones wrote in a press release.
“At-risk inventory” – the amount of beer in distributor warehouses within 30 days of its expiration date – remained in contraction at 47, “a somewhat cautious outlook heading into 2024,” Jones wrote.
The beer category and all but two segments remained in contraction territory in December 2023, but many recorded year-over-year (YoY) increases.
“December is the seventh straight month in which at least five of the seven measured segments saw increased ordering compared to 2022, with three segments (imports, premium lights and premium regular) recording double-digit growth,” Jones wrote.
With a reading of 68, imports remained the strongest segment in the category, and increased 14 points YoY.
Premium lights had the second highest reading in December 2023 at 50, a 19-point YoY increase, followed by premium regulars (48, a 20-point YoY increase).
Flavored malt beverages and hard seltzers remained in contraction at 35, but increased nine points YoY.
Cider recorded a reading of 32, a six-point YoY increase. Craft also increased six points YoY, to a reading of 30.
Below premiums were the only segment to decline YoY, with a reading of 27, down from 42 in December 2022.