Following two months of positive trends, total beer category ordering by distributors ticked downward in this month’s Beer Purchasers’ Index (BPI), the National Beer Wholesalers Association (NBWA) reported.
“The April BPI dropped to 49, which is just below the expansionary benchmark of 50 and represents a step back from the positive BPI readings we saw the last two months,” the NBWA wrote.
Each month, NBWA chief economist Lester Jones surveys middle-tier purchasers on their buying habits and intentions. A reading of 50 or higher indicates ordering of a segment is expanding, but a reading lower than 50 indicates contraction.
The BPI also asks wholesalers about the amount of beer in their warehouses within one month of its out-of-code date to generate the at-risk inventory (ARI) index. In April 2023, the ARI was 55, an increase of +4 points from March 2023.
“This data suggests that beer purchasers are taking a more cautious approach to ordering heading into the second quarter following continued economic uncertainty along with milder and wetter spring weather relative to March 2022,” the NBWA wrote.
Imports were the only segment in expansion territory with a reading of 66, down -4 points from April 2022.
Below premiums were close to expanding with a reading of 49, an +8-point increase year-over-year (YoY).
Premium lights recorded the third-highest reading at 43, though still in contraction territory and a decline of -9 points from March 2022.
After below premiums, cider was the only other segment to record a YoY increase. Cider’s reading increased +3 points to 36.
Craft recorded the second largest YoY decline, dropping -15 points to a reading of 33. However, craft’s reading increased +5 points from March 2023.
Premium regulars remained in contraction territory with a reading of 32, -6 points below the segment’s March 2022 reading of 38.
Flavored malt beverages (FMBs) and hard seltzers recorded the steepest YoY decline, dropping -16 points to 24, which was the lowest index of all segments this month.