The National Beer Wholesalers Association’s (NBWA) Beer Purchasers’ Index improved slightly in January to 38, after the record low reading reported in December.
The NBWA surveys beer distributors’ purchases to calculate the BPI. A reading greater than 50 indicates a category or segment is expanding, while a reading below 50 indicates contraction.
December had a reading of 30, giving the NBWA a “very pessimistic outlook for January 2023.” While the reading of 38 is an improvement, it is still below the January 2022 reading of 46. January also marks the eighth consecutive month the BPI has been lower than 50.
Inventory “at-risk” of going out of code had a reading of 52, indicating relatively little change since December’s reading of 51. The reading is a “slight improvement” over January 2022, when “at-risk” inventory posted a reading of 58.
Imports (52) was the only segment with a reading greater than 50. While the index means the segment is still “expanding volumes,” imports have “consistently trended lower month over month, with fewer respondents reporting they are ordering more,” NBWA chief economist Lester Jones wrote in the report. The reading is also 19 points below the segment’s January 2022 reading of 71.
Below premiums (48) was once again “the only segment to report a higher reading compared to 2021 and 2022,” improving on the segment’s January 2022 reading of 38. The index is also a slight improvement over December, when below premiums posted a reading of 42.
Demand for the hard seltzer/flavored malt beverages segment continued to decline, with its index reading falling to 18, after a reading of 26 in December. It is also significantly below the segment’s January 2022 reading of 39.
Craft has “continued to reach new lows since 2015,” and posted a reading of 21. The segment recorded a reading of 30 in January 2022.
Premium lights posted a reading of 37 (compared to 46 in January 2022), while premium regulars posted a reading of 27 (compared to 30 in January 2022). And cider recorded a reading of 26, compared to its January 2022 reading of 28.