Total beer had a “break in the pattern” this month, contracting with a reading of 46 in June’s Beer Purchasers’ Index (BPI), according to the National Beer Wholesalers Association (NBWA).
The report follows May’s reading of 53, which the NBWA said could be a “good sign” for summer sales performance.
A BPI reading greater than 50 indicates a category or segment is expanding, while a reading below 50 indicates contraction.
“Continued inflationary pressures, extreme heat, rising interest rates and recession fears, coupled with slower-than-expected sales in May, bring the industry to a pause after five months of positive ordering trends,” the NBWA wrote. “When looking at the comparison month of June 2021, it is worth noting that the industry was experiencing an extraordinary period of recovery for on-premise retail. The June 2022 results show a shift to a slightly more pessimistic sentiment compared to the previous two quarters of this year.”
The “at risk” inventory (inventory at-risk of being out of code) reading for June was 47, which the NBWA said was a more “positival signal for the industry, as it manages through unprecedented heat waves, price increases, uncertainty around consumer demand and the general economy.”
Imports were the only beer segment to expand in the month once again, with a reading of 61. However, the segment was still 10 points below its June 2021 reading of 71. Craft took one of the biggest hits with a reading of 33 (compared to 53 in June 2021), as the segment “continues to struggle” and “on-premise retailers are not rebuilding draft beer with the same number of tap handles as before.”
FMB/hard seltzer also contracted again, with a reading of 36 (versus 69 in 2021). The cider segment contracted as well, with a reading of 30 (versus 40 in 2021).
Premium lights posted the second highest reading after imports. While the segment’s 44 reading was below its June 2021 reading of 59, the number is “more in line with recent 2022 trends” according to the NBWA.
Below premium contracted with a reading of 42. Still, the segment was the only beer segment to record a year-over-year increase, with a June 2021 reading of 35.
Premium regular was just slightly below its 2021 reading of 40, with a reading of 36.