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Beer distributors witness a decline in purchasing
US beer distributors have reported a decline in their purchasing outlook, according to a new statistical update.
The findings, which were collated by The National Beer Wholesalers Association (NBWA) in its Beer Purchasers Index (BPI), shows that beer buying across America has reduced year-on-year.
NBWA vice president, analytics and chief economist Lester Jones said: “The NBWA Beer Purchasers’ Index (BPI) is an informal monthly statistical release BPI is the only forward-looking indicator for the industry to measure expected beer demand (one month forward) in the marketplace. Similar to the widely recognised Purchasing Managers’ Index, the BPI is a net-rising index and a leading indicator of industry performance based on survey responses from participating beer purchasers.”
Jones explained that “the index surveys beer distributors’ purchases across different segments and compares them to that of previous years’ purchases”.
According to Jones: “A reading greater than 50 indicates the segment is expanding, while a reading below 50 indicates the segment is contracting.”
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Jones revealed that “overall BPI fell to 35 (a 14-point year-over-year shift) while the at-risk inventory measure rose to 53.”
He pointed out that, despite the tumble, “two segments recorded higher readings relative to February 2024: FMB/Seltzer (+8) and Below Premium (+2), which recorded its second-highest February reading to date.” He also noted that “the imports segment marked its 57th straight month in expansionary (>50) territory”.
“The index for imports continues to point to expanding volumes with a February 2025 reading of 55; however, that is 13-points lower than the February 2024 reading of 68,” he warned.
Added to this, Jones observed that “the craft index of 17 for February 2025 continues to signal contraction in this segment and is five-points lower than the February 2024 reading of 22.”
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