May recorded the largest year-over-year (YoY) decline in domestic tax paids so far this year, decreasing -7.7%, to 13.3 million barrels, according to the Beer Institute (BI).
The BI’s monthly report uses numbers from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
Domestic tax paids have declined YoY four of the five months reported by the BI so far in 2023, with the exception of February, which increased +1% YoY. May’s decline was nearly double the previously reported -4% YoY decline in April.
Year-to-date through May, domestic tax paids are down -4.4%, to just over 62.86 million barrels, a decrease of nearly 3 million barrels versus the same five-month period in 2022.
As a reminder, these numbers are estimates and could change slightly as more data comes in.
Imports Back in the Black after ‘Several Months of Fluctuating Trends’
Imported beer shipments increased +5.2% YoY in May, to 3.7 million barrels, returning the data set to the black after a -11% YoY decline in April.
The increase follows “several months of fluctuating trends,” BI VP of research Danelle Kosmal wrote.
Mexican imported beer was “nearly the sole driver of growth” for the segment, with an additional 350,000 barrels in the month versus May 2022, a +11.9% increase YoY. Mexican imports were also credited for the April decline, recording a -9.2% decline YoY versus April 2022.
The rollercoaster for Mexican and total imports began in September 2022. Because of this, a rolling 12-month view of Mexican imports is a “more accurate view” of trends, Kosmal wrote. Over that 12-month rolling period (May 2022 to May 2023), Mexican imports increased +2% versus the 12 months prior.
“While this growth is minimal compared to the double-digit growth the segment experienced throughout most of 2022, it is [a] stronger performance than most beverage-alcohol categories or segments,” Kosmal wrote. “As a comparison, for 12 months through May 2023, the spirits category is down -0.8% in depletions and down -3.7% when excluding spirits-based canned cocktails, according to SipSource data.
“Given the downward trends of overall alcohol volume, the continued modest growth of Mexican imported beer remains extremely promising,” she continued.
The BI also released its May state shipments report. Look out for details on that report on Brewbound soon.
The BI’s next round of economic reports, which will analyze data from June, is scheduled to be released August 9.
