Overall beer purchasing intention expanded at wholesalers nationwide last month, according to the National Beer Wholesalers Association monthly Beer Purchasers’ Index (BPI).
“This month’s reading remains significantly above historical trends as increased packaged beer sales in the off-premise continue to ‘fill-in’ for lost on-premise and draft beer sales,” NBWA chief economist Leser Jones said. “Beer distributors continue to take an aggressive stance in their ordering to minimize out-of-stocks, compensate for lost draft beer volumes and continued on-premise closures.”
Total BPI for September 2020 was 80, a 26-point increase over September 2019’s reading of 54. A reading greater than 50 indicates expansion, while a reading of less than 50 indicates contraction.
All beer industry segments but one — cider — expanded in September 2020, and each posted higher readings last month compared to the same period last year.
Flavored malt beverages, which include hard seltzers, expanded with a reading of 91, the highest across all segments and a 12-point increase over its September 2019 reading of 79.
All three domestic beer segments posted higher readings compared to September 2019. Premium lights recorded the highest reading of the three at 75, more than double its 36 reading in September 2019. Premium regulars expanded with a reading of 60, more than double its September 2019 reading of 27. Below premium barely expanded with a reading of 50; the segment’s reading has declined every month since May.
Craft beer expanded with a reading of 55, higher than its September 2019 reading of 45. Imports also expanded with a reading of 65.
Cider contracted with a reading of 45, which was higher than its 34 reading in September 2019.
TTB Records: Steep Decline of Kegged Beer in April
Taxable keg production in April 2020 dwindled to 1.3% of its total in April 2019, according to a recent report from the U.S. Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) shared by Brewers Association chief economist Bart Watson on Twitter.
TTB April beer report is posted… and it's just insane.
Taxable keg production in April was 1.3% of 2019. pic.twitter.com/eaKaD2CpaW
— Bart Watson (@BrewersStats) October 1, 2020
In April 2020, domestic brewers produced 17,441 taxable kegs of beer, down from 1.29 million taxable kegs in Apirl 2019. Most of the country’s on-premise channel was shut down in April due to the COVID-19 pandemic. As Americans stockpiled to stay home, packaged beer increased to 13.4 million barrels in April 2020, up from 12.9 million barrels in April 2019.
Constellation Brands Names Nicholas I. Fink to its Board
Constellation Brands — importer of popular Mexican beers Corona, Modelo and Pacifico — has added Nicholas I. Fink, the CEO of Fortune Brands Home and Security, to its board of directors.
“Nick brings extensive beverage alcohol, international business, and legal experience, and has a proven track record of leveraging consumer insights to meet consumer needs in fast moving, highly regulated markets,” Constellation Brands executive board chair Rob Sands said in a press release. “Nick will serve as a tremendous asset for our board as we work to continue building industry-leading brands people love and remain focused on our proven strategy of long-term, profitable, and sustainable growth.”
Fortune Brands Home and Security is the parent company of MasterBrand Cabinets, Moen, Master Lock and Sentry Safe. Prior to his hiring in 2015, Fink served as chief strategy officer and president of Asia Pacific and South American operations for Beam Suntory Inc.
Constellation Brands’ board will expand from 12 members to 13 with the addition of Fink, whose term is slated to begin at the close of business on January 4, 2021.