The National Beer Wholesalers Association’s (NBWA) Beer Purchasers’ Index “recorded its lowest index reading” in December 2022, with a reading of 30, while the index for inventory “at-risk” of going out of code hit 51, which the trade group said “makes a very pessimistic outlook for January 2023.”
“Following the BPI data, the industry’s narrative has not changed much since June 2022,” the NBWA said. “The purchasing behavior of the industry is best described as slow and cautious in the face of changing retailer and consumer demand, which is an appropriate outlook and strategy for distributors heading into 2023.”
The BPI is a survey of beer distributors’ purchasing behavior across all beer category segments and compares them to previous years. A reading below 50 indicates contraction, while a reading greater than 50 marks expansion.
Imports was the only segment to expand in December 2022, with a reading of 54. However, the December 2022 reading was 19 points lower than December 2021’s reading of 74. The NBWA noted that although imports have remained in expansion territory, the “segment has consistently trended lower month over month in 2022.”
The craft reading for December 2022 hit its lowest point since 2015, with a reading of 24. Craft orders have fallen since December 202,1 when the segment was in expansion territory with a 60 reading.
The below premium segment’s December 2022 reading (42) marked an improvement over December 2021 (38) but remained in contraction. The NBWA added that below premium is “the only segment to report a higher reading compared to the year 2021.”
Other segments contracting in December 2022 include premium lights (31), premium regular (28), FMB/hard seltzer (26), and cider (26).
