Wholesalers’ beer ordering entered expansion territory in November after four months of contraction, indicating “a more neutral stance for the industry,” according to the National Beer Wholesalers Association’s (NBWA) latest Beer Purchasers’ Index (BPI).
The BPI’s November reading for total beer was 51, a three-point month-over-month (MoM) increase from October’s reading of 48. A reading greater than 50 indicates expansion, while less than 50 indicates contraction.
November 2023’s reading reflects a 13-point year-over-year (YoY) increase from November 2022. The country’s “at-risk inventory,” beer in wholesalers’ warehouses within 30 days of going out of code, recorded a reading of 42.
“The beer industry is closing a turbulent year with signs of a more stable and predictable ordering environment, reflected in a 13-point YoY jump for the Beer Purchasers’ Index (BPI) to 51,” NBWA chief economist Lester Jones said in a press release. “Coupled with an At Risk Inventory measure of 42, indicating low inventory levels, the data suggests a neutral stance for the industry — a marked improvement over the contractionary reading from last year.”
Across the category, imports (69) and premium lights (53) were the only segments to venture into expansion territory. Imports (then 59) were the only segment in expansion in the November 2022 BPI. Premium lights recorded the second steepest increase YoY, adding 12 points from November 2022.
Premium regulars recorded an 18-point YoY increase and had the third-highest reading, which was still in contraction at 48.
Below premium was the only segment to decline YoY, with a reading of 39, down eight points from 47 in November 2022.
Cider’s reading increased two points, to 30. Flavored malt beverages (FMB) and hard seltzer increased nine points to 25. And craft beer increased one point YoY, to a reading of 26.