After five consecutive months of expansion, the National Beer Wholesalers Association (NBWA) Beer Purchasers’ Index (BPI) — which helps explain U.S. beer distributors’ monthly buying behavior — contracted in June. June 2019’s reading of 48 marked the lowest June reading since the NBWA started tracking wholesaler purchasing behavior in 2015.
June’s contraction also follows a May 2019 reading that was the highest reading of the last three years. Digging deeper into the data, the FMB/PAB reading of 68 was the only index to grow over June 2018 levels. While still expanding, imports (54 index) and craft (50 index) were both lower year-over-year readings.
According to the NBWA, readings above 50 indicate expansion, while those below 50 indicate contraction.
Quoted from the report at the NBWA site:
The Beer Purchasers’ Index took a downturn in June after posting positive results for the first five months of 2019. The total beer index fell from 62 in June 2018 to 48 in June 2019. This marks the lowest June reading since tracking began in 2015. The “At Risk Inventory” reading at 49 is the category’s first reading below 50 in 2019.
Looking across the segments:
- The index for imports took a step back, but remained in expansion territory, in June with an index reading of 54 compared to the June 2018 reading of 72.
- The craft index at 50 is full 10 points below June 2018 reading of 60.
- Premium lights, premium regulars and below premiums all saw declines in index readings relative to last year. All three segments continue to struggle with below 50 index readings.
- The flavored malt beverage/progressive adult beverage (FMB/PAB) segment was the only category that saw an increase over 2018 posting an index reading of 68 in June compared to 60 in June 2018.
- The cider segment fell to 43 from 46.