For the first time since April 2020, the National Beer Wholesalers Association Beer Purchasers’ Index for January came in below 50. The reading of 46, combined with an at-risk inventory reading of 58 is reminiscent of when the industry frequently experienced excess inventory, NBWA said.
The components that make up the aggregate BPI this January are also more like pre-pandemic readings, NBWA said. Most importantly, the dramatic drop in the FMB/seltzer BPI continues, falling to 39 in January 2022 from 90 in January 2021. Meanwhile, crafts, premium lights, regular premium and below premium segments all fell below 50 for the month. Only the import segment posted a solid expansionary index this January.
The “at-risk” inventory measures rose above 50 for the first time since April of 2020 signalling that supply constraints in the beer industry are beginning to alleviate. It is important to take note of the upward trend in “at-risk” inventories as supply-side challenges start to resolve and inventories continue to build, NBWA said.