The National Beer Wholesalers Association (NBWA) has released the Beer Purchasers’ Index (BPI) for August 2020 as beer distributors continue to take an aggressive stance in their ordering to minimize out-of-stocks and compensate for lost draft beer volumes and on-premise closures. BPI is the only forward-looking indicator for distributors to measure expected beer demand. The index surveys beer distributors’ purchases across different segments and compares them to previous years. A reading greater than 50 indicates the segment is expanding, while a reading below 50 indicates the segment is contracting.
The total Beer Purchasers’ Index for August 2020 rose to 74 from 58 for August 2019.
The “at-risk inventory” index for total beer (inventory at risk of going out-of-code in the next 30 days) continues to record all-time low readings at 22 for August 2020 from 46 in August 2019.
NBWA Chief Economist Lester Jones explained, “The August 2020 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.”
Additional information on the BPI for individual product sectors is here.
