A survey that asks beer distributors about ordering activity shows that wholesalers are increasing orders.
The Beer Purchasers’ Index hit 58.9, up from 49.4 in March. The reading marked the first time the index broke 50 in four months, and it was higher than the April 2016 reading of 56.6.
The Beer Purchasers’ Index, conducted by the National Beer Wholesalers Association, asks distributors if they ordered more beer, about the same or less beer in the current month. Any reading above 50 indicates expansion and any reading below 50 shows contraction.
Reporting on the index, Beer Marketer’s Insights observed:
“[I]mports, crafts and FMBs at 67.6, 62.3 and 51.5 respectively in Apr, tho each lower than last Apr. Craft index fell almost 15 pts. Premium light index flattish at 45, premium regular up 5 pts, but still only 33.3. And below premium picked up almost 5 pts at 31.9.”
In a note accompanying the index, NBWA Chief Economist Lester Jones said future surveys should be positive.
“Putting negative volume trends from Q1 behind us, and inventories moving into line with sales, the BPI should see some recovery with May and June surveys,” he wrote.