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CASTLE MALTING NEWS in partnership with www.e-malt.com Korean
05 March, 2024



Brewing news USA: Demand for craft beer slow from distributors, report says

Craft as a category will have its challenges in 2024 — especially in packaged formats on the store shelf and on tap at third-party venues. The Brewers Association, the not-for-profit trade association dedicated to small American craft brewers by its definition, released a recap of the last 12 months in the indie brewing sector, noting craft beer production was down in 2023 (the first time outside of that unique 2020 COVID economy that independent brewers had seen such a decline), Craft Brewing Business reported on March 4.

Also, the National Beer Wholesalers Association (NBWA) continues to note craft demand from distributors continues to sink, as noted in the Beer Purchasers’ Index (BPI) for February 2024. Overall ordering levels in February recorded a BPI reading of 48, up from the January reading of 43. This remains in contraction territory and, coupled with the at-risk inventory measure at 48, indicates another month of cautious ordering as the beer industry begins an important year. The BPI is a forward-looking indicator measuring expected demand from beer distributors — one month forward. A reading greater than 50 indicates the segment is expanding, while a reading below 50 indicates the segment is contracting.

Notable segment results include the 12th straight month that imports have recorded a reading of 60 or higher. On the other end of the spectrum, craft and FMB/seltzer continue to see soft ordering; the segments have recorded sub-30 readings in six and seven months respectively since the start of 2023.

Looking across the segments for February:

• The index for imports continues to point to expanding volumes with a February 2024 reading of 68, six points higher than the February 2023 reading of 62.
• The craft index of 22 for February 2024 continues to signal contraction in this segment and is significantly lower than the February 2023 reading of 34.
• The premium light index moved into expansionary territory at 52 for February 2024, higher than the February 2023 reading of 46.
• The premium regular index rose to 48 for February 2024, seven points above the February 2023 reading of 41.
• The below premium segment for February 2024 fell to 41 from 53 in February 2023.
• The FMB/seltzer reading for February 2024 of 28 is significantly lower than the February 2023 reading of 40.
• Finally, the cider segment posted a February 2024 reading of 30 compared to the same reading of 30 for February 2023.





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