Research Update

 

Good afternoon,

Linked below is the Import Export Report for August 2018.

Here are a few key findings:

  • Imported beer volume declined slightly in August, following several months of very strong growth brought about largely by appreciation of the dollar vs. other major currencies.
  • The dollar continues to perform well, but there are limits to the extent that import suppliers and distributors can take advantage of the exchange rate by increasing inventory levels in excess of current needs.
  • As such, this month’s decline in import volumes, which effected European brands most dramatically, indicates a short-run inventory surplus.  It does not indicate any meaningful change in import demand fundamentals.
  • The dollar’s value has appreciated by more than 8% vs. the euro since the start of 2018. The dollar’s appreciation against the peso has been less dramatic than it has been against the euro.  As such, volume growth and inventory levels on Mexican imports have been more consistent throughout the year thus far.

If you have any questions, please reach out.

http://www.beerinstitute.org/wp-content/uploads/2018/10/Import-Export-August-2018.pdf

Cheers,

Michael Uhrich
Chief Economist

 

 

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