Beer Institute

Good afternoon,

Linked below is the January 2018 Import-Export report.

Below find a few key points:

Imported beer volume increased by 6.4% in January and is now up 3% over the last 12 months.
While strong compared to recent performance among domestic shipments, +3% is among the softest 12 month import trends over the last three years.
This relative softness is related to currency market fluctuations, as depreciation of the U.S. dollar has diminished America’s power to purchase foreign goods, including beer.
January 2017 marked the all-time peak value of the U.S. dollar against the Mexican peso. As of January 2018, the dollar had depreciated against the Peso by 11.6%, and its downward trend continued into February.
Although not an all-time peak, the dollar hit a 15-year high against the euro around the same time. In January, the dollar’s value was down 12.8% versus the euro.
In general, currency futures markets currently reflect an expectation that the dollar will continue to depreciate versus other major currencies over the next several months.
While depreciation of the dollar negatively influences demand for U.S. imports, it has the opposite effect on exports, which is reflected in recent performance among beer exports – up about 9% in January and over the last 12 months.

If you have any questions, please contact me at either 202-737-2337 or muhrich@beerinstitute.org.