No Heineken and Kingfisher Beers in Telangana! United Breweries Stops Supply

United Breweries Ltd (UB), the maker of Kingfisher and Heineken beers, has announced the suspension of its beer supply to the Telangana Beverages Corporation Ltd (TGBCL) due to unresolved pricing issues and unpaid dues. The company, a subsidiary of Heineken NV, stated in a regulatory filing that the decision comes after TGBCL failed to revise the basic price of UB's beers since the fiscal year 2019-20, leading to significant financial losses for the brewer.

The statement emphasized that the situation had become unviable, with large unpaid dues for previous beer deliveries further exacerbating the issue. As a result, UB has ceased supplying beer to TGBCL, which is responsible for the distribution of alcoholic beverages in the state.

Telangana has emerged as a major market for beer, with a recent survey by the National Institute of Public Finance and Policy (NIPFP) revealing that the state leads southern India in beer sales. Between April and October 2024, over 302 lakh beers were sold in Telangana, underlining the region’s significance in the beer market.

In December 2024 alone, Telangana's liquor consumption hit a staggering Rs 3,523.21 crore, with 3.55 million cases of Indian-made liquor and 4.25 million cases of beer sold. This marks a slight decline in beer sales from December 2023, which recorded 4.62 million cases, but still reflects a strong demand for alcoholic beverages in the state.

The suspension of beer supply by UB could have notable repercussions on the state's beer market, which is currently thriving, but the long-standing issues of pricing and unpaid dues have forced the company to take this drastic measure.