Kingfisher and Heineken beer will no longer be available in Telangana as UB suspends beer supplies with immediate effect

The company attributed this move to severe operating losses

Kingfisher and Heineken beer will no longer be available in Telangana, as United Breweries Limited (UBL) has decided to halt beer supplies to the Telangana Beverages Corporation Limited (TGBCL) with immediate effect. The company attributed this move to severe operating losses, describing it as a critical step to maintain financial sustainability amidst the growing challenges faced by the brewing industry in the State.

In a media statement issued on Wednesday (January 8, 2025) UBL highlighted the unviable nature of its operations due to stagnant base prices for its products over the past two years. The absence of price revisions, coupled with rising costs, has led to significant financial strain on the company. “Despite our continuous efforts, there has been no increase in base prices, resulting in escalating losses. With each beer sold at a loss, continuing our operations in the State has become unsustainable,” the company stated.

UBL also pointed to substantial overdue payments from TGBCL as a complicating factor. The Brewers Association of India (BAI) has urged the Telangana government to address industry-wide concerns, including inflation-driven cost escalations. But no resolution has been reached, the company said.

The company expressed its commitment to supporting its employees during this period and acknowledged their dedication. ”Despite financial pressures, UBL has maintained an uninterrupted supply of beer, contributing over ₹4,500 crore annually to the State’s revenue. However, the current scenario has left the company with no choice but to halt supplies,” as per the statement.

UBL has appealed to the State government to take immediate steps to address the situation. “We urge the government to work with us to safeguard livelihoods, restore financial sustainability, and ensure the continued availability of our products,” the spokesperson said.

Published - January 08, 2025 05:36 pm IST