Kingfisher producer halts beer supply in Telangana

The UB Group produces beer brands including Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Amstel, Heineken, and Heineken Silver.

Hyderabad: The maker of the Kingfisher beers, the United Breweries Group, on Wednesday, January 8, has decided to suspend the supply of its beers to the state of Telangana, the company said in a statement, over pricing disputes with the Telangana Beverages Corporation Limited (TGBCL).

The United Breweries Group produces and supplies beer brands including the Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Amstel, Heineken, and Heineken Silver, among others.

The supply of these beers will halted in Telangana with the new decision from the UB Group. The brewing company said that the decision to suspend the supply will come into effect immediately.

According to the company, the decision came in the background of two reasons.

The TGBCL has not revised the base prices of the beers sold in Telangana by the UB Group since 2019, resulting in a huge loss for the company.

The TGBCL also has significant payment overdues with the company, over the beers sold in Telangana in the past. The situation has come to a stage where the continued supply of beers has become unviable for the UB Group.

United Breweries is India’s largest beer producer, with over 40 percent of the market share in the industry.

Also Read
Brewers body urges Telangana govt to approve price hike for alcholic beer

Brewers urge Telangana govt to approve price hike

Earlier in November 2024, The Brewers Association of India (BAI) representing major beer producers like United Breweries, AB InBev, and Carlsberg urged the Telangana government to approve price increases for alcoholic beverages to offset inflation.

In a letter to chief minister A Revanth Reddy, BAI director general Vinod Giri noted that the current prices allowed for beer suppliers are based on 2019 cost submissions despite production costs rising since then. He stressed that without an adjustment in prices operations in Telangana have become commercially unfeasible and future investments are no longer viable.

While acknowledging that the association cannot speak for individual companies, Vinod Giri proposed a 35 to 40 percent average price increase to reflect the higher production costs. He also pointed out that beer prices in Telangana are currently 30-50 percent lower than in neighbouring states which is leading to losses for suppliers.