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Kingfisher, Heineken supplies halted in Telangana amid United Breweries losses

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United Breweries Limited (UBL), maker of Heineken and Kingfisher, has suspended beer supplies to Telangana Beverages Corporation Ltd. (TGBCL) due to significant financial losses in the state. The company claims that lack of price revisions for its products since 2019-20 and substantial overdue payments from TGBCL have made operations unsustainable. Despite contributing significantly to Telangana's revenue, UBL has been forced to take this drastic measure due to the inability to cover operational costs. The company has appealed to the Telangana government to address the price issue and outstanding payments to ensure the continued availability of its products in the state.
United Breweries Halts Kingfisher, Heineken Supplies in Telangana

Hyderabad: United Breweries Limited (UBL), the maker of popular beer brands like Heineken and Kingfisher, announced on January 8, 2025, that it has decided to suspend supplies to the Telangana Beverages Corporation Ltd. (TGBCL) due to substantial and continued operating losses in the state.

The company cited the lack of price revision for its products over the past two years as a key factor in the decision. Despite repeated efforts, UBL stated that the base prices for its beers, including Heineken and Kingfisher, have not been increased since the 2019-2020 fiscal year.

This has led to escalating losses, making operations in Telangana unsustainable. “We have been selling beer at a loss, and the situation is no longer viable,” the company said in its statement.

The company also pointed to significant overdue payments for supplies made to TGBCL, further complicating the situation. The Brewers Association of India (BAI) has reportedly raised concerns with the state government about the industry’s challenges, particularly the need for price hikes to keep pace with inflation. However, no resolution has been reached so far.

United Breweries Limited (UBL) highlighted its commitment to its employees and customers, noting that it contributes over โ‚น24,500 crore annually to the state’s revenue. Despite the financial pressures, the company has ensured an uninterrupted supply of beer in the past, but the situation has now become untenable.

In its official filing to the BSE (Bombay Stock Exchange), United Breweries highlighted that two main factors prompted the decision to suspend supplies. They are TGBCL’s failure to revise the price of its beers, including Heineken and Kingfisher, since 2019-20 and the large unpaid dues from TGBCL for past supplies. The company stated that, given these conditions, continuing operations in the state had become unfeasible.

United Breweries Limited (UBL) urged the Telangana government to take swift action to address these issues in order to safeguard livelihoods and ensure the continued availability of its products in the state.