United Breweries resumes beer supply to Telangana Beverages Corporation

Hyderabad: United Breweries Limited (UBL) announced on January 20, 2025, that it will resume supplying beer to the Telangana Beverages Corporation Limited (TGBCL) with immediate effect.

In an official press release, the company stated, “This is further to our disclosure dated January 8, 2025. In compliance with Regulation 30 of the SEBI Listing Regulations, we wish to inform that the Company has decided to resume the supply of its beer to TGBCL with immediate effect.”

UBL explained that they have been in discussions with TGBCL, which have been constructive. The corporation has assured UBL that it will address issues related to pricing and outstanding payments within a specified timeframe.

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Until more information is available, UBL decided to restart supplies as an interim measure in the interest of consumers, workers, and stakeholders. The company added that it will continue to engage with TGBCL during this period.

Earlier, on January 8, UBL had announced the suspension of beer supplies to TGBCL due to sustained operating losses in the state. The company cited the lack of price revisions for its products, including Heineken and Kingfisher, since the 2019-2020 fiscal year. UBL had also pointed out significant overdue payments from TGBCL, making operations in Telangana unsustainable.

Despite these challenges, the company highlighted its commitment to the state, noting that it contributes over ₹24,500 crore annually to Telangana’s revenue. UBL had previously raised concerns through the Brewers Association of India (BAI) about the need for price hikes to keep pace with inflation, but no resolution was reached.

In its filing with the Bombay Stock Exchange (BSE), United Breweries stated that continuing operations in the state had become unfeasible due to the lack of price adjustments and outstanding dues. The company called on the Telangana government to address these issues to ensure the stability of the industry and the availability of its products.

𝐊𝐢𝐧𝐠𝐟𝐢𝐬𝐡𝐞𝐫 𝐁𝐞𝐞𝐫 𝐒𝐮𝐩𝐩𝐥𝐲 𝐑𝐞𝐬𝐮𝐦𝐞𝐬 𝐢𝐧 𝐓𝐞𝐥𝐚𝐧𝐠𝐚𝐧𝐚

United Breweries, the producer of Kingfisher beer, announced the immediate resumption of supplies in Telangana after constructive discussions with TGBCL. The company stated it received assurances… pic.twitter.com/uRPEO3yjVy

— Hyderabad Mail (@Hyderabad_Mail) January 20, 2025