Hyderabad: United Breweries Ltd (UB), the producer of the popular Kingfisher and Heineken beers, suspended supply to Telangana over pending bills and the state govt’s decision not to raise retail prices.
The company, which operates as a subsidiary of Heineken NV, communicated its decision in a regulatory filing to Securities and Exchange Board of India (SEBI). It stated that it has stopped supply to the Telangana Beverages Corporation Ltd (TGBCL) with immediate effect.
Sources confirmed to TOI that if the stand-off is not resolved soon, the state would run out of UB beer in about nine days.
Beer prices were last revised in Telangana in 2019. Industry sources said this has resulted in huge losses for the companies.
Currently, the price for a 650 ml bottle of beer is Rs 150, while a 330 ml bottle is sold for around Rs 100. Beer companies have been advocating for a 20% hike in prices to make up for the substantial increase in the cost of production in the last six years.
Given that Telangana is among the largest beer markets in the country, UB’s decision is expected to have a considerable impact in the state, especially Hyderabad.
Kingfisher beer commands nearly 68% of the market share. Roughly 40 lakh cases of beer are sold in the state every month. In Dec 2024 alone, the state’s liquor consumption was valued at Rs 3,523 crore, with 3.55 lakh cases of Indian-made liquor and 4.25 lakh cases of beer sold.
In a separate statement, UB said it generated roughly Rs 4,500 crore for the state in revenues annually. It added that despite multiple representations by the Breweries Association of India, the state govt had not responded to requests to increase prices. “We urge the state govt to take swift action and work with us to safeguard livelihoods, restore financial sustainability and ensure the continued availability of our products,” the statement read.
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Won’t succumb to pressure: Min
Excise minister Jupally Krishna Rao Wednesday said the state govt would not yield to the “pressure tactics” of United Breweries. But he added in the same breath that beer prices would be raised as recommended by the price revision committee. “The company wanted a 33% price increase,” he said. “This would have burdened beer consumers. We have appointed a committee with a retired high court judge to scrutinise the price hike request. Even the BRS govt had not increased beer prices for five years.”
The company, which operates as a subsidiary of Heineken NV, communicated its decision in a regulatory filing to Securities and Exchange Board of India (SEBI). It stated that it has stopped supply to the Telangana Beverages Corporation Ltd (TGBCL) with immediate effect.
Sources confirmed to TOI that if the stand-off is not resolved soon, the state would run out of UB beer in about nine days.
Beer prices were last revised in Telangana in 2019. Industry sources said this has resulted in huge losses for the companies.
Currently, the price for a 650 ml bottle of beer is Rs 150, while a 330 ml bottle is sold for around Rs 100. Beer companies have been advocating for a 20% hike in prices to make up for the substantial increase in the cost of production in the last six years.
Given that Telangana is among the largest beer markets in the country, UB’s decision is expected to have a considerable impact in the state, especially Hyderabad.
Kingfisher beer commands nearly 68% of the market share. Roughly 40 lakh cases of beer are sold in the state every month. In Dec 2024 alone, the state’s liquor consumption was valued at Rs 3,523 crore, with 3.55 lakh cases of Indian-made liquor and 4.25 lakh cases of beer sold.
In a separate statement, UB said it generated roughly Rs 4,500 crore for the state in revenues annually. It added that despite multiple representations by the Breweries Association of India, the state govt had not responded to requests to increase prices. “We urge the state govt to take swift action and work with us to safeguard livelihoods, restore financial sustainability and ensure the continued availability of our products,” the statement read.
BOX
Won’t succumb to pressure: Min
Excise minister Jupally Krishna Rao Wednesday said the state govt would not yield to the “pressure tactics” of United Breweries. But he added in the same breath that beer prices would be raised as recommended by the price revision committee. “The company wanted a 33% price increase,” he said. “This would have burdened beer consumers. We have appointed a committee with a retired high court judge to scrutinise the price hike request. Even the BRS govt had not increased beer prices for five years.”
