United Breweries, the maker of Kingfisher Beer, has stopped supplying its beers to the Telangana Beverages Corporation Ltd (TGBCL). The company made this decision because it has been losing money while doing business in Telangana. For the past two years, United Breweries tried to increase the price of its beers, but TGBCL refused to pay more. This has left the company unable to cover its costs.
Kingfisher Beer, including popular varieties like Kingfisher Strong and Kingfisher Ultra, accounts for 60-70% of beer sales in Telangana. The issue began when the Telangana government raised the price of beer for consumers but did not increase the payment to beer manufacturers like United Breweries. To make matters worse, TGBCL has also been delaying payments to the company, worsening the financial strain.
United Breweries has stated that it has a responsibility to its stakeholders and can no longer sell beer at a loss. Meanwhile, the Brewers Association of India (BAI) has urged the Telangana government to address these problems, but no solution has been reached so far. The Telangana Wine Dealers’ Association is now pushing the government to act quickly to resolve the issue and bring beer supplies back to normal.
