Nearly 20% of United Breweries' sales come from Telangana, making it one of its top markets & decision to stop sales will likely dent its topline growth, it is learnt.

Maker of Kingfisher beer, United Breweries saw a 4% share drop following its suspension of beer supply to Telangana Beverages Corporation Limited

United Breweries Ltd suspends beer supply to Telangana due to operating losses, overdue payments, and lack of price revision.

Hyderabad: United Breweries, the maker of popular beer brands like Heineken and Kingfisher, announced on Wednesday that it has suspended the supply of beer to Telangana Beverages

United Breweries Limited (UBL) announced on Wednesday (January 8, 2024) that it has decided to halt beer supplies to the Telangana Beverages Corporation Limited (TGBCL) with immediate effect. The image is used for representative purposes only. | Photo Credit: Getty Images

Despite two years of efforts to address the issue, there has been no increase in the base prices of their products, leading to escalating losses that have rendered their operations in Telangana unviable.

Moreover, significant overdues remained unpaid by TGBCL for the past supply of beer by the company, it added without disclosing the details.

By Rishika Sadam, Nandan Mandayam and Indranil Sarkar HYDERABAD/BENGALURU (Reuters) -Heineken-owned United Breweries on Wednesday stopped supplying beer to Telangana in southern India, following the state's refusal to allow price rises,

Heineken NV’s Indian unit suspended supply of beer to the southern Indian state of Telangana, citing unprofitable prices and missed payments.