Indian state rations Kingfisher beer amid price dispute with United Breweries 

INDIA – Telangana, India’s largest beer-consuming state, has begun rationing supplies of Kingfisher beer following the suspension of sales by Heineken-controlled United Breweries (UB) due to a pricing dispute.  

The state, which consumes approximately 500 million liters of beer annually, accounts for 15-20% of UB’s sales by volume. 

Alcohol sales in Telangana are regulated by the state government, which purchases products and supplies them to retail outlets.  

In response to shortages, officials have implemented rationing measures to prevent hoarding, liquor store owners in Hyderabad confirmed. 

“Today we received a notification from our depot that there is no Kingfisher beer stock anymore,” said Madhusudhan Rao, a liquor store owner in the city. 

United Breweries halted sales to Telangana, citing delayed payments and the state’s failure to approve price revisions since 2019/20, which the company claims have hurt its finances. UB revealed that Telangana Beverages Corporation Limited (TGBCL), the state’s alcohol distributor, owes the company Rs 658.95 crore for past supplies. 

According to UB, nearly 70 percent of the retail price of beer in Telangana comprises state taxes and duties, while the company’s manufacturing and supply costs account for only 16 percent. The lack of price revisions for two years has resulted in escalating losses for UB, forcing the company to take drastic action. 

Telangana is not the only state embroiled in disputes with alcohol companies. Global beverage firms, including Diageo, Pernod Ricard, and Carlsberg, have also demanded payment of dues amounting to $466 million (approximately Rs 4,060 crore) from the state. 

India’s beer market, currently valued at around Rs 38,000 crore (US$4.38M), is projected to grow to over Rs 62,000 crore (US$7.15M) by 2028, according to the IMARC Group. 

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