Kingfisher Beer Stops Supply to Telangana Amid Ongoing Losses
United Breweries halts the supply of Kingfisher beers to Telangana due to significant operating losses. Despite efforts to increase prices, TGBCL’s failure to raise payments and delayed payments lead to unsustainable operations.
United Breweries, which makes Kingfisher Beer, has decided to stop selling its beers to the Telangana Beverages Corporation Ltd (TGBCL). This is because the company has been losing money. For the past two years, United Breweries tried to increase the price of their beers, but the TGBCL didn’t agree to pay more. As a result, the company has been losing money and can no longer afford to do business in Telangana.
Kingfisher, including popular brands like Kingfisher Strong and Kingfisher Ultra, makes up 60-70% of the total beer sales in Telangana. The problem started when the Telangana government increased the price of beer for consumers, but didn’t raise the amount they paid to manufacturers like United Breweries. On top of this, TGBCL has been delaying payments to the company, making the situation worse.
The company emphasised its responsibility to stakeholders, stating that selling beer at a loss is no longer viable. The Brewers Association of India (BAI) has also urged the government to address these challenges, but no resolution has been found. The Telangana Wine Dealers’ Association is now calling on the government to resolve the issue quickly to ensure beer supply is restored.
