- By Deeksha Gour
- Mon, 13 Jan 2025 07:01 PM (IST)
- Source:JND
Hyderabad News: Telangana, India's largest beer-consuming state, is currently rationing supplies of Kingfisher beer, a popular brand produced by United Breweries, which is controlled by Heineken. This action comes after United Breweries suspended sales in the state due to a dispute over pricing.
In India, the world’s eighth-largest alcohol market by volume, each state regulates alcohol pricing, which contributes to their tax income. The state government purchases alcohol and distributes it to retailers, but with recent tensions, officials in Telangana are rationing supplies to prevent hoarding and manage shortages, according to three local retailers.
ALSO READ: Pongal School Holiday 2025: Tamil Nadu, Telangana Schools Closed On These Dates; Check Details
The NDTV report quoted Madhusudhan Rao, a liquor store owner in Hyderabad, who shared his experience, stating as, “Today we got a notification from our depot that there is no Kingfisher beer stock anymore.”
United Breweries halted sales to Telangana last week, citing financial issues stemming from delayed payments and a lack of government approval for price increases since the 2019/20 fiscal year. The company’s decision reflects ongoing strain in India's $45 billion alcohol industry, where major players like Diageo, Pernod Ricard, AB InBev and Carlsberg are collectively seeking around $466 million in unpaid dues.
According to the NDTV report, the Telangana government responded, characterising United Breweries' suspension of supplies as a "tactic" to pressure for higher prices. A panel is currently reviewing these requests. Meanwhile, officials in Telangana, where some depots have run out of beer, did not provide comments on the situation.
Another liquor store owner, Purushottam, indicated that stock levels vary widely among outlets; some shops have enough Kingfisher beer for just two days, while others might last ten days. An industry insider noted that United Breweries products might only be available for another two weeks in the state.
As the largest beer company in India, United Breweries controls about 70 per cent of Telangana's beer market, selling around 60 million cases of 12-bottles annually. The Brewers Association of India reported that beer prices in Telangana are approximately 300 rupees per case, in contrast to around 500 rupees per case in Maharashtra. When state taxes and retailer margins are added, consumer prices can be five to six times higher in many Indian states.
