Kingfisher and Heineken beers are being pulled from shelves in Telangana as United Breweries Limited (UBL) has decided to stop supplying beer to the Telangana Beverages Corporation Limited (TGBCL).
The company announced the decision on January 8, 2025, citing mounting financial losses that have made it impossible to continue operations in the state.
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UBL explained that stagnant base prices for the past two years, despite rising production costs, have pushed the company into a loss-making position. “Without any price adjustments, every bottle sold adds to our losses. This situation has become unsustainable,” the company said in its statement.
Adding to the challenges, UBL highlighted delays in payments from TGBCL, further straining its finances. The Brewers Association of India (BAI) has called on the Telangana government to address issues like inflation-driven cost hikes, but no progress has been made, according to UBL.
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While announcing the halt in supplies, the company acknowledged its employees’ efforts and reaffirmed its commitment to supporting them during this tough time. UBL noted that it has contributed significantly to the state’s economy, generating over ₹4,500 crore in annual revenue through beer sales. However, given the current circumstances, the company stated it had no alternative but to make this difficult decision.
