Beer Lovers in Telangana Face Heartbreak as Kingfisher Suspends Supply – Here’s Why
In a major setback for beer lovers in Telangana, United Breweries, the maker of the popular Kingfisher brand, has announced the suspension of all Kingfisher beer supplies to the Telangana Beverages Corporation Ltd (TGBCL).
Hyderabad: In a major setback for beer lovers in Telangana, United Breweries, the maker of the popular Kingfisher brand, has announced the suspension of all Kingfisher beer supplies to the Telangana Beverages Corporation Ltd (TGBCL). The decision, effective immediately, comes as a result of “significant and ongoing operating losses,” according to a statement issued by the company.
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Reasons Behind Kingfisher’s Suspension in Telangana
United Breweries cited the lack of price increases over the past two years despite rising costs, which has resulted in escalating losses. “This has made our operations in the State unviable,” the company said. The brewery also highlighted the delay in payments from the Telangana Beverages Corporation, which further compounded the financial strain.
Kingfisher beer brands, including Kingfisher Strong, Kingfisher Ultra, and Kingfisher UltraMax, account for 60-70% of beer sales in Telangana, making the suspension a significant blow to local beer enthusiasts. The company has stressed its fiduciary responsibility to stakeholders, stating that continuing operations under these conditions is unsustainable.
Impact of Price and Payment Issues on Kingfisher’s Operations
The Telangana government had recently raised beer prices for consumers but did not correspondingly increase the base prices paid to manufacturers. United Breweries also mentioned that the delay in payments from TGBCL exacerbated the financial challenges, making the situation untenable for the company, which contributes more than Rs 4500 crore annually to the state’s exchequer.
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Industry Representation and Urging Government Action
The Brewers Association of India (BAI) has repeatedly urged the Telangana government to address the pricing issues and offset inflationary pressures. However, no resolution has been reached so far. Local industry leaders, such as D Venkateshwar Rao, president of the Telangana Wine Dealers’ Association, have called on the government to resolve the issue swiftly to restore the supply of Kingfisher beer and prevent further business losses for liquor sellers in the state.
