Bad news, beer fans: Heineken, Kingfisher sales halted in Telangana over unpaid dues
The United Breweries Limited claimed that TGBCL has accumulated a large amount of past-due from the past beer supplies
By Newsmeter Network Published on 8 Jan 2025 4:38 PM IST
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Hyderabad: Tipplers, thereās bad news for you: Heineken and Kingfisher beer supplies to Telangana have been temporarily halted by United Breweries Limited over pending dues.
The United Breweries Limited (UBL) on Wednesday claimed that Telangana Beverages Corporation Limited (TGBCL) has accumulated a large amount of past-due from the past beer supplies. It has not changed the basic pricing of their beer since 2019-20, resulting in huge losses in the State.
United Breweries manufactures popular beer brands such as Kingfisher, Kingfisher Strong, Kingfisher Ultra, Kingfisher UltraMax, and others that are popular in Telangana.
āIn compliance with Regulation 30 of the SEBI Listing Regulations, we wish to inform you that the company has decided to suspend the supply of beer to TGBCL with immediate effect,ā United Breweries Limited said in a stock exchange filing.
As a result, the continued supply of beer to TGBCL has been rendered unviable as significant dues remain unpaid by TGBCL over the past supply of beer, the UBL said.
"With each beer sold at a loss, it has become unsustainable for us to continue our operations," according to the UBL Furthermore, late payments from TGBCL have exacerbated the financial hardship.
United Breweries further stated that the Brewers Association of India (BAI) had made many representations to the government about the industry's financial issues, demanding pricing reductions to combat inflation, but no resolution had been found.
Despite financial challenges, the corporation is committed to supporting its employees and contributes over Rs 4,500 crore to the state's revenue. It urged the Telangana government to act quickly to ensure financial stability and the continuing availability of beer products in the state.
Shares of United Breweries fall:
The company's shares plummeted after it announced the suspension of its beer sales in the state.
United Breweries' shares fell more than 7 per cent to an intraday low of Rs 1,920 per share on the BSE. The company, valued at Rs 52,684.05 crore, is listed on the BSE 200 index.
According to BSE statistics, the stock has decreased by approximately 5 per cent in the last week.
