HomeFoodKingfisher Beer Shortage Amid Pricing Dispute with Heineken

Kingfisher Beer Shortage Amid Pricing Dispute with Heineken

Kingfisher Beer Shortage Amid Pricing Dispute with Heineken

Kingfisher Beer Shortage Amid Pricing Dispute with Heineken

Photo: kingfisherbeer.co.uk

HYDERABAD, (Reuters) – Telangana, India’s largest beer-consuming state, is facing a shortage of Kingfisher beer after Heineken-owned United Breweries suspended supply over a pricing dispute. The Telangana government regulates alcohol prices and purchases beer from companies to supply retailers. Heineken halted deliveries last week, citing unpaid dues and delays in price approvals dating back to 2019, prompting state depots to ration supplies to prevent hoarding.

Retailers in Hyderabad have reported dwindling stocks, with some saying they have only a few days’ supply left. Kingfisher, which holds a 70% market share in Telangana and sells around 60 million cases annually, is now in short supply.

The payment issue reflects broader financial challenges for alcohol companies in India. Global players like Diageo, Pernod Ricard, and AB InBev are collectively owed $466 million by Indian states. Telangana officials have suggested that United Breweries suspended supply to pressure the state for higher prices, but no resolution has been reached.

With beer prices in Telangana significantly lower than in other states—300 rupees per case compared to 500 rupees in Maharashtra—the situation underscores the challenges in India’s $45 billion alcohol market.

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