Beer Ban: Kingfisher Exits Telangana Due to Losses

In a shocking move that could leave beer lovers in Telangana high and dry, United Breweries Ltd (UBL) has pulled the plug on the supply of Kingfisher and Heineken beers to the state.

Citing major losses and over-pricing disputes with the government, the company has now released an official statement explaining its exit.

UBL stated that despite efforts to keep up with costs, the lack of price revisions and overdue payments from Telangana Beverages Corporation Ltd (TGBCL) forced them to stop supply.

They claim that they haven’t changed their base prices for the last two years which has become unsustainable with rising costs.

In their media statement, UBL made clear that they contribute over ₹4,500 crore to Telangana’s revenue annually, but still, the government hasn’t offered any help in the last two years. However, an official statement from the local government is still impending.

Alcohol tax is a major source of revenue for state governments. With this disruption, both the state and the brewery can face a major hit in their operations.

While UBL claims they have tried to resolve the issue, we are still waiting to know the other side of the story.

Amidst all this, consumers and retailers remain uncertain about the future of beer in Telangana.