NEWS
INDIA: HEINEKEN SUSPENDS SUPPLY AS TELANGANA STATE OWES USD606M TO GLOBAL DRINKS GIANTS
By Susan Lewis
14-1-2025
Source: United Breweries
Heineken controlled United Breweries is withholding supplies in India’s Telangana State in a standoff with the state government over unpaid dues which has affected drinks giants including Diageo, Pernod Ricard and AB InBev as well.
In India, retail of alcoholic drinks are controlled by state governments which buy stocks from suppliers at a state-controlled price and then sell in state-owned retail outlets.
Telangana is the country’s largest beer-consuming state, the government is caught in a crisis where major drinks giants were believed to have been owed up to USD606 million in unpaid dues.
United Breweries, which holds a 70 percent market share in Telangana and owner of the popular Kingfisher brand, last week cited delayed payments and a lack of government approval for higher prices since 2019 for halting sales to Telangana.
"Today we got a notification from our depot that there is no Kingfisher beer stock any more," Madhusudhan Rao, a liquor store owner in state capital Hyderabad, told Reuters news agency.
Telangana minister, Jupally Krishna Rao, blamed United Brewers for using this as a tactic to press for price increase. He confirmed that the state owe the brewer INR6.6 trillion (USD76m) but did not explain why they did not pay.
The Brewers Association of India said that brewers can only get about INR300 per case in Telangana whereas in Maharashtra they can get INR500 a case.
The crisis isn’t limited to beer makers. Whisky and Scotch producers are also grappling with mounting unpaid dues.
Reuters news agency quoted sources as saying that Pernod Ricard is owed INR15t (USD173m) while Diageo is seeking INR10t (USD115.5m).
Carlsberg and AB InBev are also in the red, with Telangana owing them nearly INR400m (USD4.6m) and INR1.5t (USD17.3m), respectively.
(the writer can be contacted at: info@thewinechronicle.com)
ALL RIGHTS RESERVED
**IF YOU THINK THE WINE CHRONICLE IS WORTH SUPPORTING, PLEASE MAKE A DONATION TO HELP US IMPROVE AND CONTINUE OUR WORK**
TRENDING│ FOCUS│ MISSION│ ABOUT US│ CONTACT
| 