NEWS
HEINEKEN RESUMES SUPPLY TO TELANGANA STATE AFTER “CONSTRUCTIVE TALKS”
By Siulan Law Mathews DipWSET
20-1-2025
Source: United Breweries
Heineken-owned United Breweries said today that it has resumed beer supplies to India's Telangana state, weeks after it halted supply over pricing and non-payment of dues by the state government.
"We have decided to restart our supplies... for the time being. This is an interim decision in the interest of consumers, workers and stakeholders," United Breweries said in an exchange filing.
The company's shares jumped as much as 6.3 percent following the news, however, shares are still down about 3 percent since the supply suspension decision on 8 January.
The drinks company, which owns the Kingfisher brand, said the interim decision was made following "constructive" talks with the government, which assured it would address the pricing and unpaid dues in a "time bound manner".
The Reuters news agency reported that the Telangana government did not immediately respond to their request for comment.
Telangana is India's top beer-consuming state, where United Breweries has 70 percent of the market share.
But the sate government is caught in a crisis where local media said major drinks giants were believed to have been owed up to USD606 million in unpaid dues.
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.
(the writer can be contacted at: info@thewinechronicle.com)
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