NEWS
INDIA: GLOBAL DRINKS GIANTS THREATENED TO HALT SUPPLY TO TELANGANA STATE OVER NON-PAYMENT
By Susan Lewis
20-11-2025
Source: Unsplash
Some global drinks giants have threatened to stop supplies to the alcohol monopoly of India’s Telangana state in protest of delays in payments.
According to the Reuters news agency, big international alcohol groups including Heineken, Diageo and Pernod Ricard have sent a letter to Telangana state demanded the outstanding settlement of INR29.85 billion (USD337 million) in overdue payments.
Signed by the Brewers Association of India, the Confederation of Indian Alcoholic Beverage Companies and the International Spirits and Wines Association of India, the letter urged the state to release payment of the outstanding INR29.85 billion immediately.
“Further delay will risk supply shortages and threaten the continuity of business,” Reuters quoted the letter as saying.
The letter suggests that this will put extra strain on the cash flows of some smaller unnamed suppliers unless payment is made soon.
The long-overdue payments relate to May of last year and the threat to withhold supplies comes as brewers and distillers enter the peak season for consumption, when demand can rise by up to 75 percent over the New Year season.
“Non-clearance of old payments and delay in current payments have created a situation which is not sustainable for the industry,” the letter said.
“Many companies will not be able to continue operations as they do not have the financial resources to do so,” it added.
The state of Telangana is one of the largest alcohol markets in India, it has a history of delaying payments to alcohol suppliers.
In January, Heineken-owned United Breweries, owner of the Kingfisher beer brand, briefly halted supplies to the state in protest delays in payment.
(the writer can be contacted at: info@thewinechronicle.com)
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