Indian state permits beer price hike, weeks after row with Heineken's United Breweries (updated)

United Breweries

11/02/2025 06:23

(Adds details, background)
    By Rishika Sadam and Tanvi Mehta
       HYDERABAD, India, Feb 11 (Reuters) - India's top
beer-consumer state Telangana has allowed beer prices to be
increased from Tuesday, weeks after a brief halt in supply by
Heineken's  HEIN.AS  Indian unit United Breweries  UBBW.NS  over
pricing issues.
    The order also directed that all existing stock be sold at
the revised rates from Tuesday.
    In January, the 'Kingfisher' beer manufacturer halted supply
of beer briefly, and resumed following "constructive" talks with
the government, which assured it would address the pricing and
dues in a "time bound manner."
    United Breweries dominates the market in the southern state
of Telangana with a 70% share. 
    The company, in its January 8 decision, said it had decided
to halt supply over delayed payments and a lack of government
approval for higher prices since 2019/20, which hurt its
finances.
    India is the world's eighth-biggest alcohol market by
volume, and states individually regulate the pricing of alcohol
products, which are major contributors to their tax revenue.
    Alcohol is bought by the state government and then supplied
to stores in Telangana, where officials had rationed supplies to
deter hoarding and tackle shortages.
    United Breweries did not immediately respond to a request
for comment. Shares inched 1.2% lower after the government order
dated Monday. 

 (Reporting by Rishika Sadam and Tanvi Mehta; Editing by YP
Rajesh)
 ((tanvi.mehta@thomsonreuters.com; https://twitter.com/TanviMehta710;))