United Breweries suspends beer supply to Telangana Beverages Corporation
They cited the reason due to significant and operating losses that was ongoing in Telangana.
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United Breweries suspends the supply of beer to Telangana Beverages Corporation Limited (TGBCL).
In a statement, the spokesperson at United Breweries shared, “Despite our continuous efforts over the past two years, there has been no increase in the base prices offered for our products. This has resulted in escalating losses, making our operations in the State unviable. We have a fiduciary responsibility to all our stakeholders, and with each beer sold at a loss, it has become unsustainable for us to continue our operations. Additionally, the substantial overdue payments for the supplies made to TGBCL further complicate the situation."
It was further stated that The Brewers Association of India (BAI) had made multiple representations to the Government regarding the industry-wide challenges, urging price increases to offset inflation. But, there was no resolution to date.
"We remain committed to supporting our employees during this challenging time and deeply appreciate their hard work. Our company contributes more than ₹4,500 crore annually to the State’s revenue. Despite the mounting financial pressures, we have ensured the uninterrupted supply of our beer, driven by our commitment to consumers and customers. We urge the State Government to take swift action and work with us to safeguard livelihoods, restore financial sustainability, and ensure the continued availability of our products,” added the spokesperson.
