United Breweries assured of price hike; resumes operation in Telangana

Kingfisher and Heineken brand beer maker reversed its decision to suspend beer supplies in Telangana, on January 20.

By  Storyboard18Jan 21, 2025 9:15 AM
United Breweries assured of price hike; resumes operation in Telangana
The development follows United Breweries' earlier announcement on 8 January that it had suspended the supply of beer to TGBCL due to unresolved issues.

As United Breweries announced resuming the supply of beer to the Telangana Beverages Corporation Ltd. (TGBCL), the state government has assured the beer maker of a price hike decision soon.

According to a CNBC-TV18 report, the decision on a price hike is expected in the next 30 to 45 days. Meanwhile, outstanding dues are likely to be cleared in instalments in the next 12-13 months.

Shares of United Breweries rose by 5% on 20 January after the company announced its decision to immediately resume the supply of beer to TGBCL.

In a statement to the stock exchange, the maker of Kingfisher beer described the move as an "interim decision" made in the "interest of consumers, workers, and stakeholders."

The company said, "We have been in talks with TGBCL, and these have been constructive discussions. TGBCL has assured us that our concerns regarding pricing and outstanding payments will be addressed within a defined timeframe. Based on these assurances, we have decided to restart supplies to TGBCL for the time being."

In response to the same, Telangana's excise commissioner said that no dues have been pending to the beer industry since September 2024 and that they have been following a 45-day cycle for releasing the payment.

The development follows United Breweries' earlier announcement on 8 January that it had suspended the supply of beer to TGBCL due to unresolved issues. The company had cited the lack of a basic price revision since 2019-2020, which led to significant financial losses, as well as overdue payments from TGBCL for previous beer supplies.

This resumption of supply highlights a significant step forward in United Breweries’ negotiations with TGBCL. While the company awaits further resolution, the decision is expected to provide temporary relief for all parties involved, including consumers and employees.


Tags
First Published on Jan 21, 2025 9:15 AM

More from Storyboard18

How it Works

India's 2025 salary increase: 9.2% projected, compared to 9.3% in 2024, says Aon study

India's 2025 salary increase: 9.2% projected, compared to 9.3% in 2024, says Aon study

How it Works

‘Summon YouTube to court, not just Ranveer, Apoorva': Anupam Mittal on Ranveer Allahbadia controversy

‘Summon YouTube to court, not just Ranveer, Apoorva': Anupam Mittal on Ranveer Allahbadia controversy

How it Works

Influencer search volume booms: National stars surge 47% to 3M, global at 2M, regional dips, says Kantar

Influencer search volume booms: National stars surge 47% to 3M, global at 2M, regional dips, says Kantar

How it Works

BCCI revises policy on players' families for Champions Trophy 2025

BCCI revises policy on players' families for Champions Trophy 2025

How it Works

Bombay HC gives BCCI breathing room in tax exemption case

Bombay HC gives BCCI breathing room in tax exemption case

How it Works

Need to rethink customer interactions to improve experience: Mauro Carobene of Tata Communications

Need to rethink customer interactions to improve experience: Mauro Carobene of Tata Communications

How it Works

DoT asks social media platforms to remove content violating Telecom Act

DoT asks social media platforms to remove content violating Telecom Act

How it Works

MeitY Secretary S Krishnan to elucidate on AI and accountability at Storyboard18 DNPA Conclave 2025

MeitY Secretary S Krishnan to elucidate on AI and accountability at Storyboard18 DNPA Conclave 2025