Heineken’s India unit resumes beer supply to Telangana

India | Heineken’s Indian unit United Breweries will resume beer supplies to Telangana state, the company said on 20 January. It had halted supplies on 8 January, claiming the government’s delayed payments and non-approval to higher base prices since 2019/20 had rendered its beer business in Telangana unviable.

In a filing, United Breweries said: “We have decided to restart our supplies ... for the time being. This is an interim decision in the interest of consumers, workers and stakeholders.”

The brewer of Kingfisher beer added that the decision was made following “constructive” talks with the government, which assured it would address the pricing and dues in a “time bound manner”.

The company’s shares jumped as much as 6.3 percent following the news, Reuters news agency reported.

Telangana is among India’s top beer consuming states. United Breweries has a 70 percent market share. States in India 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 shops in Telangana, where officials had already rationed supplies to deter hoarding and tackle shortages.