United Breweries Suspends Beer Supply to Telangana Amid Pricing Disputes

United Breweries Ltd, the renowned maker of Kingfisher beer, has suspended its beer supply to Telangana Beverages Corporation Limited (TGBCL) due to unresolved pricing and payment issues. This decision, announced on Wednesday, has led to a 4% drop in the company’s share value and highlights critical challenges in the state’s liquor industry.

Unresolved Pricing Issues Since 2019

United Breweries cited stagnant pricing as one of the main reasons for the suspension. The company revealed that TGBCL has not revised the basic price of its beer since the financial year 2019-20. This prolonged pricing freeze has resulted in substantial financial losses for the company, making the continued supply economically unviable.

Significant Payment Delays From TGBCL

Another critical factor contributing to the decision is the accumulation of unpaid dues. TGBCL, which holds a monopoly on alcohol distribution in Telangana, has failed to settle significant overdue payments for past beer supplies. These unresolved financial strains have further exacerbated the situation, leaving United Breweries with no choice but to halt operations in the state until the issues are addressed.

United Breweries Share Performance

As of January 09, 2025, at 12:00 PM, United Breweries Limited’s shares are trading at ₹2,014.50 per share, reflecting a 0.67% increase from the previous day’s closing price. Over the past month, the stock has surged by 2.88% and over the past year, it has risen by 7.90%. The stock’s 52-week range is between a high of ₹2,204.90 and a low of ₹1,647.25 per share.

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