Kingfisher Beer Shortage Hits Telangana Amid Pricing Dispute

A pricing dispute has led to the rationing of Kingfisher beer in Telangana, India. United Breweries, a major supplier, has halted sales due to delayed payments and lack of price increase approvals. The situation illustrates ongoing stress in India's $45 billion alcohol market.

India's biggest beer-consuming state, Telangana, is facing a shortage of Kingfisher beer due to a pricing dispute. United Breweries, a leading producer controlled by Heineken, halted sales after failing to secure a long-awaited price increase while grappling with pending payments.

Local state governments in India, a major market for alcohol, are responsible for setting prices, significantly impacting their tax revenue. In Telangana, the government purchases alcohol to distribute to retail outlets, which are now rationing supplies to avoid hoarding and manage shortages, according to multiple retailers.

The $45 billion Indian alcohol market is under strain, with significant unpaid dues and regulatory challenges burdening companies like Diageo and Pernod Ricard. The latest move by United Breweries underscores the tension, as a panel deliberates on their request for price hikes in a significant market where the company holds a dominant 70% share.

(With inputs from agencies.)