Big brewers celebrate as Telangana hikes beer prices by 15%
Telangana has raised beer prices by 15%, much to the relief of big brewers supplying their brands to the Indian state. But some are questioning whether the price hikes are high enough. The post Big brewers celebrate as Telangana hikes beer prices by 15% appeared first on The Drinks Business.
Telangana has raised beer prices by 15%, much to the relief of big brewers supplying their brands to the Indian state. But some are questioning whether the price hikes are high enough.
The Indian state of Telangana has granted calls from big brewers to raise the price of beer.
From Tuesday (11 February) the southern Indian state has hiked prices by 15%. The decision comes weeks after United Breweries, Heineken's Indian subsidiary, briefly halted supply of its beers over pricing issues.
United Breweries announced on 8 January that it would stop supplying its beers to Telangana due to delayed payments and the government's refusal to approve higher prices since 2019/20. The company said these issues had hurt its finances.
The company resumed its supply to Telangana after a fortnight. A spokesperson for United Breweries said at the time: “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 beer giant confirmed that the interim decision was made following what it reported as “constructive” talks with the government, which has since assured it would address the pricing and dues in a “time bound manner".
United Breweries holds a commanding 70% of the beer market share in the region, suggesting it has some bargaining power when it comes to negotiating price rises.
The Telangana government took the decision to raise prices by 15% on all beer moving forward. All existing stock will also sold at the revised rates from Tuesday.
Indian states are responsible for regulating the price of alcohol products, which contributes a major part of their tax revenue. Alcohol is bought by the state government and then supplied to shops in Telangana.
Following the decision announced on Tuesday, the Brewers Association of India (BAI), a federation of some of the country's largest beer makers, said it welcomed the hike in beer prices and urged the Telangana chief minister to resolve the issue of pending dues of the beer industry.
The BAI was created by United Breweries, AB InBev and Carlsberg, which between them account for about 85% of the country’s beer sales.
Its first action when it launched in June 2024 was to lobby the national government in Delhi about how beer is taxed in India, a factor they argued has caused the Indian beer market to stagnate at around 400 million cases a year, despite its vast growth potential.
Vinod Giri, director general of BAI, said that the beer price hike in Telangana was below the industry's expectations and was less than the increase in production cost, according to Reuters.
He argued that the government should allow companies to price products as they wish, citing the approach of "investment friendly" states like Katarnaka and Maharashtra as beneficial to the beer industry.
The Indian state of Telangana has granted calls from big brewers to raise the price of beer.
From Tuesday (11 February) the southern Indian state has hiked prices by 15%. The decision comes weeks after United Breweries, Heineken's Indian subsidiary, briefly halted supply of its beers over pricing issues.
United Breweries announced on 8 January that it would stop supplying its beers to Telangana due to delayed payments and the government's refusal to approve higher prices since 2019/20. The company said these issues had hurt its finances.
The company resumed its supply to Telangana after a fortnight. A spokesperson for United Breweries said at the time: “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 beer giant confirmed that the interim decision was made following what it reported as “constructive” talks with the government, which has since assured it would address the pricing and dues in a “time bound manner".
United Breweries holds a commanding 70% of the beer market share in the region, suggesting it has some bargaining power when it comes to negotiating price rises.
The Telangana government took the decision to raise prices by 15% on all beer moving forward. All existing stock will also sold at the revised rates from Tuesday.
Indian states are responsible for regulating the price of alcohol products, which contributes a major part of their tax revenue. Alcohol is bought by the state government and then supplied to shops in Telangana.
Following the decision announced on Tuesday, the Brewers Association of India (BAI), a federation of some of the country's largest beer makers, said it welcomed the hike in beer prices and urged the Telangana chief minister to resolve the issue of pending dues of the beer industry.
The BAI was created by United Breweries, AB InBev and Carlsberg, which between them account for about 85% of the country’s beer sales.
Its first action when it launched in June 2024 was to lobby the national government in Delhi about how beer is taxed in India, a factor they argued has caused the Indian beer market to stagnate at around 400 million cases a year, despite its vast growth potential.
Vinod Giri, director general of BAI, said that the beer price hike in Telangana was below the industry's expectations and was less than the increase in production cost, according to Reuters.
He argued that the government should allow companies to price products as they wish, citing the approach of "investment friendly" states like Katarnaka and Maharashtra as beneficial to the beer industry. 
