United Breweries may raise beer prices again in Telangana, days after the state allowed price hikes for the first time in five years. The move comes as a relief for the company, which had briefly halted supply due to delayed payments and lack of price approvals.
CEO Vivek Gupta stated that despite the adjustment, the company is “not fully out of the red” in Telangana and anticipates another price increase soon. With a 70% market share in the state, United Breweries derives 15-20% of its revenue from Telangana, though it remains unprofitable there.
Meanwhile, beer sales in January were weak, partly due to the Telangana supply halt, but rebounded in February. The company reported a 25% drop in quarterly profit, as inflation-hit consumers cut back on budget beer purchases in states like West Bengal and Tamil Nadu.
