Introduction:
Leading alcohol company has suspended its beer supply to Telangana Beverages Corporation Limited (TGBCL) due to unresolved financial issues. TGBCL has not revised beer prices since 2019 and has unpaid dues, making the continued supply unsustainable for the company.
Also Read: Penny stock jumps after company to consider stock split
Share price movement of United Breweries:
On January 9, 2025, United Breweries Ltd. opened at ₹1,985.20, down 0.81% from its previous close of ₹2,001.25. The stock reached a high of ₹2,030.20 (2.46%) and a low of ₹1,979.10. By 2:05 PM, it traded at ₹2,013.60, a 0.62% increase, with a market cap of ₹53,240.62 crore.
United Breweries Suspends Beer Supply to TGBCL:
United Breweries Limited has announced the suspension of its beer supply to Telangana Beverages Corporation Limited (TGBCL) due to unresolved issues. The company stated that TGBCL has not revised the basic beer price since 2019, leading to losses.
The suspension also stems from TGBCL’s significant unpaid dues for past beer supplies. These financial issues have made continued supply unfeasible for United Breweries. As a result, the company has ceased its operations with TGBCL.
The decision reflects ongoing financial challenges in the beer supply chain with TGBCL. United Breweries seeks resolution of overdue payments and price revisions to ensure operations and profitability. The suspension will remain in effect until these issues are addressed.
Recent news on United Breweries:
As of November 08, 2024, United Breweries Ltd. (NSE: UBL) launched Amstel Grande, a premium strong beer in Maharashtra. The company plans nationwide expansion, offering a unique blend of Dutch brewing heritage tailored for Indian preferences.
Stock performance of United Breweries for Period of 1 week, 6 months and 1 year:
Over the past week, United Breweries Limited saw a decline of 6.36%. The stock also dropped 3.11% over the past six months but has gained 10.4% over the past year, indicating moderate long-term growth despite recent setbacks.
Also Read: PSU stock jumps after it commissions hydroelectric project in Bhutan
Shareholding pattern of United Breweries:
| All values in % | Sep 2024 | Jun 2024 | Mar 2024 |
| Promoter | 71% | 70.80% | 70.80% |
| FII | 6% | 6% | 7% |
| DII | 18% | 18% | 17.30% |
| Public | 5.10% | 5% | 5.30% |
About United Breweries:
United Breweries Ltd. (NSE: UBL) is the market leader in India’s beer industry, with Kingfisher as its flagship brand. The company operates 21 breweries, selling beer under both local and international brands like Heineken and Amstel.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
