Tipplers across Telangana are nursing a heartbreak after their favourite Beer brand has bid goodbye to them. The United Breweries (UB), manufacturer of famous Kingfisher (KF) beer variants and Heineken, has informed SEBI (Securities and Exchange Board of India) that it is suspending supply to the Telangana State Beverages Corporation Limited (TSBCL).
This effectively meant that the last batches of beer brands like Kingfisher Premium and Kingfisher Light have turned into prized commodities in the state. In the last decade, Kingfisher beer has captured a major share of the beer market in the state and experts put this number anywhere between 60-80 per cent, depending on whether it is rural or urban Telangana. In rural parts, Kingfisher Light and Premium variants are preferred and in urban areas, KF Ultra also joins the list.
United Breweries, in its press statement, explained that manufacturing and selling its products at current price points are no longer viable in Telangana, and it expected the state government to hike rates. On the other hand, Telangana excise minister held a press meet and informed that they are not ready to cave into UB's demands and increase the price as per the latter's wishes.
However, he said that a committee was looking into the issue and based on their recommendations, prices would be increased. He added they were also in the process of clearing the dues to UB. Whatever be the case, there is a high demand for KF beer now among customers as well as wine outlets. Due to the current scenario, depots have rationed the beer to outlets and they can only lift a certain quantity of KF beer.
“The stock we have will last only a few days and after that, we do not have any option apart from turning away the customers,” said Laxman, a wine shop operator from Karimnagar region. “Kingfisher beer enjoys a loyal customer base. A customer who comes to purchase a Kingfisher beer will not settle for any other brand. It is affordable and also people love its taste. They may go and try in other wine shops till they get hold of KF beer. This is the mentality of a beer consumer in rural Telangana.”
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For Laxman, it is also a matter of prestige to hold on to those last few bottles of KF beer to proudly display in his shop. Now there is a silent competition on which shops will outlast others in having stock of KF beer. For this reason, Laxman has decided to sell a limited quantity of KF beer to his customers.
With summer fast approaching, Santosh, a manager in one of the wine outlets in the IT belt of Hyderabad is worried that they may lose revenue in the whole process. “It is a fact that KF beer has become a summer drink in Telangana; the sales shoot through the roof. Now that KF won't be available in the summer, we do not know if consumers can easily switch to other beer brands. Even if he did, it is unlikely that he would drink the same quantity, which may ultimately affect our sales.”
Usually, beer sales pick up from the end of February when temperatures start soaring. Wine shop owners are looking into other options that can satisfy their customers like Turborg Light or other local brands. KF enthusiasts only hope that the government and UB reconcile and facilitate the return of their favourite bird to its Deccan nest.