Leading international alcohol producers — including Heineken, Diageo, and Pernod Ricard — are pressing the Telangana government to release overdue payments totaling 29.85 billion rupees ($337 million), according to a letter reviewed by Reuters. The companies warn that further delays could trigger supply disruptions and jeopardize business operations.
Telangana, one of India’s largest alcohol markets, has long had strained financial dealings with beer and spirits suppliers who sell exclusively to state-run depots. In January, Heineken-owned United Breweries briefly stopped supplying beer to the state over delayed payments.
The dues, pending since May 2024, come at a critical time for the industry as festive-season demand typically jumps by roughly 75%. In the November 12 letter, industry bodies — the Brewers Association of India, the Confederation of Indian Alcoholic Beverage Companies, and the International Spirits and Wines Association of India — urged the government to urgently release the funds.
“Non-clearance of old payments and delay in current payments have created a situation which is not sustainable for the industry,” the letter stated, adding that several companies may be forced to halt operations due to financial strain.
Neither the Telangana government nor the three global liquor majors responded to Reuters’ requests for comment.
India’s alcohol sector, a major growth market for global producers, is already navigating tightening regulations, including stricter proposed advertising rules and ongoing antitrust probes.
