Bengaluru: The Indian beer industry is facing a “major trouble” amid rising input costs triggered by the war, supply shortages, and restrictions on pricing imposed by state governments, said United Breweries Ltd (UBL) Chief Executive Officer and Managing Director Vivek Gupta.
Urging for government intervention, he said the lack of regulatory support could stall growth and innovation in the sector and make it difficult to meet the promises.
“I think the beer industry is in major trouble right now because of the war and the financial impact it has on input costs and the inability to take pricing without government approval,” Gupta told PTI.
Meanwhile, the Brewers Association of India represents major beer makers including United Breweries, AB InBev and Carlsberg, which together account for about 85% of beer sold in the country.
“Costs have gone up by 12-15% due to the war, prices in some states now below the cost of production,” the association said.
Over the past three weeks, the cost of key inputs has risen sharply. Glass bottle prices are up by about 20%, while paper cartons have nearly doubled. Materials such as LDPE, BOPP and adhesives have become costlier by 20–25%, and freight and logistics costs have increased by 10%. The rupee has also weakened by nearly 3% against the US dollar, adding to import costs.
Overall, brewers estimate that their costs have increased by around 12–15%.
At the same time, supply chains are under pressure. The war has disrupted aluminium supplies from West Asia, and can manufacturers have warned that prolonged disruption could affect production volumes and even lead to plant shutdowns.
