The largest beer manufacturer of India, United Breweries Ltd is facing an unprecedented challenge: deficiency of cans that lead to frequent stocks when consumers now prefer to drink beer. The company has lost at least 1-2 growth points due to this in the last six months, said CEO Vivek Gupta.
“The deficiency of cans is a challenge. The cans as a segment are growing at a certain rhythm, and there is no quick solution for the supply of cans. So it is a bit something for us, in the next quarter. This is certainly (a problem) for us, and also for the industry. These are some of the factors that make me nervous,” Gupta said to analysts during the first neighborhood of society.
Despite this, the manufacturer of Marchi Kingfisher and Heineken grew by 11% in the April-June quarter and gained market shares both in the overall and premium segment. The premium portfolio, in particular, grew to 46%.
GUPTA said there is a fixed supply of cans on the market, both for the beer industry and for some of the other sectors. Even in the beer sector, there is a fixed fee while the question is more than that, he said.
“So we certainly have stocks, because we are not able to provide cans. Or that we cannot get cans,” he said.
The MD said that import cans will also take time. “The government of India, together with multiple associations, is working on it, but this will also take time, the backward integration in the beer sector needs a lot of work. Whether it’s bottles or cans. In reality we are actively working with long -term international suppliers.
United Breweries in his latest annual report for 2024-25 said that the national supply of new glass and cans remains bound. He said that mitigates this risk of long -term supply: “The company is working with existing and alternative suppliers to build a more resilient and diversified supply strategy for bottles and cans”.
United Breweries He recorded his autonomous profit net of the taxes for the first quarter ended on June 30th at RS 184 Crore which grew by 6% on an annual basis and net sales for the period grew by 16% to reach RS 2,862 Crore.
The company has invested RS 136 crores in the first quarter compared to RS 89 crores at the same time last year. The investments focused mainly on commercial initiatives and the supply chain.
Last Wednesday, United Breweries’ shares closed a piece on the BSE in RS2.020, down 0.78%.
Discover more from Gautam Kalal
Subscribe to get the latest posts sent to your email.
