United Breweries sees minimal impact from global tariff risks due to local focus

Economic Times

07-08-2025

Synopsis
United Breweries anticipates minimal impact from global tariffs due to its local focus, according to Chairman Anand Kripalu. The company is actively pursuing volume growth and premiumization strategies to elevate its market share, currently below 50%. Efforts include boosting local barley sourcing and addressing can capacity challenges to strengthen domestic operations.
India's largest brewery, United Breweries Ltd (UB), chairman Anand Kripalu said tariffs could pose a risk to the company with global supply chain disruptions; however, the impact is likely to be minimal due to UB's heavy reliance on local sourcing and sales.Talking to shareholders during the company's 26th annual general meeting on Thursday, Kripalu said the company is undertaking multiple efforts to drive volume growth and premiumisation when its present market share is sub-50%.Kripalu said there could be risks to UB's business due to tariffs, which could slow down global trade and lead to supply chain disruptions. "However, we do believe the bulk of our business is local, we largely produce locally, we sell locally, and our effort will be to make sure the impact on our domestic financials remains in check,' he said.The chairman said the company's market share today is a bit shy of the halfway mark, and there have been significant efforts to drive volume growth. "And importantly, to drive premiumisation, so that people don't drink more but drink better,' said Kripalu.The Indian beer market is nearly 445 million cases and led by three companies—United Breweries, AB InBev, and Carlsberg—who together have controlled almost 80–85% of the market for decades now.
Vivek Gupta, chief executive of UB, said the company is improving its barley sourcing locally to reduce imports and support farmers. "There is an active program we are doing in Rajasthan to get more barley here, so that our reliance on imports is lesser,' he said.Gupta also reiterated the ongoing efforts by the company in sourcing glass bottles and cans, adding there were "some challenges in the capacity of cans in India, and we are working with partners to invest long term in India, so that we don't have those issues in the future.'Kripalu also mentioned that the company leads the category when it comes to premiumisation, with Kingfisher Ultra and Ultra Max enjoying growths of 38% and 59%, respectively, together giving the company's premium portfolio a 2% market share growth. He also mentioned the company expects the impact of increased duty on liquor in Maharashtra to have a positive effect on beer sales in the state.