United Breweries targets 6–7% volume growth despite weather challenges, pushes for beer tax reforms 

INDIA – United Breweries Ltd. (UBL), India’s leading beer manufacturer, has projected a 6 to 7% volume growth for the current fiscal year, despite the adverse effects of heavy rains in key states during the second quarter.  

The company, now majority-owned by Dutch multinational Heineken NV, remains optimistic about its long-term outlook, highlighting strong premiumisation trends and ongoing policy changes that may benefit the alcoholic beverages industry. 

Chief Executive Officer and Managing Director Vivek Gupta stated that UBL expects premiumisation to grow by about 25% this fiscal year. 

He added that recent Goods and Services Tax (GST) reforms effective from September 22 could further encourage alcohol consumption, provided state governments do not offset these changes with higher excise duties. 

Gupta emphasized that state governments should work objectively to avoid raising excise taxes to fill revenue gaps, as doing so could dampen consumer spending on alcoholic beverages.  

He further urged the government to reduce and rationalize tariffs imposed on the beer sector, which he described as a local industry closely tied to farmers. 

According to Gupta, beer, with less than 6% alcohol, should not be taxed in the same bracket as spirits containing 40–45% alcohol. He stressed that separating beer from higher-strength alcoholic beverages in taxation policies would encourage consumption, support local production, and improve crop productivity, as beer relies heavily on barley sourced from farmers. 

United Breweries owns well-known brands such as Kingfisher and Kalyani Black Label. In the June quarter of FY26, the company reported an 11% volume growth, with its premium portfolio expanding by 46%.  

Despite weather-related challenges, Gupta maintained that UBL is prepared to sustain its projected growth levels as market conditions normalize. 

Gupta also pointed out that excessive taxation on beer undermines sales in an already capital-intensive industry and risks making local manufacturing unattractive. He highlighted India’s young population, growing cities, and expanding infrastructure as favorable factors for beer consumption, provided regulatory reforms are enacted. 

He concluded by noting that differentiating beer from spirits, coupled with moderate taxation, would make it a more accessible choice for consumers. UBL remains focused on strengthening its market position and leveraging demographic and policy shifts to achieve sustained growth. 

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