Restaurant India News: United Breweries in Focus After Heineken Reports Q3 India Volume Dip

Shares of United Breweries (UB) are likely to attract attention after Heineken NV, UB’s parent company, reported a mid-single-digit decline in beer volumes in India for the September quarter, even as net revenue grew in the same range. The growth was supported by strong pricing, improved portfolio mix, and premium brands such as Kingfisher Ultra Max and Amstel Grande.

Heineken cited an unusually strong monsoon season during July and August as a key factor affecting consumption in India. However, the impact was partially offset through price hikes in key states and a favourable product mix. “In India, organic net revenue grew by a mid-single-digit, while beer volume fell by a mid-single-digit, impacted by an unusually strong monsoon season. We outperformed the market. Price-mix expanded by a high single digit, supported by pricing in key states and portfolio mix,” the company said in its earnings statement.

Despite the overall volume decline, UB’s premium beer segment, generally priced above Rs 125 per pint, experienced growth in the low teens, driven by Kingfisher Ultra Max and the launch of Amstel Grande. Domestic revenue growth followed this trend, underpinned by an expanding high-margin premium portfolio.

The adverse weather also disrupted supply chains and consumer demand, a challenge reflected across India’s broader consumer goods sector. United Breweries navigated the softer quarter with a combination of price-led growth and focus on premium offerings.

In the broader Asia Pacific market, Heineken reported organic net revenue growth of 5.6 percent, although consolidated volume slipped 0.8 percent. Globally, Heineken’s organic beer volume declined 4.3 percent, with gains in Africa and the Middle East offset by lower sales in Europe and the Americas. The company emphasized that it is gaining or holding market share in most regions, including India, Mexico, Brazil, Vietnam, Nigeria, and Ethiopia, highlighting India’s relative resilience within its global footprint.

Heineken currently holds a 61.5 percent stake in United Breweries, which continues to be a leading player in India’s beer market with brands such as Kingfisher, Kalyani Black, Bullet, Maharaja Premium Indian Pilsner, and Taj Mahal Premium. The company also distributes international labels including Heineken, Amstel Bier, and Sol, leveraging Heineken’s global portfolio to support UB’s domestic positioning.

This performance underscores the importance of premiumization and strategic pricing in mitigating volume pressures while maintaining revenue growth, positioning United Breweries to sustain its leadership in India’s competitive beer market.