United Breweries Share Price Declines After Mangalore Brewery Closes

Shares of United Breweries Ltd. fell 0.53% on Tuesday after it announced the closure of its Mangalore brewery unit, effective June 30, 2025. This decision is part of a strategic capacity consolidation plan.

United Breweries is focusing on expanding its Nanjangud Brewery in Mysuru, where investments are being made to enhance supply chain efficiencies, the company said in an exchange filing.

The company assured that the closure of the Mangalore Brewery will not impact its business performance in Karnataka. "We reaffirm our deep and enduring commitment to the State, its communities, and our consumers. We are also committed to taking all necessary and responsible steps to support our employees and workmen through this transition," the firm said in an exchange filing.

United Breweries, a leading player in the Indian brewing industry, is known for its popular beer brands such as Kingfisher. The company has a strong presence across India.

The closure has been communicated to the Excise Department of Karnataka and the stock exchanges to ensure transparency, the company said.

Out of 19 analysts tracking the company, four maintain a 'buy' rating, six recommend a 'hold', and nine suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 2% from the last regular trading price.