United Breweries Ltd. is betting on district-level expansion in Maharashtra as India's beer market returns to growth, with the company saying consumption patterns are changing beyond major cities and premium beer demand continues to rise.
The maker of Kingfisher beer said Maharashtra remains one of its biggest growth markets, with category growth running above 20%. The company is now treating each district as a separate growth market as it expands distribution, cold storage infrastructure and premium offerings across the state.
"We are looking at Maharashtra as every district as a country now," Managing Director and Chief Executive Officer Vivek Gupta said during the company's earnings call.
The comments come as India's beer market rebounds after a weak second half in 2025. United Breweries said the category grew around 10% in the March quarter, helped by regulatory changes, improving affordability and higher investments by brewers.
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Maharashtra Push
United Breweries said Maharashtra has emerged as a major growth driver after changes in state policies and rising beer consumption outside Mumbai and Thane.
Gupta said the company continues to see opportunities across districts as more consumers shift towards beer from low-end spirits. "We also seeing economy segment in Maharashtra expanding," Gupta said. "When economy segment expands, lot of consumers they switch their choices from low end spirits to beer."
The company said both the beer category and its own business in Maharashtra are growing above 20%. Gupta said the company expects the trend to continue unless there is a major change in policy.
Premium Beer Demand
United Breweries also pointed to rising demand for premium beer, especially Heineken Silver and newer variants such as Kingfisher Smooth.
The company said premium beer volumes rose 21% during FY26, while premium products now account for less than 10% of its overall portfolio by volume. Gupta said Heineken Silver continues to gain traction with consumers and the company plans to expand production capacity further over the next two years.
"Heineken Silver is not only expanding the category, but it is actually delighting the consumer," he said.
United Breweries said it will add Heineken production facilities in more locations, including eastern India, while its upcoming Uttar Pradesh brewery will include a Heineken facility serving northern markets. The company also said its recently launched Kingfisher Smooth brand has seen strong repeat demand in Rajasthan.
Cold Beer Expansion
United Breweries said it is expanding its cooler network as part of efforts to increase cold beer availability across markets.
The company plans to deploy 16,000 additional coolers this year and said the programme is already helping improve consumption of its brands. "Our cooler programme is doing extremely well," Gupta said during the call.
The brewer is also adding can production lines in Telangana and Maharashtra, which are expected to begin operations before July.
Flavoured Beer Trend
The alcohol manufacturer said it is tracking shifts in consumer preferences, including interest in flavoured and craft-style beers.
The company said it tested Kingfisher flavoured beer variants in Goa and Daman and used the markets to study consumer behaviour and product stability. Gupta said the company continues to monitor trends emerging from local craft brewers. "We consistently work with the local players to understand the new trends," he said.
The company said it plans to focus on fewer product launches while scaling innovations gradually across states after studying consumer response.
Cost Pressures Remain
Despite the demand recovery, United Breweries warned that rising packaging and energy costs linked to the Middle East conflict could pressure profitability in the coming quarters.
The company expects a Rs 400 crore to Rs 500 crore impact from higher costs tied to glass, aluminium, fuel and currency movements. United Breweries said it remains focused on growing the category while improving efficiency and maintaining supplies during the peak season.
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