Bira 91 is a craft beer brand that resonates with India’s new generation. Be it its colorful branding or its signature product – craft beer, Bira 91 surely knows how to market to a young, enthusiastic audience. However, recently, a rebranding effort led to an inventory loss of INR 80 crore for the company. Yes, you read that correctly. What went wrong, and will Bira 91 be able to recover from these losses? Let’s explore!
Bira 91 Rebranding Gone Wrong
The company that produces Bira 91 changed its name from B9 Beverages Private Limited to B9 Beverages Limited (Ltd). This move comes ahead of the company’s 2026 Initial Public Offering (IPO). However, this move to slightly change the name cost the company crores in loss, including stalled sales and inventory loss.
As B9 Beverages Ltd planned to change its name, it triggered a regulatory hurdle. This forced the company to re-register its labels across multiple states. The result? The company noticed a 22% drop in sales – the sales volume fell from 9 million cases in the financial year 2023 to 6-7 million cases in the financial year 2024. B9 Beverages reported a net loss of INR 748 crore in 2023-24, surpassing its total sales of INR 638 crore. It attributed this loss to both the one-time inventory write-off and evolving state policies that impacted its key markets.
Ankur Jain from B9 Beverages stated that the company had to re-register labels over a 4-6 month cycle due to the name change. This resulted in almost no sales for several months as well as operational delays in key markets like Delhi NCR and Andhra Pradesh. Even though these markets contribute to over a third of Bira’s sales in India, the company was falling short – despite the constant demand for their products.
Also Read: Mumbai’s Late Checkout Is Here To Slow Down Your Bar Experience, One Drink At A Time
Bira 91’s 2026 IPO
The company plans to release its IPO in 2026 due to the ever-increasing competition from microbreweries, craft beer makers, as well as global brewers making their way into the Indian market. It stated that the beer market needs high capital expenditure and working capital allocation to grow, which is why B9 Beverages plans to raise fresh funds for its expansion.
Speaking of the IPO, here are key details that you need to know:
- Target Date: 2026
- Financial Advisor: Morgan Stanley
- Funding Boost: Bira 91 secured $25 million in external commercial borrowing from Kirin Holdings
View this post on Instagram
The Delhi-based company started a decade ago by importing its Hefeweizen-style beer from Belgium. Later, it shifted to local brewing for cost efficiency and eventually added about half a dozen third-party breweries to its roster. Despite the financial setback, B9 Beverages lingers on optimism about its recovery and growth in the Indian market. It anticipates a turnaround and expects operational profitability by the next quarter.
Also Read: Bizarre Hangover Cures That Surprisingly Work
Summing Up
Bira 91’s rebranding attempt highlights the hidden risks of corporate rebranding, especially in a space like alcoholic beverages. The company reported heavy losses and operational mismanagement due to a rebranding gone wrong ahead of its ambitious 2026 IPO. Whether the brand performs well ahead of its 2026 IPO or not is yet to be seen, but we can only hope that it regains market confidence and bounces back with a bang!
