Downfall of Bira beer: How a simple name change collapsed ‘India’s coolest beer brand’ Bira 91 from alcohol market

Bira 91 was once the most popular name on India’s beer shelves, known for its fun bottles, bold marketing, and youthful image. But what started as a success story has now turned into a lesson about growing too fast and struggling with tough rules and finances. Started in 2015 by Ankur Jain, Bira 91 quickly became a symbol of India’s new craft beer culture. Its cool branding, creative ads, and wide availability made it a hit among young people in cities. The brand expanded quickly, becoming one of the fastest-growing beer companies in India.

By 2023, Bira 91 had reached an impressive milestone, earning Rs. 824 crore in revenue and selling 9 million cases across 550 towns in India and 18 countries worldwide, according to a report by Financial Express.

However, Bira’s popularity wasn’t just about numbers it was about culture and attitude. The brand stood out with its colourful bottles, smart marketing, and strong presence in bars and restaurants. In 2022, Bira 91 even bought The Beer Café, a popular pub chain, giving it access to even more bars and restaurants.

But in the past year and a half, the company has faced several challenges from government regulations and financial strain to internal issues. The company reported a Rs. 748 crore net loss in FY24, surpassing its total revenue of Rs. 638 crore for the year.

But what went wrong with Bira 91?

The company’s troubles began when it made a small change – removing the word “Private” from its name. In 2023–24, B9 Beverages Private Limited officially became B9 Beverages Limited, but this simple legal change caused a chain reaction that almost brought the company to its knees.

Investor D. Muthukrishnan explained the situation on X (formerly Twitter), saying, “Bira 91 was one of the most successful start-up stories of the past decade. They were doing great. But a small paperwork mistake caused chaos, states treated the new company name as a completely different business. Now, the founder is being pushed out by employees.”

Once the new name was registered, state governments stopped sales of Bira 91, saying the company needed to apply for fresh product and label approvals, new licenses, and separate registrations for every beer variant. This administrative mess led to months of lost sales and huge financial losses.

According to an Economic Times report, the company had to write off about Rs. 80 crore worth of unsold stock, while sales dropped by 22 per cent and losses jumped by 68 per cent in FY 2023–24. Bira 91 ended the year with a net loss of Rs. 748 crore, even higher than its total revenue of Rs. 638 crore.

To make things worse, production was halted in July, and BlackRock, which had been in talks to invest Rs. 500 crore in the company, reportedly backed out after the crisis deepened.

IPO Plans Still on Track for 2026

Even after facing major financial challenges, cis not giving up on its dream of going public. The company is still planning to launch its initial public offering (IPO) in 2026.

According to reports, CEO Ankur Jain has confirmed that the IPO plans remain unchanged. To prepare for the listing, Morgan Stanley has been appointed as the advisor for the pre-IPO process, helping B9 Beverages streamline its operations and get ready for the public markets.

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