India: Craft beer maker Bira name change leads to Rs80 crore sales loss

B9 Beverages Ltd, the parent company of popular craft beer brand Bira 91, has faced a significant financial setback due to a seemingly simple yet costly name change. As part of its preparations for a 2026 public listing, the company transitioned from B9 Beverages Private Ltd to B9 Beverages Ltd, triggering an extensive re-registration process that halted sales for months. This disruption led to an Rs 80 crore inventory write-off and contributed to a 68 per cent surge in losses for FY24, according to a report by The Economic Times.

The New Delhi-based company’s net loss widened to Rs 748 crore for the fiscal year ending March 2024, surpassing its total revenue of Rs 638 crore, which marked a 22 per cent decline from the previous financial year. The company attributed this loss to both the one-time inventory write-off and evolving state policies that impacted its key markets.

B9 Beverages founder Ankur Jain explained that the mandatory re-registration of product labels and state approvals took 4-6 months, rendering the brand unavailable in key regions despite ongoing demand.

“Due to the name change, there was a 4-6 month cycle where we had to re-register labels and re-apply across states, which resulted in literally no sales for several months despite demand for our products. While availability dwindled, we also saw policy and route-to-market changes in Delhi NCR and Andhra Pradesh, which account for more than a third of our sales,” said Jain.

The disruption saw sales volume drop to 6-7 million cases in FY24, down from nine million cases in FY23. In addition, increased competition from microbreweries, craft beer brands, and global brewers launching premium products further squeezed B9 Beverages’ market position.

Bira 91, initially launched as an imported Belgian wheat beer before shifting to local brewing for cost efficiency, has expanded significantly over the years. However, the company’s rapid growth has also placed financial strain on its operations.

According to B9 Beverages’ latest annual report, its auditor highlighted negative cash flow of Rs 84 crore and accumulated losses of Rs 1,904 crore, raising concerns about long-term financial sustainability. The report warned that these figures indicate “material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern.”

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