Bira’s Crores Worth Blunder: How a Word-Change Hindered The Brand’s Success
Bira’s case is an insane tale of ambition and beer that has lost its fizz. Established in 2015, Bira 91 entered the craft beer market in India with its fun bottles and Insta vibes. By the end of FY23, it reached ₹800 crore in revenue and sold millions of cases in different countries. However, a single misstep made the growing company a case study.
A Simple Name Change Gone Wrong
B9 Beverages Private Limited is the parent company of Bira. Preparing an IPO in 2023, to appear more professional, they decided to omit the word Private in their name. Thus, in January 2024, they became B9 Beverages Limited. Sounding like a quick paper fix, it was aimed to prepare the brand IPO-wise.
Backed by large firms like Kirin Holdings of Japan and Peak XV Partners, they believed they were making a profound move to reach hundreds of millions worth of valuation.
The Alcohol Laws in India: A Maze of Regulations.
However, it didn’t turn out as expected, and things got messier as the Indian alcohol laws are just like a riddle. Every state considers even a minute name change like the establishment of a brand-new company.
The laws required Bira to reapply to all the states’ excise licenses, obtain new label approval, and reregister all its products. And with that, there was zero grace period for the old stock! All the cans and bottles of the old name became instantly illegal to sell.
The Costly Hangover
The fallout was brutal. Millions of liters of good quality beer were sitting stagnant in warehouses, and were getting old by the day. There were four to six months of zero sales, and 80 crore of beer was thrown away.
Ripple Effects and Rebellion.
The chaos didn’t stop there. The employees accused the founder of corporate governance failures, transparency issues, late payments, and unpaid bills. For six months, the company has been withholding salaries, provident fund payments have been frozen since March 2024, and much more, and the total dues have reached 50 crore.
Conclusion
The story of Bira is a wake-up call: in the Indian alcohol business, paperwork can be more deadly than a hangover. A single misstep cost Bira crores, market share, and morale. However, they are gawking at 132 million of new money in fresh capital to recover in the froth. To startups in search of expansion, this is screaming: Read the fine print, or you are going to flatten your empire.
