Bira 91, once India’s fastest-growing craft beer brand, is facing a serious crisis. The brand, run by B9 Beverages Private Limited, became popular for its quirky image and strong social media presence. By 2023, it was preparing for a major IPO.
In January 2024, the company changed its name to B9 Beverages Limited to meet IPO rules. What seemed like a small step created big problems.
Regulatory Roadblocks and Distribution Halt
After the name change, authorities in many states treated B9 Beverages Limited as a new company. Labels, packaging, and licences still had the old name. This caused delays because the company had to get new approvals for every beer variant.
As a result, Bira 91 could not be sold in many places. Warehouses were full of unsellable stock, leading to a cash flow crisis. The brand’s urban customers missed seeing it on store shelves and in bars, affecting sales.
Financial Impact
The crisis hit Bira 91’s finances hard. Revenue for 2024 fell to INR 638 crore from INR 824 crore in 2023, a drop of almost 22%. The company posted a net loss of INR 748 crore. Plans for the IPO have been put on hold, and the brand is struggling to regain its position.
Production started again in early 2025 after most approvals were cleared. However, the brand has lost its market momentum. Competitors have taken advantage of Bira 91’s absence from the shelves.
Employee Unrest and Leadership Issues
Over 250 employees reportedly asked for the removal of CEO Ankur Jain. They claimed salaries were unpaid for up to six months. Employees said management was not transparent about finances, adding to the crisis.
Investor D. Muthukrishnan noted on social media that Bira 91’s story shows how even a small procedural mistake can bring down a successful company. “Bira 91 was one of India’s most promising start-ups, growing rapidly as a popular craft beer brand. Yet a simple name change—from B9 Beverages Private Limited to B9 Beverages Limited—triggered a chain of problems. States treated it as a new company, banning sales and demanding fresh approvals for labels, products, and licences. Regulatory hurdles, halted sales, and internal conflicts pushed the company to the edge,” he said.
He added that while the situation may seem unfair, it reflects the reality of doing business in India. “Procedures, compliance, and proper documentation are crucial. Rules are complex, and assumptions can backfire. Expert legal advice is essential before making even small changes.”
Bira 91 was one of the successful start-up stories of last decade. It is a popular craft beer brand. They were growing so well. Reality is strange than what you can imagine. A procedural goof up has lead to whole company being collapsing and the founder now being forced even to…
— D.Muthukrishnan (@dmuthuk) October 10, 2025
Looking Ahead
Even with production restarted, Bira 91 faces a tough path to recovery. The company needs to rebuild consumer trust, fix employee issues, and regain market share. Analysts say strong management and clear communication will be key.
While Bira 91 still has fan support, regaining its previous market position will take time. Success will depend on careful planning, marketing, and resolving internal problems.
Vivek Dev Jacob
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