Bira 91 Faces Crisis as Kirin Plans Exit; Founder Ankur Jain Seeks New Investor
Japan’s Kirin Holdings, a major player in the global beverage industry, is reportedly in discussions to exit its investment in B9 Beverages, the company behind the popular Bira 91 beer brand. This decision comes as B9 Beverages faces significant challenges, including a sharp decline in sales and rising debt. Kirin, which holds a 20.1% stake in B9 Beverages, is reassessing its global strategy and has engaged EY to assist in selling the debt it provided to the struggling brewer.
Kirin’s Investment and Strategic Shift
Kirin Holdings, one of Japan’s leading liquor companies, initially invested approximately $30 million in B9 Beverages in January 2021. This investment included a combination of debt and equity, with Kirin aiming to support the company’s growth in the Indian beer market. However, as of June 2025, Kirin’s stake in B9 Beverages stood at 20.1%, slightly ahead of founder Ankur Jain’s 17.8%. The shift in Kirin’s strategy reflects a broader trend among major beverage companies to divest from certain alcoholic beverage assets. Alongside Kirin, other significant investors in B9 Beverages include Peak XV and Sofina, holding 14.6% and 6.4% stakes, respectively.
The decision to explore an exit comes amid a reevaluation of Kirin’s international operations. The company has previously divested from various ventures, including a bottled water joint venture in China and a brewery partnership in Myanmar. Recently, Kirin has also put its Four Roses bourbon brand on the market for $1 billion, indicating a clear pivot towards health and wellness sectors.
B9 Beverages Faces Financial Struggles
B9 Beverages has encountered severe operational challenges, particularly following a significant business disruption last year. The company changed its legal name from B9 Beverages Private Limited to B9 Beverages Limited as part of its initial public offering (IPO) plans. This transition required the re-registration of products across various state excise departments, leading to a disruption of 4 to 7 months and necessitating substantial inventory write-offs.
The financial strain on B9 Beverages has been exacerbated by high fixed costs associated with the commissioning of four breweries between 2015 and 2019. This expansion made it difficult for the company to compete effectively, especially as rivals adopted aggressive pricing strategies. Consequently, B9 Beverages reported a net loss of Rs 748 crore for FY24, with sales plummeting by 22% year-on-year to Rs 638 crore. The company’s debt has surged to Rs 1,000 crore, and existing investors are hesitant to inject further capital, creating tensions among stakeholders.
Market Outlook and Future Prospects
Despite the challenges faced by B9 Beverages, the Indian beer market presents significant growth potential. According to research firm Imarc, the market is projected to reach Rs 802.5 billion by 2033, growing at a compound annual growth rate (CAGR) of 6.72% between 2025 and 2033. The market was valued at Rs 444.6 billion in 2024, driven by changing consumer lifestyles, increasing brand awareness regarding premium and imported beers, and a rise in beer consumption among millennials during social and cultural events.
Innovations in flavor and packaging are also contributing to market expansion, indicating that there remains a demand for diverse beer offerings in India. However, for B9 Beverages to capitalize on this growth, it will need to address its financial challenges and stabilize its operations. The ongoing discussions with Kirin and other investors will be crucial in determining the company’s future direction and ability to navigate the competitive landscape of the Indian beer market.
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