Bira 91 loses control of The Beer Cafe to investors amid cash crisis

Japan's Kirin Holdings and lender Anicut Capital have taken over The Beer Cafe from Bira 91's parent firm after it defaulted on loans, deepening the financial troubles of the craft beer maker

Bira 91’s parent company, B9 Beverages, has lost control of its pub business, The Beer Cafe, after its largest shareholder, Kirin Holdings of Japan, and its lender, Anicut Capital, took over shares pledged as collateral, according to a report by The Economic Times. The move comes as the Indian craft beer maker struggles with steep losses and mounting debt.

 

According to recent filings with the Registrar of Companies, Kirin Holdings and Anicut Capital have jointly taken possession of the shares in BTB (Better Than Before), the company that operates The Beer Cafe chain of 42 outlets, along with other food and beverage ventures.

 

The restructuring effectively removes B9 Beverages from any ownership stake in BTB.

 

B9 Beverages challenges lender action in court

 

Founder and CEO Ankur Jain has disputed the takeover, insisting that BTB “remains a wholly owned subsidiary” of B9 Beverages. Jain said the company has taken the matter to court, alleging that some lenders acted in violation of contractual terms, the news report said.

 

The Delhi High Court, on October 17, issued an interim order restricting Anicut Capital from selling or creating any third-party interest in BTB shares until the case is resolved.   

 

Deepening financial strain at B9 Beverages

 

B9 Beverages has been under growing financial pressure. In FY24, the company reported a net loss of ₹748 crore on revenue of ₹638 crore, alongside negative cash flows of ₹84 crore. The company’s total losses reached ₹1,904 crore, while liabilities exceeded assets by over ₹619 crore as of March 31, 2024.

 

Sales volumes also fell sharply to 6-7 million cases in FY24 from 9 million in the previous year.

 

Kirin Holdings currently owns about 20.1 per cent of B9 Beverages, while Peak XV Partners holds 14.6 per cent. Jain and his family together control around 17.8 per cent, with the remainder held by smaller investors and family offices.

 

B9 Beverages had acquired BTB in 2022 through an all-stock transaction. BTB contributes roughly 35 per cent of the beer maker’s total revenue and manages multiple hospitality and beverage ventures, including The Beer Cafe, Bira 91 Taprooms, Thrsty (cloud bar), Instacrave (cloud kitchen) and Burger Brewery.

 

Employee unrest over unpaid salaries

 

The company has also been facing internal unrest. Earlier this month, over 250 employees petitioned the board and key investors, demanding a change in leadership and the removal of CEO Ankur Jain.

 

The petition, filed after a company-wide town hall in September, cited governance lapses, lack of transparency, and delays in salary payments. Employees also highlighted pending vendor dues and legal disputes with creditors as reasons for their concern.