Why You Can’t Find Bira91 Anymore – The Inside Story

Summary

Beer 91, launched in 2015 by Ankur Jane, disrupted India's beer market with its craft beers, quickly becoming a popular choice for young, urban drinkers. Despite initial success, a corporate decision to change the company's name triggered a major setback, causing a sales freeze and significant losses. However, the company is determined to bounce back, focusing on local manufacturing, expanding distribution, and securing new investments. With plans for a 2026 IPO, Beer 91 aims to overcome its challenges and reclaim its place in the market. Will it succeed? Time will tell.

Takeaways

• 😀 The Indian beer market is valued at 444 billion rupees and is projected to nearly double by 2035.
• 😀 Kingfisher has dominated the Indian beer market for over a decade, holding more than 50% market share.
• 😀 Bira 91 entered the market in 2015, disrupting the beer industry by offering a premium craft beer alternative.
• 😀 Ankur Jain, inspired by his experience with craft beers in the US, launched Bira 91 to cater to a younger, urban demographic in India.
• 😀 Bira 91 introduced beers with unique flavors like White Tail (wheat beer) and Blonde Lager to appeal to consumers seeking new tastes.
• 😀 The brand's innovative packaging and design, including a rebellious logo and a fun monkey mascot, helped Bira 91 stand out in a crowded market.
• 😀 Bira 91 focused on distribution over traditional advertising, relying on word-of-mouth and targeted marketing through music festivals and events.
• 😀 By 2023, Bira 91 had gained significant market share, selling 9 million cases annually and expanding to 18 countries.
• 😀 In 2024, a corporate decision to drop the word 'Private' from the company name led to regulatory issues, causing a halt in sales and financial losses.
• 😀 The regulatory freeze resulted in a 22% revenue drop, with key markets like Delhi and Andhra Pradesh becoming unreachable, allowing competitors to seize the opportunity.
• 😀 Despite the setback, Bira 91 is fighting back by raising capital, expanding local production, and aiming to double its production capacity in 2025.

Q & A

What is the current size of the beer market in India, and what is its projected growth by 2035?

The beer market in India is valued at around 444 billion rupees and is expected to nearly double by 2035.

Which brand has dominated the Indian beer market for over a decade?

Kingfisher has consistently captured more than 50% of the Indian beer market over the last 10 years.

What was the innovative change introduced by Beer 91 in the Indian beer market in 2015?

Beer 91 revolutionized the market by offering craft beers with colorful branding, appealing to the younger, aspirational demographic in India.

How did Ankur Jane's experience in the US influence his decision to enter the Indian beer market?

Ankur Jane's exposure to the craft beer culture in the US inspired him to introduce premium craft beers in India, recognizing a gap in the market for non-mass-produced, quality beers.

What are craft beers, and how do they differ from mass-produced beers?

Craft beers are non-mechanized, small-batch beers made in traditional breweries. They are known for unique flavors, and consumers are often more aware of their ingredients and origin, unlike mass-produced beers.

What was the initial challenge that Beer 91 aimed to address in the Indian beer market?

Beer 91 sought to bridge the gap between strong, bitter, mass-produced beers and expensive imported options by offering high-quality, flavorful craft beers at an accessible price.

How did Beer 91 use branding and design to differentiate itself in the market?

Beer 91's branding focused on premium quality with a distinctive design featuring a reversed 'B' in their logo to symbolize rebellion, and a playful monkey mascot that represented fun and mischief.

What was the marketing strategy Beer 91 used to grow its market share?

Beer 91 focused on word-of-mouth marketing by engaging directly with young, digitally savvy consumers through music festivals, pop-up events, and collaborations, rather than traditional advertising.

What major issue did Beer 91 face in 2024, and how did it impact the company?

In 2024, a corporate name change led to the need for re-registration of products across states, causing a sales freeze of 4 to 6 months, stock write-offs, and a 22% revenue decline, as distributors and retailers shifted to competitors.

What steps is Beer 91 taking to recover and grow after its recent setbacks?

Beer 91 is working to recover by raising structured debt from BlackRock, establishing new manufacturing partnerships, and investing in a brewery in Uttar Pradesh. They also plan to double production capacity and expand into over 600 towns and 20 countries in 2025.