How simple name change caused beer brand Bira ₹80cr loss
What's the story
Bira beer's parent company B9 Beverages Ltd has taken a huge financial hit of ₹80 crore, all because of a simple name change in India. The firm recently changed its name from 'B9 Beverages Private Ltd' to 'B9 Beverages Ltd,' a move that created several compliance issues and halted sales for months. This disruption caused a 20% drop in sales and increased losses by 68%.
Financial impact
Financial performance and market challenges
In FY24, Bira posted a net loss of ₹748 crore, exceeding its total sales of ₹638 crore. The number represents a 22% decline from the last fiscal year. The company's founder Ankur Jain attributed the decline to the re-registration process after the name change which hindered sales for months despite the demand for the product.
Market outlook
Future prospects and competition
Despite the financial setback, Bira is hopeful for the future. The company said growth has resumed since the third quarter and it expects to make an operating profit by next quarter. However, it also acknowledged the rising market pressure from microbreweries, craft beer makers, and international brewers introducing premium products into the Indian market.
Brand evolution
Bira's journey and industry perspective
Bira, which began a decade ago by importing the Hefeweizen-style beverage, later transitioned to Indian brewing for cost-effectiveness. It then scaled by collaborating with several third-party breweries. Vinod Giri, Director General of Brewers Association of India (BAI), emphasized that emerging brands like Bira contribute immensely to the sector with innovative products and experimental ways.