Restaurant India News: Bira 91 Faces Setback as Lenders Take Over Its Pub Chain, The Beer Cafe

B9 Beverages, the parent company of Indian craft beer brand Bira 91, 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 that were pledged as collateral. The move, highlights the company’s ongoing struggle with heavy financial losses and growing debt obligations.

According to filings with the Registrar of Companies, Kirin Holdings and Anicut Capital have jointly taken possession of shares in BTB (Better Than Before), the entity operating The Beer Cafe chain of 42 outlets along with other food and beverage businesses. The restructuring effectively removes B9 Beverages from any ownership position in BTB.

Despite the takeover, B9 Beverages Founder and CEO Ankur Jain has contested the move, maintaining that BTB “remains a wholly owned subsidiary” of the company. Jain confirmed that B9 Beverages has challenged the lender’s actions in court, alleging breaches of contractual obligations. The Delhi High Court, on October 17, issued an interim order preventing Anicut Capital from selling or transferring BTB shares to third parties until the case is resolved.

The legal dispute comes at a time when B9 Beverages is under serious financial strain. In FY24, the company posted a net loss of Rs 748 crore on revenue of Rs 638 crore, alongside negative cash flows of Rs 84 crore. Its total accumulated losses stood at Rs 1,904 crore, with liabilities exceeding assets by over Rs 619 crore as of March 31, 2024. Sales volumes also declined significantly, dropping to 6–7 million cases in FY24 compared to 9 million the previous year.

Kirin Holdings currently owns about 20.1 percent of B9 Beverages, while Peak XV Partners holds 14.6 percent. Jain and his family together control approximately 17.8 percent, with the rest distributed among smaller investors and family offices.

B9 Beverages had acquired BTB in 2022 through an all-stock transaction. The business contributes nearly 35 percent of the company’s total revenue and oversees several hospitality and beverage ventures, including The Beer Cafe, Bira 91 Taprooms, Thrsty (cloud bar), Instacrave (cloud kitchen), and Burger Brewery.

The situation has also sparked unrest within the company. Earlier this month, more than 250 employees filed a petition addressed to the board and major investors, calling for the removal of CEO Ankur Jain and a change in leadership. The petition, which followed a company-wide town hall held in September, cited concerns over governance lapses, lack of transparency, and delays in salary payments. Employees also referred to pending vendor dues and ongoing legal disputes with creditors as reasons for their dissatisfaction.

As the matter unfolds, B9 Beverages faces dual challenges—stabilizing its financial position and addressing internal discord—while navigating the legal proceedings surrounding its lost control of The Beer Cafe. The outcome will likely determine the company’s next chapter in India’s fast-evolving craft beer and hospitality sector.