Restaurant India News: Kirin’s Planned Exit From Bira 91 Signals a Major Shift in India’s Craft Beer Market

Japan’s Kirin Holdings, the largest shareholder in Bira 91 parent B9 Beverages, is negotiating with founder Ankur Jain to withdraw its investment, according to people familiar with the matter. The information was first reported by ET.

Sources said the Japanese beverage major has informed the founder that it wants to step away and allow him to bring in a new strategic investor. Kirin, counted among Japan’s top three liquor groups alongside Asahi and Suntory, owned a 20.1 percent stake in B9 Beverages as of June 2025, ahead of Jain’s 17.8 percent holding.

When Kirin entered B9 Beverages in 2021, the investment was viewed as a long-term strategic alignment. However, shifts in its global roadmap have pushed the company to reconsider certain alco-bev positions. Discussions around an exit reportedly continued through October. Jain has also been communicating with Kirin’s Tokyo leadership for the past three months.

“All options are on the table,” Jain told. Kirin did not respond to emailed questions, and sources added that EY is advising on the sale of debt Kirin had extended to B9 Beverages in two rounds.

The company had first invested around USD 30 million in early 2021 through a mix of debt and equity. It later issued another loan jointly with Tiger Pacific.

B9 Beverages has faced operational and financial setbacks over the past year. A change in legal status from “B9 Beverages Private Limited” to “B9 Beverages Limited”, ahead of a planned IPO, forced the brand to re-register products with state excise departments. This disrupted business for 4–7 months and triggered an inventory write-off.

The company also reported challenges due to high fixed costs, as it had set up four breweries between 2015 and 2019. With price-focused competition increasing, B9 found it difficult to match market shifts, resulting in a dip in sales and rising losses. Servicing debt added further pressure.

The company posted a net loss of Rs 748 crore in FY24, with sales declining 22 percent year-on-year to Rs 638 crore. FY25 financials are still pending. Total debt has risen to Rs 1,000 crore amid a lack of fresh funding from existing investors.

This situation has reportedly led to disputes between the founders and investors such as Peak XV, Sofina, and debt investor Anicut Capital. According to sources, Kirin wrote down the value of its equity and debt in B9 Beverages in February.

Kirin’s broader investment strategy has been shifting toward health and wellness categories. Reports suggest the company has put its Four Roses bourbon label up for sale for USD 1 billion. In recent years, it has exited a Chinese bottled water joint venture and later a brewery partnership in Myanmar. The company has also deployed USD 1.5 billion into Japanese supplement maker Fancl.

Other notable shareholders in B9 Beverages include Peak XV with 14.6 percent and Sofina with 6.4 percent, with the remaining held by financial investors and family offices.

India’s beer category continues to show long-term growth potential despite the challenges at B9. A study by Imarc projects the market will reach Rs 802.5 billion by 2033, growing at a CAGR of 6.72 percent between 2025 and 2033, up from Rs 444.6 billion in 2024. According to the report, demand is being supported by evolving consumer lifestyles, interest in premium and imported beers, and rising consumption among millennials at social gatherings. Innovations in flavour and packaging are also contributing to the sector’s momentum.