The Fall of Bira 91: How a Name Change Triggered the Collapse of India’s Coolest Beer Brand
The Fall of Bira 91: How a Name Change Triggered the Collapse of India’s Coolest Beer Brand
A procedural slip during a rebranding move led to halted sales, mounting losses, and a leadership exit at the once-thriving craft beer company
In a dramatic turn of events, India’s beloved craft beer brand Bira 91, once hailed as the country’s “coolest beer,” has seen a sharp downfall — all reportedly triggered by a seemingly minor change in its corporate name.
Investor D. Muthukrishnan shared the details in a viral social media post on Friday, explaining how a routine procedural move turned disastrous. The company, B9 Beverages Private Limited, had been gearing up for a much-anticipated IPO in late 2023. In January 2024, to comply with listing regulations, it officially dropped the word “Private” and became B9 Beverages Limited.
However, while the paperwork was updated with the Registrar of Companies, the brand’s packaging, labels, and distribution licenses continued under the old name. This mismatch triggered an unexpected crisis.
“All hell then broke loose,” wrote Muthukrishnan. “All the states immediately banned the sale of Bira 91, treating the new name as a different legal entity. They demanded fresh legal approvals, label clearances, and new licenses for every single product variant.”
Bira 91 was one of the successful start-up stories of last decade. It is a popular craft beer brand. They were growing so well. Reality is strange than what you can imagine. A procedural goof up has lead to whole company being collapsing and the founder now being forced even to…
— D.Muthukrishnan (@dmuthuk) October 10, 2025
The consequences were swift and devastating. Overnight, distribution was halted across multiple states, leaving inventory worth crores of rupees unsold in warehouses. Between July and September 2024, Bira’s sales volumes reportedly plunged by around 25% year-on-year.
Financially, the fallout was severe. The company’s FY2024 revenue dropped to approximately ₹638 crore, down from ₹824 crore in FY2023. It also reported a net loss of ₹748 crore, one of the worst in its history.
Though Bira 91 has since secured renewed approvals in most states and resumed production gradually in early 2025, industry experts believe the damage has been done. Its IPO plans have been shelved indefinitely, and the brand’s once-strong momentum in the Indian craft beer market has faded.
Muthukrishnan pointed to India’s bureaucratic complexity as the underlying reason behind the debacle. He referenced former Diageo India CEO Hina Nagarajan, who had once decided against renaming United Spirits to Diageo India Limited to avoid such disruptions.
“Though what happened to Bira is extremely unfair, you’ve to accept the reality of India,” Muthukrishnan concluded. “Procedures, compliance, and proper documentation are extremely important. The rules are so complex that you should never skip expert advice, what seems simple can completely backfire.”
