Bira 91 Buys The Beer Cafe In All-Stock Deal
The Bira-Beer Cafe deal will give the brewer access to 33 Beer Cafe outlets in 15 cities.
B9 Beverages, the owner of Indian craft beer Bira 91, has agreed to buy The Beer Cafe in an all-stock deal, in one of its first major acquisitions that would give the brewer a retail presence amid the nation’s growing pub culture.
The deal makes the country’s largest alcobev chain a fully owned subsidiary of Bira 91, a company statement said. According to the terms of the agreement, Beer Café promoters Rahul and Bineeta Singh, and other investors Mayfield Fund, Granite Hill Capital Partners, Sharrp Ventures and RB Investments Pte Ltd., will get shares of the homegrown brewer.
“Bira 91, with this move, will strengthen its play in pubs and taprooms and build India’s first large-scale direct-to-consumer platform,” B9 Beverages said in the statement.
New Delhi-based B9 Beverages will get the pub chain’s 33 outlets in 15 cities across Tier 1, 2 and 3 cities at key locations, including malls, high street and transit hubs, as part of the deal.
The move comes amid a trend of "revenge dining" in the aftermath of a pandemic that shuttered restaurants and bars for nearly two years. According to a Dineout report, smaller towns are showing more than double the vengeance when it comes to resuming eating out.
Beer sales also exceeded pre-pandemic levels in the summer of 2022, Ankur Jain, founder and chief executive officer at B9 Beverages, had told BQ Prime in April.
Bira 91, the company said, will leverage its infrastructure, supply chain, experience, and expansion and innovation capabilities to further refine Beer Café’s strong operating model as it seeks to create “a novel beer culture in the country”.
“Both Bira 91 and Beer Café were conceived with the intent of evangelising and elevating the beer experience in the country, and with this acquisition, we together aim to catalyse the growth of beer culture in India,” Jain said.
Beer Café’s management with Founder CEO Rahul Singh at the helm will continue to lead the brand’s operations and take complete responsibility of the newly formed restaurant vertical, the statement said. The closing of the transaction is subject to customary terms and conditions as provided under the transaction agreements.
Bira 91's investors include Sequoia Capital, Belgium’s Sofina and Japan’s Kirin Holding. The brewer is present in more than 500 towns across 15 countries.