Bira 91 Acquires Pub Chain ‘The Beer Cafe’ In An All-Stock Deal

Indian beer maker Bira 91 has acquired leading domestic alco-beverage chain ‘The Beer Cafe’ in an all-stock deal for an undisclosed amount, days after it acquired UP-registered brewery Kamakhya Beer & Bottling Private Limited in a share swap deal. 

With the acquisition, the New Delhi-based beer manufacturer is looking to strengthen its play in pubs and taprooms while also aiming to build India’s first large-scale beer-focused direct-to-consumer platform. 

The deal would not only help Bira 91 expand its taproom experience and penetrate deeper into the restaurant space but also strengthen The Beer Cafe’s offerings as Bira 91’s newly formed restaurant vertical, the companies said in a joint statement.

Bira 91 will leverage its infrastructure, experience, and expansion capabilities to further refine The Beer Cafe’s operating model.

Post the acquisition, The Beer Cafe’s management team, with its CEO and founder Rahul Singh at the helm, will continue to lead the brand’s operations and take complete responsibility for running the newly formed restaurant vertical, Bira 91 and The Beer Cafe said in the statement.

“We have a strong operating model, and by leveraging on the strengths of Bira 91, we will be able to enhance the consumer experience and take the brand to newer heights. The neutrality of The Beer Café brand offering the most variety of beers remains intact,” Singh said.

Founded in 2015 and backed by Sequoia Capital India, Sofina of Belgium, and Kirin Holding of Japan, Bira 91 has built a diverse portfolio of beers and has its flagship taproom in Bengaluru. Bira 91 claims to be present in 500 towns and cities spread across 15 countries, and it brews its beers across four breweries in India. It has so far raised $210 Mn in funding.

On the other hand, pub chain The Beer Cafe was started in 2012 and has presence across 15 Tier 1, 2, 3 cities with 33 outlets.

Earlier this week, Inc42 exclusively reported that the acquisition of Kamakhya Beer, a subsidiary of Chhattisgarh Distilleries Private Limited (CDL) which owns Indian No.1 Magnum Whiskey, Red Indian Rum, among other brands, would help Bira 91 expand its production capacity and cater to the increasing consumer demand across the region.

The announcement of Bira 91’s second deal in a week comes at a time when the startup is reportedly in talks to raise $70 Mn from its existing investor and Japanese beverages firm Kirin Holdings.

Bira 91 competes with the likes of India’s Kingfisher, Danish brewing companies like Tuborg and Carlsberg, as well as Belgium’s Anheuser-Busch InBev, which has a significant presence in India.

Bira 91 narrowed its loss by 30% to INR 211 Cr in FY21. However, it witnessed a minor decline in its total revenue to INR 462.8 Cr in the fiscal year from INR 466 Cr reported in FY20.

Pegged at INR 350 Bn in 2021, the India beer market is expected to reach a value of INR 580 Bn by 2027, exhibiting a compound annual growth rate (CAGR) of 8.3% during 2022-2027, as per a report.