Kirin Holdings, a Japanese beverages group, is investing $25 million (approximately INR 205 crore) to acquire an additional minority stake in B9 Beverages, the manufacturer of craft beer Bira 91 and owner of the Beer Cafe pub chain, according to executives familiar with the development.
As per a report from ET, executives, who preferred to remain anonymous, stated that Kirin’s acquisition of fresh shares will increase its ownership in B9 Beverages beyond the current approximate 20%. Additionally, another American financial investor is nearing a $25 million investment for a further stake in B9 Beverages, with closure anticipated in the upcoming weeks, as mentioned by one of the aforementioned executives.
The investor remains unidentified. Fresh investments totaling $50 million (INR 410 crore) are being made at a pre-money valuation of $600 million. In late 2022, Tokyo-listed Kirin Holdings injected INR 570 crore into the beer company, elevating its stake to 20% and valuing the beer maker at $600 million. Established in 2015, B9 Beverages retails craft, lager, and strong beer under brands like Bira White, Gold, and Boom. It operates across 24 countries and manages six breweries. Ankur Jain, CEO of B9 Beverages, and Rahul Singh, CEO and founder of The Beer Cafe, were unavailable for comment.
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Sequoia Capital and Belgium’s Sofina are also among the investors of B9 Beverages. This development comes amid double-digit demand projections for beer, driven by younger and newer consumers, as well as the introduction of new craft brands and flavors aiding the category’s growth. The latest funding round, marking the third fundraising effort for B9 Beverages within a year, will be allocated towards expanding breweries, enhancing global retail presence, and further developing Bira 91’s Taproom pubs, according to a second executive mentioned above.
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Over the past fifteen months, Kirin Holdings and Japan’s MUFG Bank have each invested $80 million in B9 Beverages. According to a report by IMARC, India’s beer market reached INR 41,407 crore in 2023 and is projected to achieve sales of INR 78,120 crore by 2032, driven by a surge in craft breweries and an increasing preference for locally brewed beers.
Major players in the Indian beer market comprise United Breweries, owned by Heineken, known for its Kingfisher brand; Carlsberg’s Tuborg; and Ab InBev, the owner of Budweiser, Hoegaarden, and Corona. In December 2023, reports indicated that B9 Beverages was in discussions with potential investors to secure INR 400 crore in fresh funding from both existing and new investors.
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According to filings with the Registrar of Companies, B9 reported revenues of INR 824 crore for the fiscal year 2023, marking a 14.6% increase from INR 719 crore in the previous fiscal year. B9 holds an 11% market share in the premium beer segment.