B9 Beverages' Largest Shareholder and Lender Acquire The Beer Cafe Subsidiary Amid Cash Crunch

Strategic Insights -

B9 Beverages, the maker of Bira 91 beer, is facing a cash crunch that has led to its largest shareholder, Kirin Holdings of Japan, and lender Anicut Capital acquiring the wholly-owned subsidiary, The Beer Cafe, through the pledged shares of BTB (Better Than Before). This development comes as the company struggles with dwindling sales, reported negative cash flow of ₹84 crore in FY24, and accumulated losses of ₹1,904 crore. BTB operates 42 pubs under The Beer Cafe chain, and the new capital structure leaves nothing for B9 Beverages.

Key Takeaways:

  • B9 Beverages' largest shareholder, Kirin Holdings, and lender Anicut Capital have taken possession of the pledged shares of BTB, operating 42 pubs under The Beer Cafe chain.
  • The acquisition was made to secure The Beer Cafe in case B9 Beverages lands in the bankruptcy court.
  • The new capital structure leaves nothing for B9 Beverages, and the company has challenged the actions by its lenders in court.
  • B9 Beverages had pledged the shares as collateral against loans, and Kirin Holdings is also a participant in its external commercial borrowings.
  • BTB contributed close to 35% of B9 Beverages' consolidated revenue in fiscal 2025.
  • The Beer Cafe and BTB founder and CEO Rahul Singh confirmed the change of ownership, stating that the company will continue to focus on innovation, quality, and responsible growth.
  • B9 Beverages has challenged Anicut Capital's action in the Delhi High Court, resulting in an interim order restricting Anicut from selling or creating third-party interests on BTB shares.

Statistics:

  • B9 Beverages reported a negative cash flow of ₹84 crore in FY24.
  • The company's accumulated losses by March 31, 2024, stood at ₹1,904 crore.
  • Its liabilities exceeded assets by ₹619.6 crore as of March 31, 2024.
  • The company's net loss for fiscal 2024 stood at ₹748 crore, with revenue of ₹638 crore.
  • Sales volume fell to 6-7 million cases from 9 million cases in FY23.

Sources:

  • ET (Economic Times)
  • Times Content (reprint rights)
  • B9 Beverages' filings with the registrar of companies
  • BTB's filings with the registrar of companies
  • An excerpt from the Times Content website.