In the rapidly changing realm of consumer products, a brand’s identity is crucial to its triumph. Just lately, Bira 91, a top craft beer brand in India, suffered huge financial blows because of what appeared to be a small alteration—removing the word “Private” from its official company name. This move led to a loss of ₹80 crore in sales and a jump in operational hurdles.
The Rebranding Choice
As Bira 91 prepares for a public listing in 2026, it transitioned its legal entity from ‘B9 Beverages Private Ltd’ to ‘B9 Beverages Ltd’. This decision, however, created an unexpected obstacle—the company had to re-register product labels in various states, resulting in a months-long sales suspension.
“Due to the name change, there was a 4-6 month cycle where we had to re-register labels and re-apply across states, resulting in literally no sales for several months despite demand for our products.”
— Ankur Jain, Founder of Bira 91
Financial Impact
The rebranding oversight resulted in serious financial repercussions:
| Factor | Impact |
|---|---|
| Inventory Write-off | ₹80 crore |
| FY24 Net Loss | ₹748 crore (68% rise) |
| Total Sales Drop | ₹638 crore (-22% YoY) |
| Sales Volume Decline | From 9M cases to ~6-7M cases |
With losses surpassing total revenue, Bira 91 found itself in a challenging position, struggling to recover from these unexpected setbacks.
Also Read: Zomato changes its name to ‘Eternal’ as board approves renaming
Operational Issues & Market Pressures
While the company faced internal challenges, competition increased:
- The craft beer market grew, with additional microbreweries and premium international brands entering India.
- Supply chain disruptions exacerbated the financial blow.
- Consumer preferences changed, causing Bira 91 to lose market share due to ongoing product shortages.
Insights for Businesses
This case illustrates several significant concerns for firms considering rebranding:
- Know the Rules – Make sure you are familiar with all the compliance and regulatory issues at stake before you go about renaming anything.
- Preparation for Risks – Maintaining some cash in reserve is necessary to minimize any sudden financial jolts.
- Strategic Timing – Rebrand during a period when the market is stable in order to shun drastic actions.
Key Takeaways
Bira 91’s rebranding issue serves as a cautionary tale for companies in the middle of big changes. Even small tweaks to a brand can cause some serious financial and operational headaches. Businesses really need to be prepared for bumps in the road, plan things out meticulously, and keep operations running smoothly before pulling the trigger on a rebrand.
For more insights, read the full story on The Times of India
