Bira 91 acquires retail bar chain The Beer Cafe in all-stock deal
Bira 91 will acquire a retail presence through The Beer Cafe's 33 outlets, and the pub chain will receive support from the beer company in terms of supply chain and innovations.
admin
According to a report from The Economic Times on October 12, the largest alcohol retailer in India, The Beer Cafe, has been acquired by the Indian largest beer retail chain brand Bira 91 in an all-stock deal. Shares of Bira 91 will be given to investors in The Beer Cafe, including Rahul and Bineeta Singh, Mayfield, Granite Hill, and RB Investments.
The reported acquisition, which will turn the pub chain into a fully-owned subsidiary of Bira 91, comes at a time when dining out is experiencing double-digit growth after turning drastically around from pandemic-induced curbs and intermittent shutdown of bars and restaurants.
Through the 33 outlets of the Beer Cafe, domestic premium beermaker Bira 91 will acquire a retail presence, and the pub chain will receive support from the beer company in terms of supply chain and innovations.
According to Bira 91's chief executive Ankur Jain, this acquisition will allow the company to develop a direct-to-consumer platform specialising in beer and promote the expansion of beer culture in India.
The management team of The Beer Cafe, led by its creator and CEO Rahul Singh, will continue to oversee its operations and assume control of Bira 91's newly established restaurant division. Under the brand name Bira 91 Taproom, this is being scaled up as large-format, craft beer-focused stores.
The Beer Cafe will continue to provide a selection of beers at its locations, according to Singh. "Bira 91 will continue making investments in innovative beer and an efficient supply chain. Due to this, our scale, talent, and capabilities will all increase. Additionally, the group will handle all support functions, which will allow me to build Beer Cafe with greater emphasis, he added.
According to Singh, The Beer Cafe did not close any locations during the Covid-19 outbreak; instead, the stores only had temporary shutdowns in states where lockdowns were imposed.
Sequoia Capital India, Sofina of Belgium, and Kirin Holding of Japan are some of the current investors in Bira 91.according to regulatory filings,in 2020–21 the brand reported revenues of Rs 428.2 crore.
