Kirin-backed brewery Bira 91 has concluded two deals within two days.
On Monday, the New Delhi based beer maker has acquired Kamakhya Beer & Bottling Private Limited, a local brewery located in Bijnor, Uttar Pradesh, India in a share swap deal. Seller is Kamakhya’s parent company, Chhattisgarh Distilleries Private Limited (CDL), an Indian liquor company that owns brands such as Indian No.1 Magnum Whiskey, Red Indian Rum, and Palm Beach Whiskey.
In exchange for all 10,000 shares in Kamakhya Beer, CDLwill receive INR 226 million (USD 2.7m) worth of compulsorily convertible preference shares in Bira. In addition, CDL is further increasing its stake in Bira 91 by another INR 113 m (USD 1.36m).
“The acquisition will help us expand our production capacity and cater to the increasing consumer demand across the region, however, [we] cannot disclose further details at this stage,” a Bira 91 spokesperson told Inc42.
Bira 91’s second deal was announced today. The craft brewer revealed to buy beverage chain operator The Beer Cafe for an undisclosed price in an all-stock deal.
Beer Café sells 50 brands across 33 outlets in 15 cities and will helpBira91 access to more restaurants and pubs as dining out becomes a preferred option again after the pandemic.
According to a statement, the craft brewer wants to build ”India’s first large scale direct-to-consumer platform focused on Beer & Innovation”.
Rahul Singh, CEO, and Founder of The Beer Cafe will continue to lead the brand’s operations and take the complete responsibility of the newly formed restaurant vertical. He also stressed the fact that his company will continue to serve beer from different global brands despite the new ownership.
“The neutrality of The Beer Café brand offering the most variety of beers remains intact,” says Singh. “We are thrilled to have found a partner in Bira 91 to proffer the beer culture in India. The Beer Café has a strong consumer base that is loyal & passionate towards the brand. 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.”
Following its last year’s acquisition of less than 10 percent for USD 30 million in India’s most successful craft brewer (inside.beer, 5.1.2021), Japanese brewing group KirinHoldings said three weeks ago to invest another USD 70 million in the New Delhi-based company, raising its stake to about 15%. (inside.beer, 20.09.2022)
Up to now, Bira 91 has raised USD 210 million, with investors including Sequoia Capital, Sixth Sense Partners, and Kirin Holdings.