Lord Karan Bilimoria, the founder of the iconic Cobra Beer brand, has announced his decision to step down as chairman, marking the end of a remarkable chapter in the beer industry. Bilimoria’s tenure leaves behind a legacy of resilience, growth, and an inspiring story of entrepreneurial success.
The move comes as the 63-year-old nears the completion of his commitment to repay creditors following Cobra Beer’s financial collapse in 2009. The company had entered administration with debts exceeding GBP 70 million (USD 89m) owed to 340 creditors. Through a restructuring deal with Molson Coors, the American brewing giant known in the UK for brands like Carling and Blue Moon, Cobra Beer was rescued, with Bilimoria retaining a 49.9% stake in a joint venture formed to rebuild the business.
Over the past 15 years, Bilimoria has overseen Cobra Beer’s resurgence, leveraging robust profits to repay 99% of the debt owed to creditors. Speaking to CityAM, he highlighted the significance of this milestone, stating, “The strong dividends from Cobra’s profits have allowed me to settle the creditors and, now at the exit, also look after special people, including my former shareholders.”
Cobra Beer’s Legacy
Bilimoria, who relocated from India to Britain at the age of 19, conceived the idea for Cobra Beer while studying law at Cambridge. His goal was to create a beer that paired more easily with food. Partnering with a brewery in India, he developed the product, and the first crates of Cobra were shipped to Britain in June 1990.
Originally brewed in Bangalore, India, and now predominantly brewed by Molson Coors in Burton-upon-Trent, the beer quickly gained popularity in the UK, where it is currently stocked in over 6,600 restaurants, supermarkets, and independent shops.
Despite early growth of 40% year-on-year during its first 18 years, the global financial crisis of 2008 left the company in a precarious position. The partnership with Molson Coors with Molson Coors taking an ownership of slightly more than 50% ensured its survival, allowing the brand to continue thriving while Bilimoria remained focused on fulfilling his financial obligations.
A Global Entrepreneur’s Journey
Reflecting on Cobra’s success, Bilimoria stated, “This is a story of the British dream—an immigrant coming to study and building, against the odds, a household name that has won over 150 gold medals.”
Bilimoria’s exit from Cobra Beer coincides with his appointment as Chair of the International Chamber of Commerce United Kingdom (ICC United Kingdom), where he aims to strengthen the UK’s engagement in international trade and industrial strategies.
Molson Coors Takes Full Ownership
As Cobra transitions to new leadership, Molson Coors has expressed excitement about taking full ownership of the brand, emphasizing its commitment to preserving Cobra Beer’s legacy as one of the most successful beer brands globally while continuing to expand its market presence. The company stated that it is "looking forward to continuing to work with Lord Bilimoria, founder of the Cobra brand, to champion the brand and the wider beer and hospitality industry.” However, Molson Coors did not provide specific details about the nature of this collaboration.
Future Beyond Cobra
While Bilimoria steps back from Cobra Beer, his dedication to fostering entrepreneurship and supporting businesses remains steadfast. He plans to work closely with the UK government to help the business community navigate economic challenges, ensuring his impact extends far beyond the beer industry.
With 35 years at the helm of Cobra Beer, Bilimoria’s departure marks the close of a transformative era, leaving behind a legacy of resilience and ambition that will continue to inspire entrepreneurs for generations to come.
