Bira 91 faces employee woes, supply strain – Times of India
BENGALURU: Craft beer maker Bira 91 is experiencing increased unrest among both current and former employees, who have cited issues such as pending salaries, unreimbursed allowances, and unresolved dues.These concerns linger months after the company began a restructuring exercise that was never officially labelled a layoff.
A former sales employee reported, “I was told to serve a two-month notice after resigning in December, but in January, it was suddenly cut short by a month. They promised to clear my dues, but I’ve been waiting 90 days now. The latest update says it may come by May 31.”
Multiple employees informed TOI that salary delays began in November 2024, with reimbursements for travel and daily expenses halted around the same period. In January 2025, several staff members were either reassigned to different cities or instructed to switch roles. A former employee stated, “I was in marketing and told to move into sales in another state. This was the case for 70% of us. Those who didn’t accept were told to resign.”
Internally, the workforce reported a continued decline in the company’s financial health since last year. A former marketing executive highlighted a considerable discrepancy between expected and achieved results. “In 2023, Bira aimed for ambitious sales targets but ended up doing only 40% of it. Hiring and spending were based on much higher growth expectations. It became unsustainable.”
The same employee noted significant marketing outlays, with an estimated Rs 200-250 crore spent on a five-year ICC sponsorship concluding in 2023, along with multiple IPL team partnerships. “We created demand with ATL and BTL campaigns, but there was no stock on shelves. Vendors weren’t paid, raw material didn’t arrive, and breweries stopped operating. The Rs 80 crore loss blamed on labelling was just a cover.” Bira 91 did not respond to TOI’s request for comment.
The company changed its legal name in 2023, necessitating product relabelling across various states. This coincided with delayed payments to vendors and an inventory shortage during the summer. Employees reported that operational disturbance extended into the peak beer season. Industry observers attribute these challenges to overextension. Vinod Giri, Director General of the Brewers Association of India, commented, “New brands hoping to disrupt beer must walk a fine line between growth and uniqueness.Expanding too fast with the wrong state mix or unused capacity can quickly become unsustainable.”
Sanjay Jain, an alcobev market observer and founding partner at Taj Capital, added, “Beer is a volume game. Bira had a strong niche identity but pivoted too quickly to scale. Venture capital often misreads the unit economics of beer – it’s not FMCG.”
Bira 91, founded in 2015, secured approximately $457 million from investors such as Sofina, Kirin Holdings, MUFG Bank, and Peak XV Partners. The most recent funding round of $25 million closed last year. The company’s revenue fell 22% to Rs 638 crore in the 2023-24 financial year, while net losses widened to Rs 748 crore, partly due to an inventory write-off linked to the labelling transition
