Bira 91 Faces Employee Unrest Amid Financial Strain and Operational Challenges
Craft beer brand Bira 91 is grappling with growing dissatisfaction among its workforce, as current and former employees voice concerns over delayed salaries, unreimbursed expenses, and pending dues. These issues have surfaced months after the company initiated a restructuring process that was not officially termed a layoff.
A former sales employee reported being asked to serve a two-month notice period after resigning in December, only to have it abruptly shortened in January. Despite assurances, dues remain unpaid even after 90 days, with the latest update suggesting a possible clearance by May 31. Multiple employees indicated that salary delays began in November 2024, with travel and daily expense reimbursements halted around the same time. In January 2025, several staff members were either reassigned to different cities or instructed to switch roles, with those unwilling to comply being asked to resign.
Internally, employees have observed a decline in the company's financial health since the previous year. A former marketing executive highlighted that in 2023, Bira aimed for ambitious sales targets but achieved only 40% of them. This discrepancy led to unsustainable hiring and spending practices. Significant marketing expenditures, including an estimated ₹200-250 crore on a five-year ICC sponsorship and multiple IPL team partnerships, further strained resources. Despite aggressive marketing campaigns, product shortages persisted due to unpaid vendors and halted brewery operations.
The company's legal name change in 2023 necessitated product relabeling across various states, coinciding with delayed vendor payments and inventory shortages during the peak beer season. Industry experts attribute these challenges to overextension and rapid scaling without adequate infrastructure. Vinod Giri, Director General of the Brewers Association of India, noted that expanding too quickly with the wrong state mix or unused capacity can become unsustainable. Sanjay Jain, an alcobev market observer, added that venture capital often misreads the unit economics of beer, emphasizing that it's not akin to FMCG.
Founded in 2015, Bira 91 has raised approximately $457 million from investors such as Sofina, Kirin Holdings, MUFG Bank, and Peak XV Partners. The company's most recent funding round of $25 million closed last year.
As Bira 91 navigates these operational and financial challenges, the company's ability to address employee concerns and stabilize its operations remains crucial for its future trajectory.