Popular craft beer brand Bira 91 is currently under fire from former and current staff over unpaid salaries, outstanding reimbursements, and unresolved dues following months of layoffs. Several employees have come forward with allegations that they were either forced to resign or laid off with compensation still pending. One ex-sales executive shared that after resigning in December, he was asked to serve a two-month notice, only to have it shortened unexpectedly. Despite repeated assurances, his payments have remained pending for over three months, with the latest update pushing the due date to the end of May.

1. Internal Reassignments and Forced Resignations
Tensions reportedly began in November 2024 when the company halted reimbursement for business travel and other expenses. Matters escalated in early 2025 as staff were abruptly reassigned to different states and job roles—marketing professionals were instructed to switch to sales, often in unfamiliar territories. According to a former employee, about 70% of the workforce faced similar shifts. Those unwilling to comply were allegedly pressured into quitting.

2. Massive Marketing Spend Amid Operational Disruptions
Ex-employees have pointed to what they describe as poor financial planning, citing extravagant spending on branding and sponsorships. Bira 91 had allocated an estimated Rs 200–250 crore towards a five-year sponsorship deal with the ICC, which concluded in 2023, in addition to collaborations with several IPL franchises. However, while demand was being generated through high-cost ATL (Above The Line) and BTL (Below The Line) marketing campaigns, the supply side faltered. "There was no stock, vendors weren’t paid, raw materials stopped coming in, and breweries came to a standstill," said one employee.

3. Label Change Triggers Operational Setbacks
In 2023, Bira 91 underwent a legal name change, which required product relabelling across multiple regions. This relabelling process led to a chain reaction—delays in supplier payments, a shortage of summer stock, and ultimately, disruption during the peak beer production season. Insiders claim that the widely publicized Rs 80 crore loss attributed to labelling issues was merely a smokescreen for deeper financial mismanagement.

4. Industry View: Rapid Expansion Gone Wrong
Experts from the alcoholic beverage sector point to Bira’s overambitious growth strategy as a root cause of its troubles. Vinod Giri, Director General of the Brewers Association of India, commented that beer brands seeking rapid expansion often miscalculate their operational capacities. “Scaling with the wrong regional focus or underutilized infrastructure can backfire quickly,” he noted.

5. Investor Backing Didn’t Prevent Financial Slide
Despite securing significant backing—approximately USD 457 million from investors like Sofina, Kirin Holdings, MUFG Bank, and Peak XV Partners—Bira 91 has struggled to maintain financial stability. Its most recent funding round of USD 25 million closed in 2024. However, the company’s revenue dropped by 22% to Rs 638 crore in FY24, while net losses ballooned to Rs 748 crore, largely due to inventory write-offs associated with the relabelling initiative.

6. Scaling Missteps and Misunderstood Economics
Industry analysts argue that Bira 91’s pivot from a niche identity to a scale-focused model came at the cost of operational balance. Sanjay Jain, an expert in the alco-bev space, remarked, “Beer relies heavily on volumes. While Bira carved out a unique market early on, the sudden push for expansion missed the mark. Venture capital tends to approach it like an FMCG play, but the economics of beer production are fundamentally different.”

Conclusion: A Brand at Crossroads
Bira 91 now finds itself at a critical juncture—grappling with dissatisfied employees, financial strain, and supply chain hiccups. What was once a poster child of India's new-age beer movement must now reassess its strategy and restore trust among both its internal teams and external stakeholders.