🍺Bira 91 beer Breakdown: losses, delays, and leadership drama 😬

The problem happened after Bira 91 beer’s name change, mainly because of how alcohol businesses are regulated in India.
Here’s what went wrong, in simple terms 👇

1. Name Change Means New Legal Entity:
   When Bira 91 changed its official company name from B9 Beverages Private Limited to B9 Beverages Limited, the government treated it as a new company , not just a renamed one.

2. The Liquor Industry Has Complicated Rules:
   Alcohol is a state subject in India. Every state has its own laws, licenses, and permissions for selling alcohol. So, when the name changed, Bira had to reapply for all licenses, label approvals, and permits in every state , from scratch.

3. Delay in New Licenses:
   Getting fresh approvals for 20+ states took months. During this time, Bira couldn’t legally sell or move its beer in many places.

4. Supply Chain Stopped:
   With licenses pending, beer got stuck in warehouses. Vendors couldn’t sell it. Sales stopped, and stock piled up or expired.

5. Cash Flow Collapsed:
   No sales means no money. But expenses (like salaries, rent, and taxes) continued. This created a cash crunch and led to delayed employee payments and vendor dues.

So basically —
👉 A “small” legal name change created a huge ripple effect because Bira didn’t plan for the long and complicated government process that comes with it.