Japanese brewer, Kirin Holdings is set to invest $30 million in New Delhi-based B9 beverages as it seeks to secure a spot in India’s growing craft beer market. B9 is the maker of India’s popular craft beer Bira.
Craft beer refers to beer that has been brewed by a small-scale, independent brewery that produces only a small output each year. Generally, it means beers brewed by independently owned brewies that are not part of a large corporation. Experts decribe it as beer made by a brewery in which “craftsmanship” is key. Craft brewers often use traditional methods to brew their product, while getting creative with flavor combinations and styles.
Ankur Jain, Kirin spokesman and Bira CEO, told Reuters that the company will acquire a stake of under 10 per cent in B9. The Indian company had been in talks with international brewers, including Kirin and other investors, to sell a stake up to 20 per cent. Jain said the investment would allow Bira to break even in the 2022 fiscal year which starts in April 2021. He highlighted that the companies will be exploring business syneries and the investment would allow Bira to accelerate plans to launch its products in Japan later in the year.
Kirin, Japan’s second-biggest brewer has historically shown interest in independent breweries and owns a minority stake in New York’s Brooklyn Brewery. It was considered as a rare investment by an Asian company in the $22 billion US craft beery industry. Bloombery had stated that Japanese breweries have been experimenting with specialty brews as craft beer gains popularity in the country.
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Launched in 2015, Bira is one of the smallest players in India’s broader beer industry, with its craft beer offerings becoming increasingly popular in recent years. Bira has a five to 10 per cent share of the beer market in cities such as Mumbai, Delhi and Bengaluru.
