B9 Beverages, the operator of The Beer Cafe and Bira Taproom, is set to expand by opening 25 new outlets in various markets. BTB Marketing, a wholly owned subsidiary of B9 Beverages Ltd, aims to achieve ₹200 crore in revenue by FY26 as it seeks to grow its popular beer chains and taproom locations across cities. Most of the new openings will come from The Beer Cafe, which currently has 51 locations nationwide. Rahul Singh, vice president of the pubs and taprooms division, noted that The Beer Cafe has bounced back after the pandemic, which led to the closure of over 15 stores. It now operates 40 company-owned and 11 franchised outlets. Meanwhile, Bira Taproom has expanded from two locations in 2021 to 10 across seven cities.
The Beer Cafe offers a variety of bottled and fresh beers, alcoholic beverages, and food, while Bira Taproom focuses solely on its own brewed beer and other alcoholic drinks. Singh mentioned plans to explore new markets within existing states, including Mysore and Mangalore in Karnataka, as well as Thane and Nashik in Maharashtra, and additional markets in Madhya Pradesh. He anticipates revenue will reach ₹125 crore by the end of FY25 and ₹200 crore by FY26.
Founded in 2012, the pub chain reduced its number of company-owned outlets from 40 in 2019 to 25 in 2020 due to pandemic-related challenges, resulting in a revenue decline from ₹100 crore in FY19 to ₹84 crore in FY24. In October 2022, B9 Beverages reached an agreement with BTB Marketing to acquire 100% of The Beer Cafe’s shares, with a total transaction value of approximately ₹92 crore.
Singh highlighted that this pubs and taproom segment is India’s first large-scale, direct-to-consumer channel focused on beer, with The Beer Cafe offering the largest selection of beers under one roof. Bira Taproom competes with Seven Rivers Brewing Company, a joint venture between AB InBev and Indian Hotels Company, as well as independent breweries like Effingut and Ironhill. The expected return on capital for pub outlets is projected within 12 to 24 months, while brewery outlets are anticipated to see returns in 24 to 30 months. The cost of establishing a new outlet ranges from ₹1-3 crore, excluding rental expenses.