Bira 91 has grown as a beer manufacturer in India and established its brand value in this South Asian nation. Generally, the alcohol and beer manufacturers supply beverages to alcohol shops, pubs and bars and rarely take an active role in the direct-to-customer business. This role is of bars, wholesale providers, distributors and retailers to take care of. However, Bira 91 has taken a revolutionary step that will bring it closer to its consumer. The company is bullish about the sale and plans to achieve new heights through a new business deal.
Let us explore what the new deal entails and how the same can define the recent trajectory of Bira share price.
Bira 91 Acquires The Beer Café: Reasons & Potential Benefits
Bira 91 has no plans just to be a bystander in the distribution and sale of its beers in demand in 15 countries encompassing 500 cities and towns. Instead, it has expanded the business domain into direct-to-consumer platforms. In that context, Bira 91 has acquired The Beer Cafe, which has a significant presence across India.
However, the major surprise is the grand nature of the deal, which encompasses a big chain of pubs. While the management and team of the Beer Cafe will remain the same, the integration can take some time.
What’s In The Deal?
The deal encompasses all the outlets of Beer Cafe. Moreover, the agreement includes that Granite Hill, Mayfield, and RB Investments, Rahul and Bineeta Singh, will gain a partnership in Bira 91 share price. The acquisition consists of conditions that Bira 91 must strive further to refine the solid operating model of Beer Cafe. It adds an emphasis that Bira 91 should leverage the existing infrastructure to increase satisfaction among the consumer base of Beer Cafe.
How Would The Acquisition Impact Bira 91 And The Beer Cafe?
Positively is the one word that sums up the impacts of Bira 91 acquisition of Beer Cafe on the business activities and revenue collections of the two business entities. The deal brings together two brands with similar customer bases, portfolios of products and services and a business niche. Moreover, it means substantial reciprocal advantages to the two companies in a bilateral manner.
Firstly, the pubs in the chain of Beer Cafe will save greatly on beer supply and procurement, which means shared profit for the two entities. Moreover, the sale and revenue collection between the two entities will reach Bira 91 internally without an external B2B transaction, eliminating any extra tax payable to the government. The seamless integration of Bira 91 beverages and the pubs will allow customisations to launch more centralised business campaigns.
Building Direct To Consumer Platform Will Add To the Brand Image
Is there a better branding strategy for an alcohol manufacturer than pubs named after it?
“The deal will enable Bira 91 to strengthen its play in pubs and build a direct-to-consumer platform focused on beer,” Ankur Jain, CEO of Bira 91, disclosed on the acquisition. The deal will undoubtedly increase the customer recognition of Bira 91 and build great trust among the drinking population as a premium beer brand.
“Bira 91 will continue to invest in beer innovation and efficient supply chain. This will grow our own capabilities, along with talent and scale. Also, the group will take care of all support functions, which will give me sharper focus to expand Beer Cafe”, the CEO added. Moreover, Bira 91 can now seamlessly launch promotional campaigns in the outlets of Beer Cafe that spread to top locations around 15 cities. Arguably, this will be India’s leading large-scale platform for direct-to-consumer alcohol beverages.
The New Fate Of Bira 91 Share Price
Upward is the direction in the graph of Bira-B9 beverages share price will climb. There are two solid reasons to back up this statement. More customer interactions and presence mean more recognition, popularity and demand. After gaining a solid footing in alcoholic beverages in India, colossal popularity will invite more investors. This will increase the demand for Bira 91 stocks and the share price.
Moreover, the integrated model of Beer Cafe and Bira 91 will open new gates to growth and attractive annual reports. These figures are essential for investors and capital ventures and will certainly hike the share price of Bira 91 in the long term.
Invest Now!
A true investor should recognise the opportunities that would bring good returns in the long term. Bira 91 unlisted shares are one of the top-performing unlisted stocks in India today. As the company is exploring new opportunities for solid growth and turning into a large-cap enterprise, taking significant stockholding is an excellent idea.
When you are investing in unlisted stocks, critical indicators like EBITDA growth reports, share price overview, and profit are crucial in making decisions like share lot size. Stockify ensures all the information you need on unlisted stocks is on its website. Moreover, the expert team provides real-time guidance and makes sting an effortless task for you. Register with Stockify, and start making great investments today.
