Cobra Beer set for £25.7m cash injection

Cobra Beer, the biggest supplier of lager to Britain’s 6,000 curry houses, plans to expand in the UK and India following a £27.5m cash injection.

The London-based company says the funds, which come from a combination of unsecured loans and ordinary share placements, will be used to increase its share of the Indian restaurant market by expanding sales of draught beer, particularly in the North of England. 

It also intends to invest “significantly” to grow its draught beer presence in pubs.  Since its entry into the market in 2003, Cobra beer is now available to more than 6,000 outlets, including 570 JD Wetherspoon outlets and in Living Ventures, Punch Taverns and De Vere Hotels. 

Lord Bilimoria, Cobra’s chief executive, who started Cobra Beer in 1989 with £20,000 of student debt, said the funding would help strengthen the beer’s brand in the UK.

“Now we have the funds we need for our medium-term development and have ambitious plans to build on the current success of Cobra Beer to reach our goal.”

The company said it also anticipates substantial growth in India’s beer market over the next 10 years as well as an increase in sales in the USA and South African markets.

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