May 12, 2013

Myanmar thirsting for beer, hard liquor

Myanmar’s largely untapped booze industry leaves “huge room to grow for hard liquor and beer in the country,” according to Myint Zaw, senior CEO of Myanmar Brewery Ltd, who spoke at a consumer summit on May 9 in Yangon.

“Every year the market growth has been quite significant,” he added.

The Myanmar government has now been offering four new brewery licenses, but interested companies are aware that they need to invest massively in production and marketing.

There are currently three breweries operating in Myanmar:

Myanmar Brewery Ltd, a joint venture between Union of Myanmar Economic Holdings with Fraser & Neave of Singapore, which has an 83 per cent share of the market with its brands Myanmar Beer, Myanmar Double Strong and Andaman Gold.

Dagon Beverages Co, a joint venture between Myanmar Economic Corporation, Bermuda’s Brew Invest and Myanmar Golden Star Co, with a 13 per cent share of the market with its Dagon beer and rum range, as well as imported Skol beer.

Mandalay Beer, a heritage company operating since 1859, with a 4 per cent share with its Mandalay and Spirulina beer brands.

Of the four new licenses, two were already picked up by Carlsberg and Thailand’s ThaiBev, while the other two are still available.

In February 2013, Carlsberg signed a strategic partnership agreement with Myanmar Golden Star Breweries, to brew and market Carlsberg beers in Myanmar. The two firms have formed a joint venture called Myanmar Carlsberg Co Ltd.

Thailand’s Beer Chang International Ltd, a subsidiary of ThaiBev, also formed a joint venture with Myanmar Distillery Ltd earlier this year to operate production plants in Yangon and Mandalay.

Beer and liquor consumption is still low in Myanmar, compared to its ASEAN peers where Vietnam and Thailand are leading the pack.

Source: Investvine