Published on : Jul 14, 2015
Heineken, the coveted Dutch beer maker, also the world’s third largest brewer, has made an entry in Myanmar’s beer market with a blast. The company announced this Sunday that it has opened a brewery worth nearly US$60 million in the Hmawbi township near country’s commercial capital Yangon.
Heineken’s presence in the country, not quite known for its beer drinkers, will intensify the competition in the country’s beer market and challenge the dominance of state-owned breweries. Beverage giants all across the globe are amongst the most eager market players vouching for a piece of one of East Asia’s biggest markets that hold enormous untapped opportunities for market growth. Higher incomes and economic reforms in the country are acting as magnets and attracting many industries.
Heineken’s new plant will commence operations by brewing for the premium segments and Regal Seven, a new local brand made especially for the country’s market.
Heineken’s CEO Jean-Francois Van Boxmeer said that Myanmar is a very exciting new opportunity for the company. He added that Heineken has an excellent track record of growing in emerging markets, working in partnership with local employees, investing in latest technologies, and also supporting the communities with which the company operates.
In the year 2013, Heineken had established a partnership with the local brewery Alliance Brewery Company Ltd by taking a 57% stake of one of the brewery’s ventures APB Alliance Brewery Company Ltd. The partnership business is expected to create nearly 200 jobs in the country.
Alliance’s chairman Aung Moe Kyaw quoted that now as the first phase of the project is complete, the project can move to its second phase wherein excellent beer can be created and many new employment opportunities can be fetched.
Heineken will face the most competition from Denmark’s beer Carlsberg, a brand that is the most loved and consumed beer in Myanmar for decades.