FDBusiness.com

Heineken has entered into a local joint venture agreement with privately-owned Alliance Brewery Company to brew and sell Heinken beers in Myanmar (Burma). ABC is majority-owned by Aung Moe Kyaw, a local entrepreneur and established leader in the spirits industry. The new joint venture company, APB Alliance Brewery Company, which will build a new greenfield brewery in the country, has been approved by the Myanmar Investment Committee (MIC).

Under the terms of the agreement, Heineken, through its subsidiary Asia Pacific Breweries, will have a controlling 57% stake in the new joint venture company and be responsible for overall management, providing brewing and technical expertise, procurement of ingredients and the licensing of brands.

The brewery will be located near the country’s capital Yangon and is expected to be operational by the end of 2014. The joint venture company plans to invest $60 million in the brewery, create more than 400 jobs and brew leading brands, including Heineken.

Heineken’s announcement follows the European Union Council decision on 22nd April 2013 to lift all sanctions, with the exception of the embargo on arms, against Myanmar. It also reflects the recent international recognition by many countries of Myanmar’s progress in terms of both political and social reform and the decision of a number of global companies to announce plans to enter the country.

Heineken is following the lead of The Coca-Cola Company, Carlsberg and Ford Motor Company in announced plans to enter Myanmar.

Jean-François van Boxmeer, chief executive and chairman of Heineken, comment: “This is a truly exciting business opportunity that expands further our exposure to high growth markets. There is a growing recognition of the positive progress that Myanmar is making in terms of its political and social reforms. Through our investment, job creation and implementation of our global policies, I believe that we will support this process.”