Heineken Taps into Myanmar’s Growing Thirst

13 Jul 2015

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13 Jul 2015 --- Dutch brewer Heineken, the world’s third largest brewer, has opened a $60 million brewery in Myanmar, which will have a technical capacity of 330,000 hectolitres per year and which will directly employ more than 200 local people.

The opening of the new brewery further expands Heineken’s exposure to high growth markets. Myanmar has one of the largest populations in Southeast Asia, with more than 53 million people, rapid urbanization and a fast-growing middle-class consumer base. For the year ending 31 March 2015 the country delivered GDP growth of 7.7% and is targeting further growth of 8.3% for this fiscal year. These strong economics and demographics helped drive $8.01 billion of Foreign Direct Investment in 2015.

The new brewery is located at a greenfield site in the Hmawbi township, near the country's capital, Yangon. It will start by brewing Heineken for the premium segment of the market and a new local brand, Regal Seven, a lager beer developed especially for the Myanmar market.

Speaking at the opening, Jean-François van Boxmeer, Heineken CEO and Chairman of the Executive Board, said: "Myanmar is an exciting new opportunity for Heineken. We have a strong track record of growing in partnership with emerging markets, investing in the latest technologies, hiring and training local employees, and supporting the communities where we operate. With our inclusive approach to growth, we are well placed to build a strong and sustainable business in Myanmar."

Aung Moe Kyaw, Chairman, Alliance Brewery Company Ltd said: "We are delighted that the brewery is now operational. It is modern, efficient and something we can all be proud of. Now we can move to the next phase of the project, delivering excellent beers that consumers enjoy and creating a continuous supply of attractive employment opportunities for the people of Myanmar."

The opening ceremony was attended by guests including Mrs Charlene de Carvalho-Heineken, Jean-François van Boxmeer, Chairman of the Executive Board and CEO of Heineken, JV partner Aung Moe Kyaw, Chairman, Alliance Brewery Company Ltd, as well as high level political and community leaders and representatives from local and international NGOs.

The brewery was built by APB Alliance Brewery Company Limited, a joint venture company in which Heineken, through its wholly owned subsidiary Heineken Asia Pacific Pte. Ltd, has a controlling 57 percent stake. Heineken is responsible for overall management, providing brewing and technical expertise, procurement of ingredients and the licensing of brands.

In addition to creating direct employment opportunities through the brewery, Heineken has introduced a number of local initiatives in line with its Brewing a Better World programme. These include Employee and supplier Code of Conduct training; helping local rice millers to meet international guidelines and plans to convert smallholder farmers from insecure non-profitable farming to high yield contract farming; a formal engagement programme with community groups to address any issues of concern; and a strong water stewardship programme including regular consultation with the Myanmar Engineering Society and local village representatives.