Dutch brewing company Heineken has entered into a joint venture with privately-owned Alliance Brewery Company to brew and distribute its name-brand beer in Myanmar.
According to the International Beverages Trading Company (IBTC), the Myanmar Investment Commission gave Alliance the green light to Heineken to sell beer through its subsidiary Asia Pacific Breweries Limited. Heineken will have a controlling 57 percent stake in the joint venture, tasked with overall management, providing brewing and technical expertise, procurement of ingredients and the licensing of brands.
Heineken is the seventh beer brand to set up in Myanmar, and the first beer company to be approved by the newly formed Myanmar Investment Commission.
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.
The move comes a week after Myint Zaw, senior CEO of Myanmar Brewery Ltd, stated that the Myanmar beer and liquor industry has “huge room to grow.”