Myanmar becomes brewing beer battlefield for Carlsberg, Heineken

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heineken_myanmar_monkTwo of the biggest international beer breweries have gone on collision course in Myanmar: Heineken and Carlsberg.

After Carlsberg opened a $75 million brewery in May this year, Heineken inaugurated a $60-million facility on the outskirts of Yangon this July after a 20.year hiatus. The new plant will start brewing Heineken for the premium market segment, and a new local brand, Regal Seven, has been developed especially for the broader Myanmar market, the company said.

Heineken established a local partnership with Alliance Brewery Company Ltd in 2013, taking a 57 per cent stake in their joint venture APB Alliance Brewery Company Limited. The brewery is expected to create 200 jobs and has room to ultimately produce 100 million liters of beer a year.

Carlsberg, in turn, partnered with Myanmar Golden Star Breweries (known for Skol and Dagon beer) and started producing two brands for the mainstream market, Tuborg and the new local brand Yoma, as well as Carlsberg Premium. Its brewery in Bago, 50 kilometers northeast of Yangon, can put out 60 million liters annually.

Both companies will compete for market share in the country of 55 million people, where an estimated 80 per cent of adults drink beer; they were for decades supplied mainly by the military-run Myanmar Brewery (known for Myanmar Beer, Andaman Beer and Double Strong) and a few other local breweries such as Mandalay Brewery (known for Mandalay Beer and Spirulina).

Beer sales in Myanmar rose 14 per cent to $265 million from 2009 to 2013, and are forecast to hit $675 million by 2018, according to Euromonitor International.

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Reading Time: 1 minute

Two of the biggest international beer breweries have gone on collision course in Myanmar: Heineken and Carlsberg.

Reading Time: 1 minute

heineken_myanmar_monkTwo of the biggest international beer breweries have gone on collision course in Myanmar: Heineken and Carlsberg.

After Carlsberg opened a $75 million brewery in May this year, Heineken inaugurated a $60-million facility on the outskirts of Yangon this July after a 20.year hiatus. The new plant will start brewing Heineken for the premium market segment, and a new local brand, Regal Seven, has been developed especially for the broader Myanmar market, the company said.

Heineken established a local partnership with Alliance Brewery Company Ltd in 2013, taking a 57 per cent stake in their joint venture APB Alliance Brewery Company Limited. The brewery is expected to create 200 jobs and has room to ultimately produce 100 million liters of beer a year.

Carlsberg, in turn, partnered with Myanmar Golden Star Breweries (known for Skol and Dagon beer) and started producing two brands for the mainstream market, Tuborg and the new local brand Yoma, as well as Carlsberg Premium. Its brewery in Bago, 50 kilometers northeast of Yangon, can put out 60 million liters annually.

Both companies will compete for market share in the country of 55 million people, where an estimated 80 per cent of adults drink beer; they were for decades supplied mainly by the military-run Myanmar Brewery (known for Myanmar Beer, Andaman Beer and Double Strong) and a few other local breweries such as Mandalay Brewery (known for Mandalay Beer and Spirulina).

Beer sales in Myanmar rose 14 per cent to $265 million from 2009 to 2013, and are forecast to hit $675 million by 2018, according to Euromonitor International.

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