Myanmar steps up beer production to quench growing thirst

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Myanmar beer adLocal beer production in Myanmar has increased to 104 million liters in ten months from April 2013 to January, which is 3.78 million liters higher than the last year’s output, according to the Ministry of National Planning and Economic Development, indicating that Myanmar’s population has become thirstier for the brew.

To meet rising demand, the country’s production capacity for beer and alcoholic beverages has steadily climbed in the past.

In the fiscal year 2011-12, domestic beer production was almost 76 million liters. It rose to 98 million liters in the following year.

The monthly production for beer is between 9.5 and 13.2 million liters. Local markets see the influx of imported beer as well.

Existing breweries and liquor distilleries are run by local businessmen. Foreign beer companies have started to penetrate the local markets by forming joint venture with the locals in order to apply for the production permit from Myanmar Investment Commission.

At present, the country imposes 50 per cent excise duty on beer, wine and liquor. The duty for domestic alcoholic beverages is calculated from the sale price. For imported alcoholic beverages, the calculation is based on cost of freight.

There are currently three domestic breweries operating in Myanmar: Myanmar Brewery Ltd, a joint venture between Union of Myanmar Economic Holdings and Fraser & Naeve. Myanmar Brewery has an 83-per cent share of the market; Dagon Beverages Co, a joint venture between Myanmar Economic Corporation, Bermuda’s Brew Invest and Myanmar Golden Star Co, has a 13 per cent market share; and Mandalay Beer, a heritage company operating since 1859, with a four per cent share.

In February, Carlsberg signed a strategic partnership agreement with Myanmar Golden Star Breweries, to brew and market Carlsberg beers in Myanmar. The two firms have formed the joint-venture Myanmar Carlsberg Co Ltd with plans to set up a new brewery and distribute Carlsberg beers in the local market.

Thailand’s Beer Chang International Ltd also formed a joint venture with Myanmar Distillery Ltd earlier this year to operate factories in Yangon and Mandalay. Thai Beverage Plc (Singha beer) is seeking a greater presence in Myanmar through its partnership with Fraser and Neave.

Dutch brewer Heineken said it has signed a joint-venture agreement with privately owned Alliance Brewery Company Ltd. to brew and sell Heineken beers in Myanmar.

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Reading Time: 2 minutes

Local beer production in Myanmar has increased to 104 million liters in ten months from April 2013 to January, which is 3.78 million liters higher than the last year’s output, according to the Ministry of National Planning and Economic Development, indicating that Myanmar’s population has become thirstier for the brew.

Reading Time: 2 minutes

Myanmar beer adLocal beer production in Myanmar has increased to 104 million liters in ten months from April 2013 to January, which is 3.78 million liters higher than the last year’s output, according to the Ministry of National Planning and Economic Development, indicating that Myanmar’s population has become thirstier for the brew.

To meet rising demand, the country’s production capacity for beer and alcoholic beverages has steadily climbed in the past.

In the fiscal year 2011-12, domestic beer production was almost 76 million liters. It rose to 98 million liters in the following year.

The monthly production for beer is between 9.5 and 13.2 million liters. Local markets see the influx of imported beer as well.

Existing breweries and liquor distilleries are run by local businessmen. Foreign beer companies have started to penetrate the local markets by forming joint venture with the locals in order to apply for the production permit from Myanmar Investment Commission.

At present, the country imposes 50 per cent excise duty on beer, wine and liquor. The duty for domestic alcoholic beverages is calculated from the sale price. For imported alcoholic beverages, the calculation is based on cost of freight.

There are currently three domestic breweries operating in Myanmar: Myanmar Brewery Ltd, a joint venture between Union of Myanmar Economic Holdings and Fraser & Naeve. Myanmar Brewery has an 83-per cent share of the market; Dagon Beverages Co, a joint venture between Myanmar Economic Corporation, Bermuda’s Brew Invest and Myanmar Golden Star Co, has a 13 per cent market share; and Mandalay Beer, a heritage company operating since 1859, with a four per cent share.

In February, Carlsberg signed a strategic partnership agreement with Myanmar Golden Star Breweries, to brew and market Carlsberg beers in Myanmar. The two firms have formed the joint-venture Myanmar Carlsberg Co Ltd with plans to set up a new brewery and distribute Carlsberg beers in the local market.

Thailand’s Beer Chang International Ltd also formed a joint venture with Myanmar Distillery Ltd earlier this year to operate factories in Yangon and Mandalay. Thai Beverage Plc (Singha beer) is seeking a greater presence in Myanmar through its partnership with Fraser and Neave.

Dutch brewer Heineken said it has signed a joint-venture agreement with privately owned Alliance Brewery Company Ltd. to brew and sell Heineken beers in Myanmar.

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