Japan’s Kirin brewery writes off nearly $200 million in Myanmar
Japan’s popular beer brand Kirin has become the next casualty in the Myanmar economic and political crisis after Norway’s Telenor, suffering substantial losses in the country which was turned upside down by the February 1 military coup and the Covid-19 pandemic.
Tokyo-based Kirin Holdings Company said on August 10 that its local brewery unit suffered an impairment loss of over 21.4 billion yen ($193.3 million) in the first half from business disruptions in Myanmar.
The losses were stemming from “a level of uncertainty of the operating environment and increase in the country risk due to the circumstances in Myanmar,” the statement said, referring to the severe economic crisis caused by Covid-19 and the military takeover.
Kirin owns stakes of 51% in each Myanmar Brewery and Mandalay Brewery, whereby the rest of the two companies’ stakes is held by military-controlled conglomerate Myanma Economic Holding.
Boycott of Kirin beer brands puts pressure on sales
Myanmar citizens have boycotted both breweries due to their ties with the military. Ongoing protests and widespread Covid-19 infections have further resulted in declining sales for Kirin.
It is, however, not clear whether Kirin would exit the country in this situation. The company said in February it plans to cut ties with Myanma Economic Holdings, but discussions are still ongoing.
“We would like to stay in Myanmar. This would be for consumers, for employees and for the people,” Kirin’s CEO Yoshinori Isozaki told media at the company’s half-year financial report presentation on August 10, despite facing strong shareholder pressure to end the company’s Myanmar venture that turned ominous.
Japan’s popular beer brand Kirin has become the next casualty in the Myanmar economic and political crisis after Norway’s Telenor, suffering substantial losses in the country which was turned upside down by the February 1 military coup and the Covid-19 pandemic. Tokyo-based Kirin Holdings Company said on August 10 that its local brewery unit suffered an impairment loss of over 21.4 billion yen ($193.3 million) in the first half from business disruptions in Myanmar. The losses were stemming from “a level of uncertainty of the operating environment and increase in the country risk due to the circumstances in Myanmar,” the...
Japan’s popular beer brand Kirin has become the next casualty in the Myanmar economic and political crisis after Norway’s Telenor, suffering substantial losses in the country which was turned upside down by the February 1 military coup and the Covid-19 pandemic.
Tokyo-based Kirin Holdings Company said on August 10 that its local brewery unit suffered an impairment loss of over 21.4 billion yen ($193.3 million) in the first half from business disruptions in Myanmar.
The losses were stemming from “a level of uncertainty of the operating environment and increase in the country risk due to the circumstances in Myanmar,” the statement said, referring to the severe economic crisis caused by Covid-19 and the military takeover.
Kirin owns stakes of 51% in each Myanmar Brewery and Mandalay Brewery, whereby the rest of the two companies’ stakes is held by military-controlled conglomerate Myanma Economic Holding.
Boycott of Kirin beer brands puts pressure on sales
Myanmar citizens have boycotted both breweries due to their ties with the military. Ongoing protests and widespread Covid-19 infections have further resulted in declining sales for Kirin.
It is, however, not clear whether Kirin would exit the country in this situation. The company said in February it plans to cut ties with Myanma Economic Holdings, but discussions are still ongoing.
“We would like to stay in Myanmar. This would be for consumers, for employees and for the people,” Kirin’s CEO Yoshinori Isozaki told media at the company’s half-year financial report presentation on August 10, despite facing strong shareholder pressure to end the company’s Myanmar venture that turned ominous.
