Carlsberg will own 51% of the JV

Carlsberg will own 51% of the JV

Carlsberg is to follow PepsiCo and the Coca-Cola Co into Myanmar after it formed a joint venture with a local brewery.

The Danish brewer said today (1 February) that it has signed a “strategic partnership agreement” with Myanmar Golden Star (MGS) Breweries to make and distribute Carlsberg beers in Myanmar. The JV, Myanmar Carlsberg Co, is 51% owned by Carlsberg, according to the brewer.

Carlsberg said tha the time is right to invest in Myanmar, which held by-elections last April as part of a pledge to reform politically.

“We firmly believe that Myanmar is a market that offers great potential and we are looking forward to starting up operations soon." Roy Bagattini, senior VP of Carlsberg Asia Region, said.

Myanmar's per capita beer consumption of four litres a year is far lower than other South-East Asian nations such as Vietnam (31 litres), Thailand (26 litres) and Laos (32 litres), according to Euromonitor figures. 

A Carlsberg spokesperson told just-drinks the JV will run along similar lines to the company's distribution partnership with Singha in Thailand. However, Carlsberg “plans to go further ahead” and will build a brewery to manufacture Carlsberg brands.

Bagattini first announced Carlsberg's interest in Myanmar in November when he said the company was “considering various options” in the country.

Carlsberg's move follows Coca-Cola's announcement in June that it is re-entering Myanmar after the lifting of US sanctions. PepsiCo has also said it wants to open a bottling plant in the country.