Myanmar volumes down 30% in Q2 FY volumes expected to also fall by 30% Kirin’s overall sales dip by 1% to JPY864bn (US$7.87bn) Kirin Holdings has taken a JPY21.4bn (US$191m) write-down on its Myanmar operations as a military coup and rapid increase in COVID infections punctured full-year expectations. The Japanese beverage producer, which is exiting a brewing JV in Myanmar linked to top generals, said today the South-East Asian country is experiencing a “continuing high level of uncertainty” because of the February coup d'état. Meanwhile, a surge in COVID infections in July added to a downward revision in full-year sales volumes. According to the BBC, Myanmar has reported 300,000 cases and 9,300 deaths, however those numbers are likely to be underestimates because of limited testing. Announcing first-half results today, Kirin said Q2 beer volumes in Myanmar fell by 30%, outpacing an overall 20% volumes drop in the country’s beer market. FY volumes are also expected to be down by 30%. The write-down adds to Kirin’s challenges in Myanmar, which is under the control of military leaders following the overthrow of the democratically-elected government. Last year, Kirin announced it would dissolve a brewing JV, which has been economically linked with leading figures in the Myanmar army. Speaking to Just Drinks today, a Kirin spokesperson said that although the situation in Myanmar “continues to be unstable, we are working to terminate the joint-venture as soon as possible”. However, the spokesperson added that Kirin is not ready to exit Myanmar’s beer market. “We hope to find a way forward that will allow us to continue to contribute to Myanmar’s economy and society,” the spokesperson said. Kirin operates two breweries in Myanmar through a holding company called Myanma Economic Holdings Public Co (MEHPC). Overall, Kirin’s sales in the six months to 30 June slipped by 1%. According to the company, the decline in Myanmar was offset by a recovery in Australia and New Zealand, where on-premise venues reopened. To read Kirin’s official results, click here. Heineken warns full-year performance will lag 2019 – results