MYANMAR: Lotte Chilsung creates JV with MGS Beverage - report
South Korea's Lotte Chilsung has invested US$81m to set up a JV in Myanmar with local company MGS Beverage, according to a report.
The Korean Times said yesterday (29 January) that the beverage unit of Lotte Group received approval for the firm, called Lotte-MGS Beverage, on 15 January. Lotte owns 70% of the JV, which will reportedly also sell PepsiCo products in the country.
Lotte Chilsung's overseas unit did not immediately respond to a request for comment.
A PepsiCo spokesperson confirmed to just-drinks that the JV will distribute PepsiCo beverages in the market.
Lotte Group chairman Shin Dong-bin was quoted as saying: “Myanmar has great potential and will be a strategic location in South East Asia. I hope Lotte Chilsung will lead the Myanmar beverage market using its 64 years of beverage business know-how.”
Last month, Myanmar media reported that PepsiCo had agreed on a partnership in Myanmar with Lotte Chilsung. At the time, PepsiCo spokesperson said the company “refused to comment on specultation”.
PepsiCo already has a presence in Myanmar after it announced last year it will open a bottling plant.
This article was updated on 31 January to include PepsiCo's confirmation.
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