PepsiCo has declined to comment on a report claiming the company has agreed a partnership in Myanmar with South Korean beverage firm Lotte Chilsung.

Eleven Media reported this week that Lotte Chilsung, which produces PepsiCo products in South Korea, has applied for permission to open a branch office in Myanmar. The report, which cited Myanmar's Directorate of Investment and Companies Administration, said the move is in partnership with PepsiCo.

A PepsiCo spokesperson yesterday (18 December) declined to comment to just-drinks on the report, saying: "We don’t comment on speculation”.

The spokesperson added: “Myanmar is a market with great potential and we continue to explore opportunities to expand our presence in the country.”

PepsiCo already has a presence in Myanmar after it announced last year it will open a bottling plant.

In June, PepsiCo chairman and CEO Indra Nooyi visited Myanmar to co-chair the World Economic Forum on East Asia 2013 event. She called Myanmar "a story that is just beginning to unfold".

She added: “Political reform is happening here and as economic reform starts to happen here in Myanmar, I think this is going to be an unbelievable growth story for many years to come.”