E-Malt.com News article: Myanmar: Beer industry set to grow rapidly with four new brewery licenses offered by the government

Despite Myanmar’s comparatively low beer sales, the largely untapped industry is set to grow rapidly with four new brewery licenses offered by the government, Mizzima reported on May, 9.

Speaking at the Myanmar Consumer Summit at Yangon’s Park Royal Hotel on May, 9, Myint Zaw, senior CEO of Myanmar Brewery Ltd, said, “There is huge room to grow for hard liquor and beer in Myanmar. Every year the market growth has been quite significant.”

However, expansion in the industry is limited with companies needing to invest massively in marketing, while most expand into the soft drinks market to make real gains, he said.

“Beer is still low compared to other [drinks] categories in Myanmar,” said Ralf Matthaes, regional managing director of TNS Indochina, a consumer consultancy group that opened a Yangon office in March. He also noted that while there was a smaller penetration of beer, there was in fact a higher consumption rate among the individual population.

There are currently three breweries operating in Myanmar: Myanmar Brewery Ltd, a joint venture (JV) between Union of Myanmar Economic Holdings with Fraser & Naeve, a Singaporean company, and which has an 83 percent share of the market; Dagon Beverages Co, a JV between Myanmar Economic Corporation, Bermuda's Brew Invest and Myanmar Golden Star Co, with a 13 percent share of the market; and finally Mandalay Beer, a heritage company operating since 1859, with a four percent share.

In February, Carlsberg signed a strategic partnership agreement with Myanmar Golden Star (MGS) Breweries to brew and market Carlsberg beers in Myanmar.

The two firms have formed a joint-venture—Myanmar Carlsberg Co Ltd, a statement by the Danish company said, with plans to set up a new brewery and distribute Carlsberg beers in the local market.

“We have followed the developments in Myanmar closely and are encouraged by the recent political developments in the country,” said Roy Bagattini, Snr Vice-President of Carlsberg Asia Region. “We believe that the timing is right for us to invest in the country. We expect that the Myanmar beer market will grow strongly in coming years as the economy expands.”

Thailand's Beer Chang International Ltd also formed a joint venture with Myanmar Distillery Ltd earlier this year to operate factories in Yangon and Mandalay.

The breweries competing for the remaining two licenses have yet to be announced.

10 May, 2013