YANGON – A Myanmar military conglomerate has applied to dissolve the brewery it runs with Japanese beer giant Kirin, state media said, as its once-popular drink reels under a coup-inspired boycott.
Myanmar’s economy has tanked since the military took power in February, sparking widespread protests, deadly unrest, and international sanctions.
Lawyers for Myanma Economic Holdings Ltd (MEHL) “applied to dissolve Myanmar Brewery Ltd on November 19”, state-backed newspaper Myanma Alin reported, without giving details on why the application had been made.
Kirin has a majority stake in Myanmar Brewery in partnership with MEHL, a secretive military-controlled behemoth with tentacles in industries as diverse as beer, tobacco, transportation, textiles, tourism, and banking.
Myanmar Brewery, whose beverages include its flagship and ubiquitous Myanmar Beer brand, boasted a market share of nearly 80%, according to figures published by Kirin in 2018.
A court hearing for the application has been set for December 10, the Myanma Alin report on Monday said, but the news appears to have caught Kirin unaware.
“We are aware of the official announcement in the government-run paper, but we have not been directly informed. We’re currently checking the details,” a Kirin spokesman said.
Kirin’s Myanmar business generated ¥32.6 billion (RM1.3 billion) in revenue in the fiscal year 2019-2020, but it has been under scrutiny for some time over its relations with military-owned breweries.
Days after the coup, Kirin said it would cut business ties with the military, accusing the junta of acting “in contradiction” to its principles on human rights.
It still plans to dissolve partnerships with companies linked to the military, but its stance on continuing local operations has not changed, the spokesman added.
Investors piled into Myanmar after the military relaxed its iron grip in 2011, paving the way for democratic reforms and economic liberalisation in the country of more than 50 million people.
They poured money into telecommunications, infrastructure, manufacturing, and construction projects.
The coup upended the democratic interlude, and earlier this year, the World Bank forecast the economy will contract by up to 18%. – AFP, November 24, 2021
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