Kirin to exit Myanmar beer market over human rights

Feb 14, 2022 | News On Japan

Feb 14, 2022 (Nikkei) - Japanese beverage company Kirin Holdings is set to exit its Myanmar operations after it concluded there is no hope of resolving a dispute with its military-backed partner a year after a military takeover plunged the Southeast Asian nation into turmoil, Nikkei has learned.

Kirin will now begin procedures to shut down is business in the country, which it operates as a joint venture with military-owned Myanma Economic Holdings (MEHL). Although Kirin is considering options for the disposal of its interest in the venture, including sales to a third party company, it is aiming to finish the deal by June.

The Japanese company had sought to end its partnership with MEHL after the military seized power in February 2021, concerned about the deteriorating human rights situation in the country. Although Kirin had hoped to continue its beer business in Myanmar after the dissolution of the joint venture, that did not work out.

After unsuccessful negotiations with MEHL, Kirin took its case to the Singapore International Arbitration Center in early December. But the brewer seems to have decided to pull out, as no progress is expected.

The sale includes Myanmar Brewery, a local beer company in which Kirin took a stake in 2015, and Mandalay Brewery, a joint venture with MEHL established in 2017. Kirin holds 51% stakes in the two companies and MEHL the rest. Kirin seems it plans to sell all of its shares to a company with no military links. The buyer and sales value will be decided by the end of June. ...continue reading

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