E-Malt.com News article: Myanmar: Carlsberg starts selling locally brewed Tuborg and Yoma beers

Carlsberg has launched sales of its locally brewed Tuborg and Yoma brands in Myanmar as it seeks to become the first post-sanctions foreign producer to break into a growing beer sector dominated by state and military-backed enterprises, Reuters reported on April 22.

The firm began sales before Thingyan, providing domestic competition to market leader Myanmar Brewery.

Carlsberg Asia Region senior vice president Roy Bagattini said in a statement when the firm first announced it would come to Myanmar that the Danish company had closely followed developments in the country and was encouraged by recent political developments.

"We believe that the timing is right for us to invest," he said in January of 2013. "We expect that the Myanmar beer market will grow strongly in coming years as the economy expands."

Carlsberg established a local partnership with Myanmar Golden Star Breweries (MGS) in 2013, taking a 51 per cent stake in their joint venture Myanmar Carlsberg Co Ltd, and building a US$50 million brewery in Bago.

The brewery's sales began for Tuborg, an international brand, and Yoma, a brand created for the local market, in April. Tuborg's pricing is to be similar to Tiger, and the beer is available in kegs, cans and bottles, while Yoma is not yet available in bottles. Eventually, Carlsberg-branded beer will also be introduced, aiming at a premium market segment.

Both Tuborg and Yoma are intended to challenge Myanmar Beer, the dominant brand in the sector owned by Union of Myanmar Economic Holdings, a conglomerate close to the military.

Competition is set to grow further for Myanmar Brewery with Dutch rival Heineken also slated to enter the market with its own brewery.

Myanmar's average alcohol consumption lags regional economies. Standard Chartered research from 2014 put domestic consumption at 4 litres per capita per year, though adding consumption is still in its infancy and shows growth potential.

Figures from Euromonitor International show that the legal beer market – excluding black market imports, mostly from Thailand -- hit 172 million litres in 2013, posting annual growth of 5.5pc since 2009. In dollar terms, beer sales amounted to US$265 million in 2013, and have posted 14pc growth over 2009-2013. Annual growth of 21pc is expected between 2014 and 2018, when the market will reach $675 million, according to Euromonitor.

Carlsberg’s Yoma has been tailored to Myanmar tastes and uses rice in the brewing process - as does Tuborg.

"Ask a Myanmar [person] what they want in an alcohol, they've got it," said Carlsberg Myanmar marketing director Birgitte Weeke.

"Everyone said Yoma is like when you leave all your luggage, sit on a mountain top, and it's refreshing ... The whole concept is about everything is changing quite fast, and you kind of need a bit of a chill out."

Carlsberg's newest international brewery may be the new kid on the block, but it aims to build share in an expanding market. While the eventual leader remains to be seen, Myanmar's beer drinkers will benefit from having more options to fill their mugs.


24 April, 2015