Lotte has entered Myanmar’s beverage market as a bottler for PepsiCo

Lotte has entered Myanmar’s beverage market as a bottler for PepsiCo in February 2014

Lotte Chilsung Beverage, the beverage division of the country’s fifth largest business conglomerate, launched LOTTE-MGS Beverage at the Traders Hotel in Yangon on January 29. A total of 150 high-ranking officials from Lotte and MGS as well as Myanmar political figures were present, the company said.

“Myanmar has great potential and will be a strategic location in Southeast Asia. I hope Lotte will lead the Myanmar market using its 64 years of beverage business know-how,” Lotte chairman Shin Dong-bin said at the inauguration ceremony.

The US$81 million (Bt2.65 billion) joint venture, 70 per cent owned by Lotte and 30 per cent by soda company Myanmar Golden Star, will become the bottler for global soda giant PepsiCo. The company will release Pepsi Cola, 7-Up, Mirinda and more into the $150 million market that achieves more than 10 per cent growth every year.

Lotte will renovate the production line of MGS’ two plants in Yangon and Mandalay. The company is also planning to sponsor local festivals, football matches and K-pop events. The firm will take advantage of MGS’ 17 offices around the country for logistics.

Myanmar will be the fourth overseas market that Lotte Chilsung has entered following China, Russia and the Philippines.

Lotte has already opened three Lotteria fast food restaurants in Myanmar. The first opened in the crowded Junction Square shopping mall last April. Lotteria is planning to add 30 more by 2016. The company has also been investing in the construction of a hotel in downtown Yangon and will take over its operation on completion.

Myanmar Golden Beverage and Lotte Chilsung Beverage enter joint venture to produce and distribute Pepsi drinks in Myanmar

Myanmar’s consumers across 17 major cities in the country will soon enjoy PepsiCo beverages. Myanmar Golden Beverage Co Ltd (MGS) has tied up with South Korea’s Lotte Chilsung Beverage Co. Ltd to produce and distribute PepsiCo drinks in the country. The joint venture – under the name of Lotte-MGS Beverage Co. Ltd, has already been approved by the Myanmar Investment Commission (MIC).

While Lotte Chilsung Beverage will have a 70 percent stake in the JV, the remaining 30 percent will be held by MGS. The joint venture is worth USD 81 million in capital.

As per the deal, MGS’s existing soft drinks production plant in Rangoon’s Hlaing Tharyar Industrial zone will be utilized. However, the plant will be technologically upgraded to enable production of PepsiCo drinks comprising Pepsi-Cola, 7-Up and Mirinda.

MGS ran a Pepsi plant in Rangoon before international sanctions came into play during 1994 to 2012. During this period, Pepsi products were not sold and distributed in Burma.

Post 2012, once democratic reforms came in and sanctions were lifted, PepsiCo tied up with Rangoon-based Diamond Star, giving the Burmese company exclusive rights to import, sell and distribute PepsiCo drinks in the country.

Diamond stopped the imports in October 2013.

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