Pernod Ricard plans Myanmar whisky expansion

Pernod Ricard is expanding its whisky footprint in Myanmar having acquired a majority stake in a new joint venture with private equity firm Yoma Strategic, making it the first major global producer of wine and spirits to enter the market.

The deal is expected to complete in 2019

The focus of the partnership, within which Pernod will hold a majority share, will be on the production and distribution of whisky in Myanmar.

The remaining equity will be split between Yoma Strategic, private equity firm Delta Capital Myanmar and distiller Win Brothers.

Pernod has said it plans to appoint a senior management team to head up operations in the country, with its entry into the market the first time a major global producer of wine and spirits has established a formal presence in Myanmar.

The agreement will see Yoma’s Myanmar-made High Class whisky brand become part of Pernod Riacrd’s portfolio, complementing the growth of Pernod’s Chivas and Ballantine’s whisky brands in Asia.

Holding the largest share in the partnership, Pernod will also take the lead in management of the production facilities, distribution and brand portfolio of Access Myanmar Distribution Company Ltd. (“AMDC”) – the current joint venture between Yoma Strategic, Win Brothers and Delta Capital Myanmar.

This will give the company access to more than 40,000 points of sale, 43 major wholesalers, around 230 delivery vehicles and around 250 staff dedicated to sales and marketing, as well as the High Class whisky brand.

“We are delighted to start our journey in Myanmar, a very promising and dynamic market which has seen tremendous economic progress over the past years,” said Philippe Guettat, chairman and CEO of Pernod Ricard Asia. “High Class whisky has already built a solid foundation in the market, and we are committed to growing the brand further by leveraging our experience and capabilities.”

Yoma Strategic’s High Class whisky brand will become part of Pernod’s portfolio as part of the partnership

Investment in Myanmar has been building in recent years, with several big wine and spirits producers positioning themselves within the market.

Most recently, ThaiBev, the Thailand-based spirits and beer maker, bought a 75% stake in Myanmar Distillery Company (MDC), the producer of Myanmar’s leading whisky brand Crown Royal and its supply chain, for S$1 billion (US$494.4m).

Elsewhere, in 2015 Japan’s Kirin Holdings took control of the Myanmar Brewery (MBL), the country’s largest brewery, in a deal worth US$560 million, while Dutch brewer Heineken opened a new brewery in the country after a 20-year absence – just two months after Carlsberg opened a $75m brewery there.

Increased investment has followed political upheaval in the country, with many major producers choosing to suspend their activities in Myanmar two decades ago when the country was hit by international sanctions due to the widely condemned actions of the country’s former military rulers.

Now democratised, international businesses are now returning to the country.

Pernod’s partnership with Yoma is expected to complete in 2019.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Sales Manager

The Drinks Business
London, UK

Assistant Brand Manager

Swallow Associates Ltd
Kings Langley, UK

Brand Manager

Swallow Associates
Kings Langley, UK

Buyer

Liberty Wines
London, UK

HR Co-ordinator

Liberty Wines
London, UK

Director of Sales

Gulf Brands International
Bahrain

Head of Trade Marketing

Lanson International UK Ltd
London W1

Customer Development Manager

Love Drinks
London, UK

Junior Brand Manager x2

Enotria&Coe
London, UK

Events Co-ordinator

Liberty Wines
London, UK

Champagne Masterclass

London,United Kingdom
10th Sep 2018

Cape Wine 2018

Cape Town,South Africa
12th Sep 2018

Bourgogne Masterclass

Brighton ,United Kingdom
18th Sep 2018
Click to view more

The Global Beer Competition

Deadline : 22nd August 2018

The Global Malbec Masters 2018

Deadline : 1st September 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more