F&N eyes market potential as it returns to Myanmar with Emerald Brewery

Singapore

CONSUMER group Fraser and Neave (F&N) has commenced operations of Emerald Brewery Myanmar as it seeks to take another crack at the fast-growing market.

Emerald Brewery, a joint venture between F&N and local partners, has established a greenfield brewery, lo-cated in Hlegu Township in Yangon, to brew Chang Lager Beer and distribute it to the rest of the country. This marks F&N's return to the Myanmar market after it previously sold a 55 per cent stake in Myanmar Brewery for US$560 million in 2015.

F&N's capital investment of US$70 million has been deployed towards building the modern brewery, which will deliver an annual beer production capacity of 500,000 hectolitres; growing logistics including sales and distribution operations; as well as driving marketing and staff capabilities. The brewery will also be able to facilitate a boost in production capacity in the coming years.

The facility has invested in new technology, which will deliver water, electricity and thermal energy savings, while a wastewater treatment system from Japan has been installed. Ninety per cent of treated wastewater will be used for gardening and brewery upkeep. In addition, solar energy will be used to power

up to 30 per cent of all brewery operations.

Koh Poh Tiong, chairman of the F&N Board executive committee, said: "We are pleased to re-establish F&N's presence in Myanmar's beer market and our investment reflects the great potential we see in this fast-growing market. We have worked swiftly to build our new brewery, operations and business, and are confident that our two decades' experience in Myanmar will propel our new venture forward."

The counter closed at S$1.73 on Wednesday, down one cent.