TOKYO -- Myanmar Brewery will ramp up its beer production capacity by about 10% to keep up with increasing local consumption amid economic growth.
The group member of Japan's Kirin Holdings will spend hundreds of millions of yen (100 million yen equals $917,200) to add equipment such as fermentation tanks, a key component in beer brewing, at its plant in Yangon. With the installation work already underway, the new equipment is slated to begin operation by year-end to increase production of the signature Myanmar Beer brand. This will raise the company's capacity, which stands at just over 200,000 kiloliters a year, by 30,000kl.
Myanmar Brewery sold 220,000kl of beer last year, commanding 80% of the Southeast Asian nation's market. Beer demand is growing, particularly among young people, with sales more than doubling over the last three years.
And competition is heating up, with Danish brewer Carlsberg and the Netherlands' Heineken each launching production with local partners last year. Both have been lifting sales, offering low-priced products in addition to their signature brands.