Japanese Kirin Beer Faces Conflict Over Ending Joint Venture with Myanmar Military Junta

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Japanese Kirin Brewery is facing conflict over the suspension of its joint venture with the Myanmar military junta.

According to local media on the 25th, Kirin issued a statement the day before opposing Myanmar Economic Holdings Limited (MEHL), operated by the military, filing a petition with the court to liquidate the joint venture 'Myanmar Brewery.' Myanmar Brewery once produced 80% of the beer sold in Myanmar.

Kirin stated, "If the petition is accepted, MEHL will be able to take control of the liquidation process," and requested, "Please dismiss the petition as it violates the joint venture agreement and raises doubts about the fairness and appropriateness of the liquidation procedure."

The hearing on the liquidation petition for Myanmar Brewery is scheduled for the 10th of next month.

Since the coup on February 1st in Myanmar, citizens opposing the military have boycotted products produced by military-operated companies. Myanmar Brewery, in which Kirin holds a 51% stake and MEHL holds 49%, saw its third-quarter profits decrease by about 50% compared to last year.

Earlier this month, Kirin announced plans to terminate the joint venture contract with the Myanmar military by next month. However, MEHL rejected Kirin's proposal. Nevertheless, Kirin stated, "We plan to continue business in Myanmar even after ending the joint venture with the military."

Since the coup, companies from more than ten countries including the United States, Germany, Japan, Singapore, Australia, Thailand, Malaysia, Norway, Hong Kong, and Taiwan have announced plans to withdraw or terminate their businesses in Myanmar.