Korea-based Lotte Chilsung Beverage Co Ltd said it has formed a joint venture with Myanmar Golden Star (MGS) Beverage Co Ltd to bottle and distribute soft drink products including Pepsi.
Lotte Chilsung Beverage Co will maintain a 70 percent stake in the business, and MGS will maintain the rest. The capitalisation of the joint venture is $81 million.
The joint venture investment was approved by an announcement of Myanmar Investment Commission (MIC) in Nay Pyi Taw last week.
Byoung-Tak Hur, managing director of Lotte-MGS Beverage Co Ltd, said through this investment to bring Pepsi production back to Myanmar, the company seeks to “bring benefits to the people of Myanmar.”
“We will create thousands of good local jobs. We will provide career training. We will work with local suppliers. Lotte Chilsung Beverage Co is honoured and excited to have this opportunity to be part of Myanmar’s future and to be partners with the MGS Beverage Company.”
This would mark the first return of Pepsi production to Myanmar in 20 years, and establishes further expansion of Lotte Chilsung’s business in Asia, Lotte said in a statement.
The joint venture will manage regional sales organisations in 17 major cities throughout Myanmar, Lotte said.
The relationship between Lotte and PepsiCo dates back over three decades to 1976 in Korea. Lotte Chilsung Beverage Co, the leading beverage manufacturer in Korea, also operates beverage businesses in China and the Philippines.
Headquartered in Seoul, Lotte Chilsung Beverage Company’s product portfolio includes carbonated soft drinks, juices, coffees, teas, health beverages, water and alcoholic drinks. Its products are marketed under various brand names, such as Chilsung Cider, Milkis, Let’s Be, Cantata, Ceylon Tea, SacSac, Trevi, Icis, Delmonte, Today’s Tea, Pine Bud drink, and Hot 6iX.
It is also the sole bottler, retailer and supplier of Pepsi products in Korea, and exports its products to 30 different countries including Russia, Japan, China, Vietnam and the US.