Myanmar Beer commands about two thirds of the country’s beer market by volume. MBL has moved swiftly to overhaul both its image and products. So the competitive situation in the market will definitely be changing and be more and more fierce.MEHL is targeted by US sanctions, which prohibit US businesses from working with the group.“There are a lot of challenges in the market,” said Mr Hiroshi Fujikawa, who became MBL managing director this year after Japan’s Kirin purchased a 55 percent stake for 560 million from Singaporean firm Fraser and Neave (F&N).Just months after opening, Heineken is doing so well that it plans to double capacity at its Yangon facility to 50 million litres from 25 million litres, said Mr Lester Tan, managing director at the APB Alliance Brewery Company which producesHeineken.The history of investment of foreign brewers in MBL — even during sanctions — has helped keep it in contention. F&N had been involved in the firm since the mid-90s.

Now, Myanmar Brewery Limited, the military-linked producer of the old favourite Myanmar Beer and four other brands, faces stiff competition from global giants for a rapidly growing consumer market set to lift beer consumption from among Asia’s lowest.Research firm Euromonitor International estimates the 375 million market will quickly grow to be worth 675 million in 2018.One of the few reminders of the company’s past is its airline code, UB, a throwback to the country’s former name, Union of Burma.As in other industries in Myanmar’s emerging economy, one ofthe biggest challenges to growth for the brewers is finding skilled workers.

MEHL is one of the country’s two major military-backed conglomerates with sprawling interests in industries, ranging from gem production to supermarkets.Drinkers buying a beer at Yangon’s roadside bar shacks used to face a limited choice: more likely than not, they would order a mug of Myanmar Beer, sometimes with a shot of coarse whisky to give the light local brew an extra kick.The company has accelerated an expansion plan it had expected to execute after three or four years, he said.Capturing the loyalty of the growing number of young drinkers will be as important as keeping the existing customer base, said China o-ring Mr Fujiwaka.State-owned telecoms provider Myanmar Posts and Telecommunications struck a deal with Japan’s KDDI Corp and Sumitomo Corp last year to compete against foreign telecoms firms in the newly-opened sector.State-run Myanmar Airways rebranded itself as MyanmarNational Airlines last year.2 litres per person in 2013, a tenth of the volume washed down in neighbouring Thailand.“Heineken volumes have just gone through the roof, it has taken us all by surprise,” Mr Tan said. Kirin has started taking staff to Japan for training, he added. MBL has moved swiftly to overhaul both its image and products to appeal to Myanmar’s new consumers. And the company has not sat complacently on its market dominance — like other state-backed firms. The country’s 51 million population consumed an average of 3.“If I take a look at the individuals, the workers here, there is a lot of potential to be improved,” Mr Fujikawa said of MBL and MEHL. MBL has moved swiftly to overhaul both its image and products. Heineken’s economy brand Regal Seven is “slowly chippingaway” at Myanmar Beer’s competitive advantage, he said.Still, Myanmar Beer commands about two-thirds of the country’s beer market by volume.

And the firm has not sat complacently on its market dominance — like other state-backed firms. Kirin’spurchase came following a dispute between F& N and Myanmar Economic Holdings Limited, a military-backed conglomerate that holds a 45 percent stake in the brewery.”While Heineken and Carlsberg were building their breweries, MBL rolled out a sleeker bottle, ramped up its promotional efforts and began targeting a younger generation by sponsoringhip-hop and electronic dance music concerts, a work-around to the country’s strict ban on alcohol advertisements.These days there is more variety, thanks to the arrival of Denmark’s Carlsberg and its Dutch rival Heineken, which began brewing in Myanmar this year as economic reforms uncorked a market protected under military rule. And the firm has not sat complacently on its market dominance — like other state-backed firms.MPT plans to start selling pre-loaded SIM cards to tourists for a couple of dollars, unthinkable just a few years ago when aSIM cost hundreds of dollars and mobile phones were a rarity.“We have to be innovative,” he said.“One is that Heineken and Carlsberg came into this market this year and launched premium and local beer products. “They do not want to drink what their fathers drank