Lotte has entered Myanmar’s beverage market as a bottler for PepsiCo, the company said last week.
Lotte Chilsung Beverage, the beverage division of the country’s fifth largest business conglomerate, launched LOTTE-MGS Beverage at the Traders Hotel in Yangon on January 29. A total of 150 high-ranking officials from Lotte and MGS as well as Myanmar political figures were present, the company said.
“Myanmar has great potential and will be a strategic location in Southeast Asia. I hope Lotte will lead the Myanmar market using its 64 years of beverage business know-how,” Lotte chairman Shin Dong-bin said at the inauguration ceremony.
The $81 million joint venture, 70 per cent owned by Lotte and 30 per cent by Myanmar soda company Myanmar Golden Star, will become the bottler for global soda giant PepsiCo. The company will release Pepsi Cola, 7-Up, Mirinda and more into the $150 million market that achieves more than 10 per cent growth every year.
Lotte will renovate the production line of MGS’ two plants in Yangon and Mandalay. The company is also planning to sponsor local festivals, football matches and K-pop events. The firm will take advantage of MGS’ 17 offices around the country for logistics.
Myanmar will be the fourth overseas market that Lotte Chilsung has entered following China, Russia and the Philippines.
Lotte has already opened three Lotteria fast food restaurants in Myanmar. The first opened in the crowded Junction Square shopping mall last April. Lotteria is planning to add 30 more by 2016. The company has also been investing in the construction of a hotel in downtown Yangon and will take over its operation on completion.
Source: ELEVEN Myanmar