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HEINEKEN ABANDONS BURMA VENTURES OV
- Subject: HEINEKEN ABANDONS BURMA VENTURES OV
- From: bcn@xxxxxxxxx
- Date: Fri, 12 Jul 1996 05:15:00
Subject: HEINEKEN ABANDONS BURMA VENTURES OVER HUMAN RIGHTS
Financial Times July 10, 1996
by Gordon Cramb in Amsterdam
Heineken of the Netherlands yesterday pulled out of a half built brewery
venture in Burma and said it would also halt exports to the country in
response to international pressure over human rights.
'Every billboard in the country will come down. Out is out,' the
Amsterdam-based group said yesterday.
Heineken's move follows tuesday's decision by Carlsberg of Denmark to drop
out of a rival project and deals a further blow to Burma's military rulers,
who have been seeking inward investement by Western Multinationals.
It follows the intensification of a US campaign calling for a boycott of
products made by companies doing business in Burma, which is now called
Myanmar by the ruling state law and order restoration council (Slorc).
Heineken, the leading foreign brand in the US beer market, was vulnerable to
such pressures. Mr Karel Vuursteen, chief executive, said that since its
decision to enter Burma 18 months ago, 'public opinion and issues
surrounding this market have changed to a degree that could have an adverse
effect on our brand and corporate reputation'.
Heineken is to sell its indirect 25.5 percent stake in Myanamar Brewery to
Fraser and Neave, the Singapore brewer of beer of Tiger Beer which has long
been its main Asian partner. Both brands were to have been produced at the
more than half-built plant in the Burmese capital Rangoon, which was due to
have opened this year. (Actually it is postponed to january '97, BCNN)
PepsiCo of the US earlier this year agreed to sell its stake in a Burmese
cola bottling franchise after loosing several US suplly contracts, including
college campuses. But the soft drinks group is still under pressure beacuse
it supplies syrup to the factory for production under license.
Heineken's 30 US$ project was further forward than Carlsberg's, which was at
the advanced planning stage. The Dutch brewer said it had been swayed by
public opinion and its own trade unions.
Ms Aung San Suu Kyi, the Burmeses opposition leader whose national League
for Democracy's election victory six years ago was annulled by the Military,
has urged foreign companies and tourists to stay away while Slorc retains
its grip. Slorc-controlled companies were local partners in each of the
brewing ventures.
The US boycott has been led by the Boston-based Franklin Research and
Development Corporation, which manages about 500m US$ in ethical investment
funds. Mr Simon Billinness, senior analyst, depicts Burma as 'the South
Africa of the 1990's ', saying that trading partners will come under
increasing presure. Oil companies are another target partners will come
under increasing for campaigners. California-based Unocal, together with
Total of France, is building a pipeline to export offshore natural gas to
Thailand. Texaco and Arco are negotiating with Slorc offshoots.
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BCN is onafhankelijke stichting. Doel: Nederlandse samenleving informeren
over Burma. Het initieert en co-ordineert aktiviteiten die democratisering
en duurzame ontwikkeling bevorderen. Het geeft een positieve bijdrage aan
een constructieve dialoog tussen de diverse groeperingen.
BCN
Paulus Potterstraat 20
1071 DA AMSTERDAM
THE NETHERLANDS
(31)20-6716952 (tel)
(31)20-6713513 (fax)
visit these sights:
http://sunsite.unc.edu/freeburma/freeburma.html
http://www.uio.no/tormodl
http://danet.wicip.org/fbc/freeburma.html