On Heineken

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Date: Fri, 9 Aug 1996 11:11:03
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Heineken did not pull out yet!

Heineken announced July 11 that it will cease all its operati-
ons in Burma. This decision followed an international campaign
by groups in Burma, the US and the Netherlands who had called
the company to do so, and stop its cooperation with one of the
most oppressive regimes in the world. 
Heineken had planned to build a brewery in Rangoon through a
venture between its Asia Pacific Breweries (APBL) unit, which
was to have a 60 per cent stake, and Union of Myanmar Economic
Holding Ltd (UMELH), a public company which is essentially
controlled by the military and under accusation of laundering
of drug money. 
The Myanmar brewery has now been bought from APBL for an
undiscloded price by its main shareholder Fraser & Neave, a
Singapore based company, with whom Heineken intensively coop-
erates since 65 years. The Fraser & Neave Group owns 50% of
the shares of APB, Heineken owns 42,5% of the shares and a 50%
management share. So basically Heineken turned the job over to
an old partner with whom it is still very much linked through
their common particpation in APBL. The brewery will produce
Tiger Beer, as was also planned by APBL. This Tiger-beer will
be brewed under APBL-licence. APBL has 15 breweries all over
Asia and Tiger beer is their main product. But will then the
future Myanmar profits not simply end up at APBL? Heineken
spokesperson Margriet de Meier: "All our personell has left.
We don't want to have anything to do anymore with Burma and we
don't want Heineken or APBL to get anything of the future
profits of the brewery. Therefore we are currently investiga-
ting a legal construction that will enable that all profits
coming from Burma will be isolated from APBL-money and will go
to Fraser & Neave."
Heineken claims to be ending all exports to Burma. "Not only
have we withdrawn, we will not have any interference in Burma
at all. Out means out." In a rather childish attempt to reta-
liate, the SLORC announced August 5 that the consumption of
Heineken and Carlsberg will be banned from Burma. State tele-
vision warned beer drinkers that it was their patriotic duty
to avoid Carlsberg and Heineken. This sounds odd after Heine-
ken's statement that they would end all exports to Burma.
Plenty of reasons to keep a close look on Heineken!



Kees Kodde                                     1091 AD Amsterdam 
Camperstr. 107                       tel. +31 20 6631737/6682236
fax: +31 20 6650166                        kees@xxxxxxxxxxxxxxxx