05/25/2018 | Press release | Distributed by Public on 05/24/2018 19:37
Yoma Strategic and Pernod Ricard Announce Joint Venture,
Target Leadership in Myanmar's Whisky Industry
Pernod Ricard to acquire largest stake in new joint venture alongside Yoma Strategic, Win Brothers and Delta Capital Myanmar
Move makes Pernod Ricard the first major global producer of wine and spirits to enter Myanmar
Singapore, 25 May 2018 - Yoma Strategic Holdings Ltd. ("Yoma Strategic") and Pernod Ricard are delighted to announce that they intend to form a joint venture company which will focus on the production and distribution of whisky in Myanmar. Pernod Ricard will install an internationally experienced management team and become the largest shareholder in the new company1. The remaining equity will be split between Yoma Strategic, private equity firm Delta Capital Myanmar and U Htun Win and U Zaw Win ("Win Brothers"), both experienced professionals in
Myanmar's alcoholic beverages sector.
Pernod Ricard is the world's second-largest wines and spirits company, and its market entry represents the first time a major global producer of wine and spirits has established a formal presence in Myanmar. The move further consolidates Pernod Ricard's leading position in Asia, notably in the whisky category with Chivas, Ballantine's and Seagram's whiskies popular in the region. Myanmar will be the 86th country in which Pernod Ricard has established a direct affiliate2.
Mr. Melvyn Pun, CEO, Yoma Strategic stated, "It is a great privilege to join forces with Pernod Ricard, one of the world's largest wines and spirits companies. We are delighted High Class Whisky will become part of the Pernod Ricard family alongside a portfolio of leading brands. Pernod Ricard brings a strong commitment to the local market, with best practices in distribution, marketing and production that will meaningfully strengthen our operations."
Mr. Philippe Guettat, Chairman & CEO, Pernod Ricard Asia commented, "We are delighted to start our journey in Myanmar, a very promising and dynamic market which has seen tremendous economic progress over the past years. High Class Whisky has already built a solid foundation in the market, and we are committed to growing the brand further by leveraging our experience and capabilities."
The agreement will see Pernod Ricard take the lead in management of the production facilities, extensive distribution network and brand portfolio of Access Myanmar Distribution Company Ltd. ("AMDC"), the current joint venture between Yoma Strategic, Win Brothers and Delta Capital Myanmar. This includes an access to more than 40,000 points of sale, 43 major wholesalers in key demand centres, approximately 230 delivery vehicles and around 250 staff dedicated to sales and marketing3 as well as the High Class Whisky brand.
Mr. Htun Win, Chairman, Group of Win Brothers' Businesses said, "We very much welcome the entry of Pernod
Ricard to the partnership and are delighted to be working together to bring global best practices and operational excellence to the liquor industry in Myanmar."
Mr. Nick Powell, Managing Partner, Delta Capital Myanmar added, "We are delighted that our investment in AMDC has helped position it to become a leading Myanmar operator attracting global partnerships. We look forward to the continued development of the joint venture with Pernod Ricard."
The closing of the transaction is subject to completion of the restructuring of the High Class business as well as customary conditions. It is expected to take place in 2019.
1 Subscriptions will be made by Pernod Ricard upon the satisfaction of agreed terms.
3 AMDC internal data.
Pernod Ricard is the world's n°2 in wines and spirits with consolidated Sales of € 9,010 million in 2016/17. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard holds one of the most prestigious brand portfolios in the sector: Absolut Vodka, Ricard pastis, Ballantine's, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur, Mumm and Perrier-Jouët champagnes, as well Jacob's Creek, Brancott Estate, Campo Viejo and Kenwood wines. Pernod Ricard employs a workforce of approximately 18,500 people and operates through a decentralised organisation, with 6 "Brand Companies" and 86 "Market Companies" established in each key market. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption. Pernod Ricard's strategy and ambition are based on 3 key values that guide its expansion: entrepreneurial spirit, mutual trust and a strong sense of ethics. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 index.
Listed on the Main Board of the Singapore Securities Exchange Trading Limited (SGX-ST), Yoma Strategic Holdings Ltd. is a leading business corporation with a diversified portfolio of businesses in Real Estate, Consumer, Automotive & Heavy Equipment, Financial Services and Investments in Myanmar. Together with its partner, the SPA Group, the Group is taking a conglomerate approach to build a diversified portfolio of businesses in Myanmar. The Company was ranked in the top 5% of the Governance and Transparency Index 2017, ranked 26th out of top 100 largest Singapore companies in the ASEAN Corporate Governance Scorecard 2017 and won the Best Managed Board (Gold) Award at the Singapore Corporate Awards in 2016.
About Win Brothers
The Win Brothers own a leading distillery group with production facilities in both Yangon and Mandalay. Their core businesses include CO2 production, corn plantation & drying. They are also the owner-operator of Myanmar's only float glass production-factory in Kyaukse, Mandalay.
Since 2013 Delta Capital Myanmar provides growth capital to leading entrepreneurs and businesses active across key growth sectors of Myanmar's economy. It has assets under management of over USD 110 M. Investors in Delta Capital
Myanmar's funds include leading family offices as well as global institutional investors. Delta Capital Myanmar's first fund, Myanmar Opportunities Fund I, has made five investments and its second fund, Myanmar Opportunities Fund II, has made two investments to date. Delta Capital Myanmar's team has dedicated investment professionals with experience in private equity, investment banking, management consulting and legal practice, and a deep understanding of the Myanmar context.
For enquiries, please contact:
Ms Jane Kwa, Tel: (65) 9759 2602 or (95) 09 79311 3587 Email: [email protected]
Group Media contact:
Mr Joshua Hughes, Tel: (95) 976 492 6896 Email: [email protected] For any queries, please contact Cogent Communications: