Thai Bev acquires 75% stake in Myanmar Distillery

Thai Beverage Public Company has acquired a 75% stake in Myanmar Distillery Company, the producer of Grand Royal whisky.

Thai Beverage acquires majority stake in Myanmar Distillery, owner of the Grand Royal whisky range

The deal includes a 75% stake in Myanmar Supply Chain and Service Co and Myanmar Distillery Company (MDC) from four third-party investors including equity firm TPG.

Founded in 1995, MDC is the largest spirits company in Myanmar and produces a range of spirits including whisky and gin. The deal includes the company’s two distilling, blending, and bottling facilities in Yangon and Mandalay under its Grand Royal brand.

The deal will allow Thai Bev to access the spirits market in Myanmar as the company’s seeks to expand its business in south east Asia.

“When we invested in MDC, we were excited to be partnering with a market leader that had an experienced management team and an extensive, nationwide network. TPG was pleased to have had an opportunity to support them and introduce new initiatives to improve operations and earnings in areas such as lean manufacturing, e-procurement and branding. These initiatives resulted in considerable growth in the business over a short period of time,” said Ganen Sarvananthan, partner at TPG.

“The investment from Thai Beverage, one of Asia’s leading spirits groups, is a testament to MDC’s extensive platform and strong management team. We wish them continued success as they secure further opportunities with their new partners.”

Thai Bev sales in the first nine months of its fiscal year, from October 2016 to June 2017, dropped six percent year-on-year to 142 billion baht ($4.3 billion), due to slow economic growth and the observance of a national mourning period.

The Spirits Business has approached Thai Beverage Public Company for further comment.