HEINEKEN ABANDONS BURMA VENTURES OV

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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.

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