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PepsiCO pulls out from Burma (The A
Subject: PepsiCO pulls out from Burma (The Asian Age, 29/1/97)
PepsiCo pulls out from Burma
The Asian Age (New Delhi), 29/1/97.
Bangkok, Jan. 28: US soft drink giant PepsiCo Inc, which sold its stake
in a Burmese venture last year owing from g pressure human rights
groups, has pulled out of the country, a spokesman said on Tuesday.
A PepsiCo spokesman said ,by, telephone from New York .the company had
severed ties with its bottler in Rangoon. "We did indicate plans to
discontinue all sales of our products there," he said.
Last April Pepsi sold its 40 percent stake in a venture with Pepsi Cola
Products Myanmar, following increased lobbying by pressure groups in the
But the company still had an exclusive five-year agreement with its
former franchise bottler, Pepsi Cola Products Myanmar, which was making
four different Pepsi soft drinks.
Thein Tun, chairman of the Burmese company, was not available for comment
on Tuesday. But after the initial pull out last year he told Reuters he
had a firm bottling arrangement deal with Pepsi which would continue to
supply syrup to make the soft drinks in Burma.
The final pull out comes after repeated calls by Burmese democracy leader
Aung San Suu Kyi for global s to desist from investing in Burma until the
political and human rights and Suu Kyi have accused Burma's military,
which took power violently suppressing nation-wide protests, of human
The United States Senate passed a bill last year allowing President Bill
Clinton to impose economic sanctions on Burma if political and human
rights situation deteriorates.
A statement issued by the Free Burma Coalition and obtained by Reuters on
Tuesday said the Pepsi decision, which went into effect on January 15,
was a key step towards drawing attention to the plight of Burma. "The
Pepsi victory will be a major morale booster for forces of democracy in
Burma fighting under the leadership of Aung San Sun Kyi the National
League for Democracy," Free Burma Coalition Co-ordinator. Zarni said.