30 percent of beer in Myanmar smuggled illegally: report

Up to 30 percent of all beer sold in Myanmar may have been smuggled into the country illegally, according to a report released Monday by the market research firm Euromonitor International.

Myanmar has a blanket ban on beer imports. Foreign beer brands such as Heineken, Carlsberg, Tiger, and Kirin are produced locally, often through joint ventures with local beer companies.

Nonetheless, nearly a million hectoliters of illegal beer flowed into Myanmar in 2016, costing the government between US$48 million and US$52 in tax revenue.

An estimated 96 percent of the illegal beer enters Myanmar by land or by sea, and 95 percent was produced by major Thai beer brands, such as Chang and Singha.

Euromonitor’s research found that affordability is the main driver of demand for illegal beer. A single 330mL can of smuggled beer is, on average, 35 percent cheaper than a can of locally made beer in stores.

Commenting on the report, a spokesperson for the Brewers Association of Myanmar told Mizzima: “The high prevalence of illicit beer as highlighted in the Euromonitor report is a concern not only for local beer producers but also for consumer safety, government revenue, and the economic development of Myanmar.”

He went on: “Smuggled beer is a third cheaper than locally produced beer because it pays no tax. On the contrary, the local beer industry paid K150 billion (US$110 million) in special goods tax last year and is proud to invest and provide jobs in Myanmar. The Brewers Association of Myanmar is willing to work with all stakeholders to raise awareness and support the government in its increasing law enforcement efforts to help tackle illicit trade.”

The Euromonitor report says 75 percent of smuggled beer is canned, which is the easiest kind to transport. Around 80 percent comes over the Thai border, while the rest comes over the Chinese border. Most smuggled beer is sold in border areas than elsewhere in Myanmar.

The Brewers Association of Myanmar said: “Identifying illicit beer in Myanmar is relatively easy – it is all brands not produced in Myanmar. Beer producers in Myanmar offer a range of local and international brands, and consumers can check the labels on their beer to confirm it says ‘Made in Myanmar.’”