Nestlé leaves Myanmar
Factory and headquarters in Yangon closed: products entrusted to a local distributor
Nestlé will close its factory and headquarters in Yangon, Myanmar in a bid to shift to a more sustainable business model. A spokesman for the multinational said that the company has appointed Mdg, or Myanmar distribution group, as distributor for the country: it will be responsible for the marketing and distribution of Nestlé products. As a result of the transition, the Dagon plant near Yangon and the Yangon headquarters will cease operations
The company began distributing its products in Myanmar in 1991, creating high-quality items at affordable prices for consumers: it has since expanded its presence in Myanmar by bringing brands such as Nescafé, Milo, Lactogen, Cerelac and Maggi. However, since 2021 Myanmar has been hit by a strong wave of violence and political instability: this occurs after the military coup that removed the leader Aung San Suu Kyi and her government. According to CNN, thousands of people have been killed across the country since the start of the coup.
"We have been evaluating for some time how to make Nestlé's business in Myanmar sustainable - underlines the spokesman -. We recently conducted an assessment on the best approach to do so, concluding that switching to a distribution model makes the most sense in the current situation economy and will contribute to our long-term viability in Myanmar". He added that consumers can expect to enjoy the same Nestlé brands imported from Thailand, Malaysia and the Philippines. "We will continue to invest in the brands we sell in the country, collaborating with our local partners in distribution, retail and the media"- concludes the spokesperson.
EFA News - European Food Agency