Kirin bought into Myanmar with a military partner — when the coup came, it had no way out

Kirin Holdings, Japan's largest beer company, entered Myanmar in 2015 by purchasing Fraser and Neave's 51% stake in Myanmar Brewery and Mandalay Brewery for roughly US$500 million. The remaining 49% was held by Myanma Economic Holdings Limited (MEHL), a conglomerate controlled by the Myanmar military's Union Solidarity and Development Association. Myanmar was one of Asia's fastest-growing beer markets, and Kirin saw the joint venture as a gateway to Southeast Asia.

Human rights groups criticised Kirin's partnership with MEHL from the start, citing the military's record of human rights abuses. Kirin suspended dividend payments to MEHL in November 2020, months before the military coup. On February 1, 2021, the Myanmar military overthrew the elected government of Aung San Suu Kyi, triggering international sanctions and a wave of corporate withdrawals from the country.

Kirin announced its intention to exit Myanmar in 2021. After lengthy negotiations, the company completed a share buyback scheme on June 30, 2022, selling its 51% stake back to the joint venture for 22.4 billion yen (about US$243 million). The sale price was significantly lower than the original investment, and Kirin stated it would make no profit on the transaction. The buyback was structured to transfer ownership to the military-linked partner, critics said.

The exit was denounced by human rights groups as 'irresponsible' — by selling to the military partner rather than liquidating the business, Kirin effectively handed the Myanmar military a valuable asset that continued generating revenue. The company defended the buyback as the only option that protected local employees, business partners, and communities.