Nestlé is set to close its factory and head office in Yangon, Myanmar, as it looks to transition to a more sustainable business model.
The company began distributing its products in Myanmar in 1991, creating high-quality items at affordable prices for consumers in the country. Nestlé has since expanded its presence in Myanmar with the appearance of brands such as Nescafé, Milo, Lactogen, Cerelac and Maggi.
A spokesperson for Nestlé told FoodBev that the company has appointed Myanmar Distribution Group (MDG) as its distributor for the country, responsible for the marketing and distribution of Nestlé products.
Myanmar has been impacted by violence and instability since 2021 when a military coup drove out the country’s leader, Aung San Suu Kyi, and her government. Thousands have been killed nationwide since the coup began, according to CNN.
Nestlé’s spokesperson commented: “For some time now, we have been looking at how we can make the Nestlé Myanmar business sustainable. Recently, we conducted an evaluation on the best approach to do so. The evaluation concluded that transitioning to a distributor model makes the most sense in the current economic situation and will contribute towards our long-term viability in Myanmar.”
The spokesperson added that consumers can expect to enjoy the same Nestlé brands imported from Thailand, Malaysia and the Philippines. “We will continue to invest behind the brands we sell in the country, working with our local partners in distribution, retail and with the media,” they said.
Following the transition, Nestlé’s Dagon factory near Yangon and its head office in Yangon will cease operations.
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