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Monday, June 17, 2024

Swiss Food Conglomerate Nestle Halts Operations In Myanmar

This Week

The Swiss food company Nestle has decided to halt all production in Myanmar’s commercial capital, Yangon, a spokesperson from the company said.

Citing that “to be able to make Nestle Myanmar’s business sustainable, it will be better to move to distributor makes more sense in this economic situation”, the spokesperson wrote in an email.

The spokesperson did not give a time frame for the factory shutdown. Nestle’s Myanmar plant was used to produce and sell Nescafe instant coffee, Maggi instant noodles, and Milo Chocolate Malt Beverage. 

The factory was established in 2013 after Myanmar moved from military rule to a civilian government coming to power in 2011. The plant and head office had 138 employees at the time the decision of the shutdown was made.

Barrons reported that the economy of Myanmar has been battered by the fallout of the 2021 coup, with more than a million people losing their jobs, according to the International Labour Organization.

Current economic turmoil in Myanmar has not only edged Nestle out of the country but Norwegian wireless carrier Telenor and France’s TotalEnergies, which operated an offshore gas field have also seized operations in the nation.

With the Myanmar junta extending the state of emergency by another six months in February, businesses continue to find it increasingly difficult to operate under the status quo and are often faced with no choice but to exit the market.

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