Diamond Star signs with Pepsi

Diamond Star, a 50-year-old conglomerate in Myanmar, foresees great business potential in the distribution of PepsiCo's carbonated drinks after signing an agreement on Thursday.

US soft drinks giant PepsiCo is just one of the many international firms racing to invest in the resource-rich Southeast Asian country. The pact gives Diamond Star - one of the largest packaged goods distributors in the country - the exclusive rights to import, sell and distribute Pepsi-Cola, 7-Up and Mirinda. The high-profile Diamond Star Company is owned by Dr U Ko Ko Gyi, a member of the National Economic and Social Advisory Council. The import-export firm trades in wheat-flour products, Amo brand fertilisers, Premier brand instant coffee and medicines. It runs the Capital Hypermarket and also won the auction for Yangon's Padonmar Theatre. Indra Nooyi, PepsiCo's chairman and chief executive, admitted that Myanmar had great potential. "PepsiCo is a strong and growing business ... and we are constantly looking for new growth opportunities that will put our food and beverage brands in the hands of more consumers," Nooyi said. PepsiCo is also exploring investment opportunities in agriculture and local manufacturing operations in Myanmar. PepsiCo has decided to return to Myanmar for the first time since 1997, after a civilian government took office last year and the country embarked on democratic reforms, releasing hundreds of political prisoners, including Aung San Suu Kyi. Some foreign powers have also started lifting some sanctions, prompting a stampede of international investors looking for new deals. Last week, the World Bank and the Asian Development Bank opened offices in Yangon, marking a possibility that Myanmar will soon regain access to the international financial market. Myanmar is also becoming a fast-growing tourism destination in Southeast Asia. Last year, tourism in Myanmar grew by 26 per cent, followed by Cambodia and Thailand at 20 per cent and Vietnam at 19 per cent, the World Tourism Organisation (UNWTO) said. Two weeks ago, the UNWTO held workshops in Yangon and Nay Pyi Taw to discuss strategies to help the industry grow. UNWTO consultant Hans Carl Jacobsen said tourists would be more interested in home-stay programmes, but warned that the focus should be on a value-based strategy, not a volume-based one. The challenge now is to manage the influx of tourists so the benefits flow down to the people, which will help combat poverty and help the country conserve its natural and cultural resources for future generations, he said.

Sourced: nationmultimedia