Thai Beverage in $1bn deal for Myanmar Distillery Company

square44 launches luang prabang craft beer - artist edition
For those still questioning the value of branding & packaging design – check out this great case study.
OOPS! We Did it Again.. After helping Ruslan Vodka in Nepal Double in Value, Here’s an even sweeter story of how we created our first Billion Dollar Brand!

Myanmar Distillery’s Valuation Increases from USD 200 million to USD 1bn in less than 2 years
Square44 played a vital role in the development of Myanmar Distillery’s branding strategy and product portfolio. With over 75 completed projects in the period between 2010 and 2017, Square44 was responsible for all mayor new product launches, several brand & portfolio harmonization projects, continuous limited edition development work, corporate branding work and category extension work – check out a the case study & story. The first big commercial success we helped create for the management team of Myanmar Distillery came in December 2015 when private equity firm TPG capital acquired a 50% stake in Myanmar Distillery for a price that is said to have ranged in between 100 and 200 million USD, establishing a valuation of the company in between 200 and 400 million dollars.

Now, merely 2 years later TPG divested its stake in Myanmar Distillery, selling its stake to ThaiBev for nearly 500 million dollars – raising the valuation of Myanmar Distillery from 200 million USD to 1 billion USD.

So, branding & packaging cost – an expense or an investment in massive value creation?
For more see:
TPG Buys 50% stake in Myanmar Distillery Co (December 8th, 2015)

Thai Beverage in $1bn deal for Myanmar Distillery Co (October 16th, 2017)

Here’s The Original Article:
square44 - value of packaging design thai bev buys myanmar distillery

Value of packaging design thai bev buys myanmar distillery – square44

Thai Beverage has bought a 75% stake in Myanmar Distillery Company (MDC), the maker of Grand Royal whisky, for $1 billion.

Texan private equity firm TPG sold its 50% stake to ThaiBev for a reported $494.4 million. The deal also includes MDC’s supply chain business.

MDC is Myanmar’s largest spirits company, and along with Grand Royal it also makes a range of other whiskies and gins at its sites in Mandalay and Yangon.

The move sees ThaiBev, which already controls 90% of the drinks market in Thailand, gain access to Myanmar’s growing spirits market. Its brands include Chang Beer and SangSom Rum.

In the first nine months of its fiscal year, until June 2017, ThaiBev’s sales dropped 6% year-on-year to $4.3 billion, as a result of slow economic growth and the observance of a national mourning period in Thailand.

TPG partner Ganen Sarvananthan said: “The investment from Thai Beverage, one of Asia’s leading spirits groups, is a testament to MDC’s extensive platform and strong management team. We wish them continued success as they secure further opportunities with their new partners.”

The deal follows on from ThaiBev’s 2013 acquisition of Singapore beverage producer Fraser & Neave for $11.2 billion.

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