Jacob Aarup-Andersen has started his tenure as CEO of Carlsberg, with the group also issuing a condemnation of recently discovered funding related to its previous business in Myanmar.
The two separate announcements were made last week, with Aarup-Andersen taking the reins from Cees ‘t Hart on Friday. A day earlier, the brewer revealed the findings of an internal investigation into its practices in Myanmar dating back to the founding of the Dagon Brewery joint venture at the end of the last century.
The investigation found that despite stating publicly in 1996 that it would not invest or operate in Myanmar, Carlsberg provided a loan to a Malaysian partner to start up Dagon in association with Myanmar Economic Corp and Myanmar Golden Star. At the time, the European Union’s “common position” included a pledge not to provide aid to the country “other than strictly humanitarian assistance”.
Myanmar was under a military dictatorship until 2011 when authorities acceded a limited amount of control. Prior to this, Carlsberg had also bought out its partner in Malaysia in early 2004, but sold the stake in Dagon when firmer sanctions were introduced by the EU later that year.
“The actions uncovered during the investigation are not in line with the standards for business conduct found in Carlsberg today,” the company said last week. “Although almost 30 years have passed, we still strongly condemn the actions by management at the time. The managers involved with the actions are no longer employed by Carlsberg.”
The company has been back in Myanmar since 2012 with Myanmar Golden Star, commencing construction of a brewery in the country a year later. “Through our presence, we believe that we impact the local community for the better,” Carlsberg added. “We directly employ 430 people and support around 30,000 jobs in the local economy.”
Carlsberg is not the only multinational brewer to have a business in Myanmar, with Heineken also running a JV – with Alliance Brewery Co – in the country.
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