On Monday, a spokesperson for Nestle announced that the Swiss food giant would halt all production in Myanmar, making it the latest company to withdraw from the country following the military coup that occurred two years ago.
Since the coup, Myanmar has been embroiled in a state of turmoil, with widespread unrest and a deteriorating economy. In response, numerous foreign companies, including TotalEnergies and Chevron, as well as Norwegian telecoms operator Telenor, have all left the market.
Nestle sells popular products in Myanmar, such as Nescafe instant coffee, Maggi noodles, and Milo chocolate malt beverage. However, a local firm will now be responsible for marketing and distributing Nestle products from Thailand, Malaysia, and the Philippines instead. The spokesperson added that Nestle would do everything it could to support those affected by this decision. Currently, Nestle employs 138 people at its factory and head office in Myanmar.
A spokesperson told AFP, Due to the “current economic situation” Nestle’s factory in the commercial hub Yangon, as well as its head office, would “cease operations”.
Myanmar has had a significant influx of investors after the military relaxed its grip on the country in 2011, leading to democratic reforms and economic liberalization. However, the fallout from the 2021 coup has severely damaged the economy, resulting in more than a million people losing their jobs, according to the International Labour Organization.
The coup has also sparked renewed fighting with ethnic rebel groups, as well as the emergence of dozens of “People’s Defence Forces” fighting against the junta. Since seizing power, the military has killed over 3,000 people who were dissenting and arrested more than 19,000 people, according to a local monitoring group.
Nestle’s worldwide sales reached approximately $95 billion last year, and its decision to cease production in Myanmar is a reflection of the company’s commitment to social responsibility and ethical business practices. As the situation in Myanmar continues to evolve, it remains to be seen how other international companies will respond to the country’s political and economic instability.
