Virginia Tobacco Company shuts down amid boycotts over ties to Myanmar’s military

The Virginia Tobacco Co., Ltd. (VCTL), manufacturer of some of Myanmar’s most popular cigarette brands, is ending its operations after facing widespread boycotts over its links to the country’s military. The company, known for its Red Ruby and Premium Gold cigarette brands, is a joint venture between military-owned conglomerate the Myanmar Economic Holdings Limited (MEHL) and Singapore-based Rothmans Myanmar Holdings Singapore. The move follows a decision made by the company’s directors at a February 29 board meeting to proceed with the dissolution under relevant legal provisions. Established in 1993, the company has been a significant player in the domestic tobacco market, holding a market share that previously made it one of the leading brands in Myanmar. Following the military coup in 2021, VTCL faced increasing scrutiny and backlash from the public, as well as pressure from activists and monitor groups such as Justice for Myanmar (JFM). “VTCL is an integral part of the Myanmar military cartel and as such, it’s been hit by a mass boycott for more than three years and its parent company MEHL has been sanctioned,” said JFM spokesperson Yadanar Maung, adding that she welcomed VTCL’s closure as a sign that economic pressure on the junta is working. Hla Myo, the managing director of MEHL, refused to comment on the company’s dissolution or provide any further details. However, Moe Kyaw, an appointed liquidator from Win Consulting, confirmed the ongoing dissolution process. He stated that all assets and shares are being divided among the relevant shareholders, and the dissolution is nearing completion. The company employed approximately 1,000 people and operated its factory in the Mingaladon Industrial Zone near Yangon. Despite the dissolution of VTCL, critics of the regime say they still have concerns regarding the future of military-owned businesses in the tobacco sector. “It’s important to stay vigilant and ensure that any successor military-owned tobacco company cannot evade boycotts and sanctions,” said Yadanar Maung. In the wake of VTCL’s decline, alternative products, such as Red & Blue cigarettes, have emerged, reportedly produced by two affiliated companies—military-owned Myawaddy Trading Limited and Golden Hill International Ltd, a domestic private company.These brands have reportedly increased production since late 2022, as the military seeks to maintain its foothold in the tobacco market despite ongoing public dissent.

Virginia Tobacco Company shuts down amid boycotts over ties to Myanmar’s military

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