Singapore-listed Asia Pacific Breweries (APB) is making a
further push into Mongolia.

Under a deal announced on Wednesday, APB is buying a majority stake in vodka
maker Mongolian Beverages for S$27.7 million.

Under the deal, Mongolian Beverages will engage in the production, marketing,
sales and distribution of vodka and spirits in Mongolia.

It will offer brands such as Grandkhaan, Chinggis, Khubilai, Xappa and Eruu
which are familiar vodka names among consumers in the market.

The deal is expected to add a new income stream for the company.

Roland Pirmez, chief executive officer of APB, said: “Our maiden
investment in the spirits sector in Mongolia will enhance APB”s growth in the
Mongolian alcohol market. Though Mongolia is predominantly a vodka market, beer
is increasingly gaining popularity.

“Our diversification into vodka will strategically enable us to build a
multi-beverage portfolio to ensure our relevance, sharpen our competitive edge
and drive greater top line gain in Mongolia.”

Upon completion of the deal, both the beer and vodka businesses will share the
same sales and distribution infrastructure.

The deal is also expected to open up APB”s products to new markets in Mongolia through
previously-untapped distribution channels.

It will also allow APB to take Mongolia”s home-grown vodka brands such as
Chinggis to the world via its export network.

APB started its beer brewery operation in Mongolia in 2007.

Last year, its business in Mongolia recorded a volume increase of 15 per cent
year-on-year.

Source: CNA