MONGOLIA: Asia Pacific Breweries goes “multi-beverage” with vodka JV
Click through to view Asia Pacific Breweries' Mongolian vodka portfolio
Asia Pacific Breweries is set to enter the Mongolian vodka market through a JV with Grandkhaan Holdings in the country.
The company, which is jointly-owned by Fraser & Neave and Heineken, announced earlier today (11 July) that it will take majority control of Grandkhaan's Mongolian Beverages Company at a cost of SGD27.7m (US$21.9m). Mongolian Beverages owns the Grandkhaan, Chinggis, Khubilai, Xappa and Eruu vodka brands in the country.
Asia Pacific Breweries will buy 27.5m of Mongolian Beverages' shares from Grandkhaan, with the Mongolian firm retaining the remaining 26.4m shares. APB will subsequently own a 51% holding in the vodka unit.
“Our maiden investment in the spirits sector in Mongolia will enhance APB’s growth in the Mongolian alcohol market,” said APB's CEO, Roland Pirmez.
“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.”
The firm said that it intends to take the vodka brands beyond their domestic market, into the 60 countries in which APB is already present. Meanwhile, the “enlarged distribution network” in Mongolia should benefit APB's beer brands, which “will gain access to previously untapped retail channels” beyond the capital, Ulaan Baatar.
APB made its entry into Mongolia in 2007, when it secured an agreement with local partner the MCS Group for a new brewery in the country. Its flagship Tiger brand had previously been imported.
Asia Pacific Breweries is Heineken’s joint venture in Singapore, with a variety of brands and consumer beverages that enjoy prominence in their local markets. The venture is crucial to the firm's grow...
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