APB buys majority stake in Mongolian Beverages
SINGAPORE : 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.
- CNA/ms
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.
- CNA/ms
0 Response to "APB buys majority stake in Mongolian Beverages"
Post a Comment