Asia Pacific Brewing (APB) is all set to purchase majority stake in Mongolian Beverages from Grandkhaan Holdings for $21.9m.

APB had forayed into Mangolia in 2007 with an agreement with local partner the MCS Group for a new brewery.

Under the partnership with APB, Mongolian Beverages will produce, market, sell and distribute vodka brands such as Grandkhaan, Chinggis, Khubilai, Xappa and Eruu in Mongolia.

With the help of Mongolian Beverages, APB will be able to meet the market demands for both beer and vodka.

Upon completion of the deal, APB will share same sales and distribution infrastructure for both beer and vodka businesses to efficiently deliver its products to different outlets and markets.

By using the APB export network that runs across 60 countries and Grandkhaan Holdings’ expertise in vodka production, Mongolian Beverages can expand its vodka brands such as Chinggis to different countries around the world.

APB CEO Roland Pirmez said they have a positive and constructive working relationship with their partner in Mongolia.

"We share the same business focus – an absolute commitment to quality, a desire to exceed consumer expectations and strong relationship with our trade partners," Pirmez added.

"Growing our partnership with them is exciting as is the potential within the Mongolian market.

"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."