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APU – From small state monopoly to global player

APU is an abbreviation of the Mongolian words Arkhi (vodka), Pivo (beer) and Undaa (drinks). Since it was first established in 1924 as a state-owned enterprise with 14 employees, APU has developed to become a leading producer in the beverage industry with more than 800 skilled employees. The broad product range extends from vodka (more than 40% market share) to beer, milk, juice and soft drinks and is distributed to more than 6,000 sales points by the country’s largest distribution network. Exports are also on the increase.

APU was converted to a joint stock company in 1992 with 49% of the shares being listed on the new Mongolian stock exchange. Privatisation was completed in 2001 when the existing management took control of the oldest company in Mongolia. 51% of the state-owned shares were publicly auctioned off. By 2004, the company had developed a state-of-the-art brewery and vodka distillery with an output of 6 to 8 million litres per year – the result of an investment programme totalling 45 million USD. The distillation process has been fully automated and computer-controlled since 2009 with a daily production of 15,000 litres. Further expansions took place in 2010 and the capacity currently totals 10 million litres. The technology and distillation equipment was supplied by leading companies in Germany, Italy and Austria.

APU is renowned for producing the purest vodka from the most refined wheat on the extensive steppe land areas of Mongolia. Spring water taken from a depth of 179 metres adds the finishing touch. Nine vodka brands are produced at the country’s biggest distillery, two of them specifically for the global market: Chinggis Khan and Soyombo. This year again, both won over the jury at the World Spirits Award: the Grain Vodka Chinggis Khan (Spirit of the Year 2014 & World Spirits Award 2014) received double gold and the Grain Vodka Soyombo was awarded gold.

Prevelon: Premium vodka by order of the Kremlin

Kremlin Premium Vodka was created as the official drink for all diplomatic receptions and banquets at the Kremlin and was intended as the hallmark of high-ranking events. The decision in favour of the most traditional Russian drink was unanimous. It was only produced on special order and in limited amounts. The first large batch of this ‘protocol’ vodka was ordered in February 1945 for the Yalta Conference. Kremlin Award Grand Premium came on the market in 2011 and is exported to 38 countries, and in many of them it holds the top position in the ultra-premium vodka category. Since 2016, the product range has included Kremlin Award Classic, which enjoys great popularity amongst all partners.

Two products have been added to the product range. Kremlin Award Organic is based on alcohol that is produced from the highest quality organic wheat, and on natural drinking water. The vodka passes through a multi-stage purification through pure birchwood charcoal. The alcohol for Kremlin Award Vintage is made from organic grains from the same harvest. The wheat grains are stored in a grain silo until they reach their physiological maturity in order to get a high-quality base product. The ‘luxury alcohol’ is then mixed with natural drinking water and, after purification, is granted a resting period. Production is limited to the year stated on the label.

At the World Spirits Award, there was gold for Kremlin Award Organic and Kremlin Award Vintage.