PERNOD RICARD SATISFIED WITH ITS BUSINESS IN ARMENIA

YEREVAN, JUNE 30. ARMINFO. Pernod Ricard company is engaged in
successful activity in Armenia. We are satisfied with the results of
the work and prod of representing such a high-quality Armenian brand
abroad. Head of Pernod Ricard – Europe company Tierry Bion (name as
given) has made this statement at a meeting with Armenian President
Robert Kocharyan today.

The press-service of the Armenian President informs ARMINFO that
the guest informed the president that after privatization of Yerevan
Brandy Factory, upgrading the production quality became company’s major
task. He says that as compared with 1990. In 2005 sales volumes and
export grew ten times. Over 90% of the production is exported and the
main markets are Russia and the Ukraine. Head of Pernod Ricard Europe
says that simultaneously with the growth of brandy production, grapes
purchase volume grow. Last year the plant purchased raw materials
for 3 bln AMD, this year this indicator is increased 20%. The company
intends to participate in plantation of new vineyards.

In his turn, Robert Kocharyan says that Pernod Ricard is a serious
partner of Armenia and no one doubts today that the deal on
privatization of Yerevan Brandy Factory was a success.

Brandy production in Armenia in 2004 totaled 7.095 mln liters and
decreased 1.7% (7.7220 mln liters in 2003). Within five years, the
production of brandy in Armenia grew over 13 times. In 2005 YBC
intends to purchase 25,000 tons of grapes as against last year’s
20,000 tons. For this purpose, the company intends to invest some
$8 mln as against $5 mln last year. YBC has contract on purchase of
grapes with over 4,000 farmers. Grapes grown in Ararat Valley are
purchased mainly. But to increase purchase volumes, the company has
become purchasing it also in the North of Armenia (Tavish region)
and NKR during the last years. The sale volume of YBC in 2004 totaled
some 4 mln liters. In 2005 the company plans to increase the sale
volume by 8.9%. YBC was purchased in May 1999 for $30 mln by a French
group companies Pernod Ricard. The YBC trademarks are registered in
48 countries with the production being sold in 25 countries.