In 2005 YBC Intends to Produce and Sell Some 4.5 Mln Liters Cognac

IN 2005 YEREVAN BRANDY COMPANY INTENDS TO PRODUCE AND SELL SOME 4.5
MLN LITERS OF COGNAC

YEREVAN, JULY 1. ARMINFO. In 2005 Yerevan Brandy Company intends to
produce and sell some 4.5 mln liters of cognac. YBC President and
Director General Herve Caroff informs ARMINFO.

He says 90% of the production the enterprise intends to export, first
of all, to Russia, Ukraine and Kazakhstan. Herve Caroff says that the
company can reach the level of 5 mln liters, but it does not intend to
“use” the reserves of brandy spirit so rapidly, regulating the
situation depending on the volume of grapes harvest. Everything will
depend on the forthcoming season of grapes purchases, he says, adding
that two years ago considerable areas vineyards were damaged by severe
winter frosts. During the last year a tendency towards increase in the
harvest of grapes was observed, hence the sales volume began
growing. Herve Caroff thinks it is early to speak of the purchase
price of the forthcoming harvest. The company intends to purchase not
large volume of raw materials in Nagorny Karabakh as well. On the
whole, Herve Caroff is satisfied with the work in Armenia wherein high
quality cognac is in demand. In this connection, the company intends
to constantly extend the production and sales volumes in the internal
market.

It should be noted that in 2004 the company purchased raw materials
for some $6 mln. In 2005 this indicator will be increased 20%. In 2005
YBC intends to purchase 25,000 tons of grapes as against 20,000 ton
last year. For this purpose, the company intends to spend $8 mln. YBC
has contracts with over 4,000 farmers in Armenia. The sales volumes of
YBC in 2004 was 4 mln liters. YBC was bought by Pernod Ricard French
group of companies in May 1999 fpr $30 mln. The trademarks of YBC are
registered in 48 countries world wide, with its production being sold
in 25 states.

From: Emil Lazarian | Ararat NewsPress