ARMENIAN HONEY-CAKE MAKER PLANS HEFTY INVESTMENT ON HIGH DEMAND

Czech News Agency
September 2, 2005

FRYDEK-MISTEK, North Moravia, Sept 2 (CTK) – Miko International,
an Armenian family company producing honey cakes in North Moravia,
said today it plans multi-million investments in production and
hirings owing to high demand.

Gevorg Avetisyan, who founded the company three years ago, told CTK
today the company would start three-shift operation next week.

Miko, employing 64 people formerly registered at the Frydek- Mistek
employment office, is looking for a bigger production facility now.

Avetisyan said the company could not satisfy demand for cakes made
according to an old Armenian recipe.

“Interest is incredible, we already sell to seven countries in Europe,”
he said. Besides the Czech Republic, Miko sells cakes to Austria,
Britain, Germany, Hungary, Italy and Switzerland.

Sales director David Grochol said markets overseas had also expressed
interest.

In the first six months of this year, honey-cake sales brought
in Kc11.4 million, beating the amount for full-year 2004 by more
than half.

Gevorg Avetisyan’s sister Hasmik, the owner of the company, started
to make the so-called Marlenka cakes.

The company moved from a small leased facility to a former kitchen of
an old people’s home, which it bought from the town and modernised.
But even its 1,000 square metres are not enough.

“After two months, we found out we need about 3,000 square metres.
Either we will build something new, or we will rebuild an existing
building,” said Avetisyan.

Avetisyan is a university graduate who majored in architecture. His
sister studied philology.

Avetisyan said he was planning to buy a production line and to
abandon manual production. The investment will reach about Kc50
million in total.

Miko has obtained a trademark and three certificates from a hygiene
lab, as well as a certificate proving the product complies with EU
standards. But it has also registered the first attempt at a forged
honey cake.

“About two months ago, a product called Marenka, made by a North
Moravian company, appeared on the market. Our clients could easily make
a mistake, so we will try to reach an agreement with the producer,”
said Grochol.

“If it does not help, we will defend ourselves using all means
available,” he added.

Pavel Osina from the Frydek-Mistek town hall said the town was trying
to help the Armenian business.

“We have sold them one building for quite a good price. The industrial
parks will probably be full, but we could offer them some place in
former army barracks,” he added.

Jarmila Krpcova from the Frydek-Mistek employment office said she
would welcome more such companies.

“They hire not only trained confectioners. We have cooks and women
without education who can do this job,” she told CTK. The unemployment
rate in Frydek-Mistek reaches some 13 percent against the national
average of 8.8 percent.