YEREVAN BRANDY FACTORY INCREASED SALES VOLUME BY 10% IN 2005

Yerevan, May 23. ArmInfo. In 2005 the Yerevan Brandy Factory increased
the volume of sales by 10% – up to 4,4 million liters against 4 million
in 2004, told the ArmInfo correspondent Herve Caroff, director general
of the factory.

According to Mr. Caroff, the company is satisfied with such volume as
much time in 2005 was spent on installation of new equipment at the
factory. That is why new sorts of cognac were issued to the market
only in March 2005. He said that this quantity is optimal taking into
consideration the store of spirits which will remain unchanged for the
next few years. The director general said that Pernod Ricard company,
owner of the factory, will make investments in Russia and Ukraine so
as the consumer distinguishes the production of the Yerevan Brandy
Factory from that of others. The company is not palnning yet to
open new branches, but intends to increase the sales in Kazakhstan,
where recently Pernod Ricard representation was opened. In this
country most demanded are super premium quality cognacs – ‘Nairi’
and Festive”. Contacts with Kyrgyzstan and Turkmenistan are also
being enhanced.

Mr. Caroff informed that 90% of production is sold in Russia, Ukraine,
Belarus and Kazkhstan (75% in Russia only). The factory supplies
cognac also to the markets of Japan, Germany, Czech Republic,
Israel and Greece. This year export to the USA and Moldova will
be started. Opportunities of export to Britain and China are being
studied. Next year Pernod Ricard is also recommencing the production
of ‘Dvin’ cognac (10 years ripening, 50% alcohol). This specific kind
of cognac will be produced only at Yerevan Brandy Factory.

Commenting on the temporary suspension of export to Russia because of
change of documentary stamps standard, the factory’s director general
said that the company did not suffer much loss. An arrangement with
the Russian partner was made and shortage of Ararat cognac did not
occur in Russia.

Herve Caroff expressed satisfaction with the grapes harvest of 2005.

24 thousand tons of fresh grapes was stored and a little quantity
of wine materials, which were distilled at the plants in Armavir
and Aygevan. 28 thousand tons of grapes and 3 thousand tons of wine
materials are planned for 2006. The Yerevan Brandy Factory purchases
grapes from 4500 Armenian farmers as well as wine materials from
Armenian wine factories. Each year Pernod Ricard invests $7-8 million
in the Yerevan Brandy Factory, of which $4-5 million is spent on the
extension and modernization of the enterprise. This year investments
will be made in Aygevan and Armavir distilling plants.

From: Emil Lazarian | Ararat NewsPress