THE STORY OF A DROP OF BRANDY
James Hakobyan
Lragir.am
10 Aug 06
The Russian regional department of control over consumption informed
August 9 about suspending the license of Pernod Ricard Russe for
wholesale trade. The reason is the poor sanitary conditions. Pernod
Ricard Russe is the daughter company of Yerevan Brandy Factory,
the owner of Yerevan Brandy Factory. Pernod Ricard’s daughter is the
exclusive distributor of the production of Yerevan Brandy Factory in
Russia. Hence, the sale of the brandy of YBF is currently prohibited
in Russia.
In other words, the production of Yerevan Brandy Factory has the
same fate as the Georgian and Moldavian wines. But if in the case of
Georgia and Moldova the sale of the entire production was prohibited,
in the case of the Armenian brandy the sale of the production of one
particular factory is concerned. It is possible, however, that Russia
simply began with the production of YBF; in other words, Russia spares
its strategic partner and prohibits the import of the Armenian brandy
to Russia gradually. After Verin Lars, one may expect "an electric
chair" from the Kremlin, and we must be grateful that it increases the
voltage gradually, although it is much worse, for thereby they execute
slowly. In other words, Russia treats its strategic brother worse
than Georgia and Moldova, of course, if it has made such a decision.
Another variant is possible as well, and in this case we deal with
the continuation or repetition of the story. The point is that after
the privatization of Yerevan Brandy Factory, when it was bought by
the French, the factory began having problems with the sale of brandy
in Russia. Namely, the Moscow-based factories owned by high-ranking
Armenian public officials hampered the sale of the production of YBF,
which operated when YBF was not privatized yet, and produced brandy
with the trademark of YBF. They produced Armenian brandy with the
trademark of YBF and sold it on the Russian market in more favorable
conditions, which hindered the sales of YBF. After a lasting debate
with the government, the owner of YBF succeeded in having these
factories closed down. However, problems with the Russian market did
not end because they started to produce Armenian brandy in Russia
illegally. Besides, the company Great Ararat was opened in Armenia.
YBF began struggle against this company because it used the trademark
Ararat, which had become the property of YBF after the privatization
of the company. Again after lasting struggle Great Ararat became
Great Valley whose owner Member of Parliament Tigran Arzakantsyan was
recently involved in a scandalous incident in Moscow. The incident
was not related to the market of brandy but it is not known what it
is related to because there were only rumors, which did not become
real facts, for the member of parliament has not given any comments
and avoids returning home.
Later many other companies producing brandy appeared, and their owners,
formally or informally, are also high-ranking Armenian officials. And
the main market of the Armenian brandy is Russia. And it is not
accidental that the Armenian companies fight against one another rather
than with other actors on the Russian market. It also stems from the
quality of production of the Armenian brandy. Since the production
is low quality, it is natural that struggle against the other actors
on the Russian market becomes pointless, therefore it is necessary to
improve the quality of production, which requires additional expenses.
Whereas it is becoming rather difficult to make these expenses because
there are clear-cut quotas on business in Armenia.
Consequently, the companies are not interested in making additional
expenses. In this situation, it is more expedient to struggle
against one another for the Russian market, for it is useless to make
additional expenses. The struggle for the Russian market is from the
sphere of arrangements, and the one who arranges more and on time,
makes the most profit.