ARMENIA: SALES OF YEREVAN COGNAC PLANT INCREASE

Akcyz
December 29, 2008 Monday

Mr. Cedrik Retailleau, CEO of the Yerevan-based cognac plant, has
announced that the financial crisis will slightly affect the expensive
cognac market. The rise of the plant’s sales may slow down in 2008,
but it will not affect the company’s market share. According to
Mr. Retailleau, the increase will reach about 24% in 2008, against
25% in 2008. Russia is the main market of the enterprise. Sales in
Armenia rise as well. At present, they total 3.5mn absolute litres per
year. The company has good opportunities to rise in the niche of lux
products (cognac aged 20) and intends to develop this line. Novelties
are elaborated on the basis of very old alcohol (over 20 years).

France’s Pernod Ricard that has been owning the enterprise during
ten years, has invested around EUR 50mn (US$ 79.12mn) in its
development. It stimulates Armenian grape producers to grow kinds of
grape meant for cognac. Yerevan cognac plant has agreements about
supply with over 5,000 households. Investments in purchase of over
31,000 tons of grape will total EUR 10mn in 2008.