YEREVAN BRANDY COMPANY’S PROFITS FALL 28%

ARKA
Feb 19, 2010

YEREVAN, February 19, /ARKA/. The Yerevan Brandy Company’s profits
last year fell by 28%, Ara Grigorian, the executive director of the
French-owned winery told ARKA. He blamed the decline on global economic
crisis adding that the company’s sales fell by 36%.He said last year
was the ‘most difficult’ since the company was privatized by Pernod
Ricard, one of the leading world manufacturers of alcoholic drinks,
with production of brandy falling from 4.3 million liters in 2008 to
2.8 million liters.

"The main problem is that the consequences of the crisis are still
felt in Russia, Ukraine and some other former Soviet republics,
which are our major sale markets,’ he said.

However, according to Ara Grigorian, apart from the fallout the
crisis has had also some positive effect-despite the falling sales,
the company has succeeded in ‘strengthening’ the positions of Ararat
brandy.

‘Crisis, as an economic phenomenon, can not be eliminated, but we
can surmount it and move quickly to recovery,’ he said.

Last year production of brandy in Armenia slashed by 40%. It was due to
crisis and lowering solvency, Ara Grigorian said, adding that they plan
to produce this year 4.3 million liters of brandy, as much as in 2008.

The Yerevan Brandy Company was founded in 1887. In 1998 it was
privatized by Pernod Ricard at $390 million.