COGNAC ARMENIAN BRAND ONLY IN RUSSIA – EXPERTS SUGGEST ALTERNAIVES

11:31 * 18.02.15

Cognac is recognized as an Armenian brand only in Russia, as all
other countries use the term brandy to name the Armenian product,
says the president of the Armenian Association of Winemakers.

Speaking to Tert.am, Avag Harutyunyan explained that the term
“brandy”, as a beverage name, is a class lower than cognac, which is
internationally known to be typically French brand. “Though on the
Russian market, the Armenian cognac is perceived as an Armenian brand,
that market is little by little growing smaller in size, losing its
attractiveness,” he said.

Harutyunyan noted that despite its high quality and competitiveness,
the Armenian product falls short of meeting the criteria of what is
termed as cognac. He said that while the French cognac represents a
mix of different varieties of grape (that also influences the aroma),
the Armenian brandy is made of distilled spring water. “There are
specificities that ensure the Armenian brandy’s higher quality,
and its place on market. Armenian brandy is sun-smelling; it has a
richer aroma with a chocolate-vanilla flavor, but the whole problem
has to do with the name,” he added.

Harutyunyan noted that Armenia’s EU Association Agreement contained a
provision allowing the use of “Armenian cognac” for maximum ten years.

He added that the question would be problematic again in case Armenia
had chosen to sign the association deal with Europe. “It is a great
pity for us that we didn’t manage to replace the word in the course
of 70 years [of the Soviet rule],” he added.

As for the beverage’s marketability in the Eurasian Economic Union
(EEU), the expert said he knows that cognac is still acceptable in
that trade zone, but he didn’t rule out the possibility of the term’s
future usage also in the EU.

Harutyunyan said he finds cognac to be more a typical Armenian
phenomenon rather than an international cultural value.

“With its sale volumes, it is the world’s twentieth [most popular]
drink. It has a potential, so if we find the right name, it will gain
advantage, having its worthy place in the ranks of gin, rum, whiskey
and cognac,” he said, noting that 90% of the Armenian beverage is
consumed in the post-Soviet area.

Harutyunyan said the right word is difficult to find especially because
the names traditionally perceived as a national brands (Araratm Masis,
Sevan) were long ago handed over to the private sector’s monopoly,
becoming the property of individual entrepreneurs.

“It may be a term characterizing the territory and nation, which
specialists are not able to find,” he said, proposing even a contest
for selecting an appropriate brand.

Avetik Galstyan, a deputy director at the Proshyan Brandy Factory,
also agrees that a possible ban on “cognac” may cause problems in the
industry. According to him, “brandy”, as a term, can potentially work
on the market.

“It is due to Russia now that we are able make exports also to the EEU
countries, labeling our product as ‘cognac’,” he said, adding that
“Armenian brandy” comes to replace the term whenever the drink is
exported to the EU.

Gasparyan said he knows that the Armenian cognac or brandy is the
preferred product on the EEU market ,which is very well familiar with
the drink but noted in the meantime that it is also exported to the
Baltic republics, as well as Poland and Bulgaria. “There are more
opportunities in the countries of Eastern Europe,” he added.

Admitting that the Armenian brandy is widely popular in the Diaspora,
Gasparyan said he doesn’t think that the factor alone is enough for
ensuring the product’s marketability.

“There are price-related issues, so we must try to sell cheaper
to attract the European consumer into preferring the Armenian
[product],” he said, noting that equal prices will still keep the
European consumer’s interest high in French cognac.