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.