The Russian Government’s decision setting the minimum price for brandy from January 1, 2011, will not affect Armenian brandy’s market position in Russia, Ara Grigoryan, Executive Director of the Yerevan Brandy Company, told a press conference.

He pointed out that the expected minimum price for a 0.5-liter bottle of brandy is 190 to 210 RUB, whereas the minimum retail price of a bottle of the brandy “Ararat” is 650 RUR.

As to the need for a minimum price of brandy in Armenia, Grigoryan said that the Armenian Parliament has discussed the issue. However, the minimum price has not yet been determined.

As regards the cheap brandies labeled “Armenian brandy” in Armenian shops (1,100-1,500 AMD a bottle), Grigoryan said that law-enforcement agencies should deal with the problem. “It is impossible to sell brandy at 1,100 AMD (U.S. $3) if we purchase grapes at 110-130 AMD (U.S. $0.3-035) per kilo and pay excise taxes,” he said.

Grigoryan also said that the release price one a bottle of three-star brandy at the Yerevan Brandy Company is 3,000 AMD (U.S. $8.2). The company does not have any income from the sale of this brandy.