NEWS.am interviewed Ara Grigoryan, Managing Director of the Yerevan Brandy Company.

By Samvel Avagyan

Q.: Mr. Grigoryan, the Armenian Union of Brandy Producers has been founded. What are the aims of the Union?

Sectoral associations are widely practiced. It is gaining currency with respect to the products whose quality depends on particular producer regions. It is common knowledge that “Armenian cognac” is not a mere designation of a geographical producer region. Rather, this name suggests certain quality and taste. Besides “Ararat” or any other brand of Armenian brandy, we have the general category “Armenian cognac” in effect for all the producers. Several generations have contributed to the creation of this product category, and we must at least respect and preserve this heritage.

This general category results in community of interests, which must be preserved and represented. It also results in problems, which must be settled. Maintaining the quality of the product category designated as “Armenian cognac” meets common interests. Armenian laws set the standards, and only alcoholic beverages can be called “Armenian cognac”. Only the relevant government agencies are supervising the maintenance of standards. However, international experience shows enhanced efficiency when producers assume certain supervisory functions by forming associations. Moreover, the problems can be easier resolved, at both local and international levels, if one agency represents the interests of all producers. Numerous problems exist. This is a model applied by many similar organizations abroad, the Bureau National Interprofessionnel du Cognac (BNIC) being the best example. This association is in full control of all the brandy production stages – from vineyards to export. Both states and international organizations consider it an authority. Of course, we are too far from having such an authority in Armenia. However, the establishment of the Armenian Union of Brandy Producers (AUBP) was the first step. Time will show how well we can succeed.

Eleven organizations signed the AUBP-establishing agreement. The Union has not yet actually launched its activities, but a gratifying fact is that major producers joined the initiative. We also feel enthusiasm over the Government’s support.

Q.: How are the AUBP members going to cooperate in the domestic and foreign markets?

I think they will prefer one way of cooperation: protecting and representing common interests. It is desirable that the AUBP members become united in their aims ands show greater mutual confidence. As regards domestic and foreign markets, I think the current specific issues account for market sharing. Specifically, in the foreign market, protection of the original name “Armenian cognac” may be an example of cooperation. Producers will have to work hard, primarily in the legal aspect.

Q.: Russia has adopted laws setting the minimum brandy price. What will be the impact on the export of the “Ararat” brandy?

Yes, besides setting the minimum price for vodka, Russia applied this principle to brandy. Minimum brandy prices will take effect from next January. Under a relevant decision, the minimum price for 0.5 liter of brandy is 193 roubles. The current average price of a 0.5-liter bottle of three-start brandy “Ararat” is 500 roubles in Russia. This comparison shows that even legislative amendments are unlikely to cause any serious changes in the market. By the way, three-star brandy is the least aged brandy that can be sold in Armenia under law. May be, such steps will free the Russian market from the dubious alcoholic beverages products. I am sure it will not affect the sale of genuine Armenian brandies.

Q.։ How much do the sales increase during the New Year holidays?

I think that in December, especially during the New Year holidays, really soaring sales are registered. It is especially obvious in the case of alcoholic beverages. In the context of our annual sales, we can say we register 30% of our annual sales at the end of each year. If we compare this June-November with last January-November, we can clearly see a positive tendency. This reason is, of course, the post-crisis period – the previous years’ financial and economic problems are receding. I would also like to point out one more factor: this year we have modified the packing of the “Ararat” brandy and held a presentation in Yerevan this October. I think that marketing action promoted the sales over the recent months.

Also, let me, please, take this opportunity to wish your readers a happy New Year and Merry Christmas on behalf of the Yerevan Brandy Company.