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OST-ALCO BRANDY COMPANY TO BOTTLE SHUSTOV COGNAC IN ARMENIA
ARKA
June 5, 2008
YEREVAN, June 5. /ARKA/. The Russian Ost-Alco Company plans to bottle
its Shustov cognac in Armenia and France, the RBK daily reports.
The company intends to bottle the cognac in its home, Armenia. At
present, Ost-Alco is negotiating both with the Yerevan Ararat
Brandy-Wine-Vodka Factory and the French Meukow to bottle the cognac
in their facilities.
The Russian company believes a relevant agreement with the French
company will contribute to fivefold increase of Shustov sales.
The maximal retail price of the cognac will rise from 600 rubles
to 1,500 rubles for 0.5l. The retail price of the Russian Shustov
is expected to reach some 700 rubles for 0.5l, whereas Armenian
and Russian bottles will cost some 1,000 rubles and 1,500 rubles
respectively. The minimal price of Shustov is 600 rubles now.
The cognac will change both its shape and taste soon, said Viktor
Turshatov, public relations head of Ost-Alco.
The Russian company is negotiating with Armenian Ararat brandy producer
(under the Noy brand) and the French Meukow (Compagnie de Guyenne
Group member).
"We plan to keep bottling Shustov in the Chernogolovka enterprise and
produce premium Shustov cognacs in Armenia and France," Turshatov said.
Nikolai Shustov first bottled this cognac in Armenia at the turn of
the 19th century.
A representative of the Armenian brandy factory confirmed they are
negotiating with the Russian Ost-Alco, though he made no comments on
their possible outturn.
Ost-Alco plans to end negotiations this summer and launch bottling
of the Armenian and French cognacs in early 2009.
The company plans to invest some $2mln for restyling and marketing
promotion.
Ost-Alco intends to increase the monthly output from 10,000 deciliters
to 50,000 deciliters.
According to the Business Analytics, the share of the Shustov brand
in Russian brandy market was 0.5%. Among top leaders are the Moscow
(Moskovsky) Brandy Factory (15.8%), Kinovsky (4.8%) and Stariy
Kenigsberg (Old Conigsberg) or Alyans-1982 (4.8%).
Despite its Armenian origin, Shustov is considered a Russian cognac.
Therefore, Ost-Alco needs to make great efforts to remind customers
it has ties with Armenia, said General Executive of the Moscow Wine
Factory Yevgeny Kalabin.
In his turn, Director of the Tsifra (Digits) Branch Information
Agency Vadim Drobiz disapproved of the idea of bottling Shustov in
three countries.
"It will water down the brand in consumers' consciousness," he
said. "They could, for instance, produce the cognac in Armenia and
sell it at the price it is sold in Russia." Drobiz believes 1,000
rubles is too much for a bottle of Armenian cognac.
The Russian Ost Group involves 30 enterprises. Its principal
shareholders are Larisa Pekareva (70%), spouse of the Russian Duma
Member Vladimir Pekarev who is the founder of the company, Yelena
Philopova (15%), Yelena Sorokina, Tatyana Pekareva and Vladimir
Polikarpov (5% each). The company's famous brands are Bogorodskaya,
Stolnaya, Shustov (hard drinks), Vintage and Jet (low-alcohol
cocktails), Napitki iz Chernogolovki (Drinks from Chernogolovka),
Chernogolovskaya and Sobornaya (non-alcohol drinks). Ost Group's
output was $3.6mln deciliters.
ARKA
June 5, 2008
YEREVAN, June 5. /ARKA/. The Russian Ost-Alco Company plans to bottle
its Shustov cognac in Armenia and France, the RBK daily reports.
The company intends to bottle the cognac in its home, Armenia. At
present, Ost-Alco is negotiating both with the Yerevan Ararat
Brandy-Wine-Vodka Factory and the French Meukow to bottle the cognac
in their facilities.
The Russian company believes a relevant agreement with the French
company will contribute to fivefold increase of Shustov sales.
The maximal retail price of the cognac will rise from 600 rubles
to 1,500 rubles for 0.5l. The retail price of the Russian Shustov
is expected to reach some 700 rubles for 0.5l, whereas Armenian
and Russian bottles will cost some 1,000 rubles and 1,500 rubles
respectively. The minimal price of Shustov is 600 rubles now.
The cognac will change both its shape and taste soon, said Viktor
Turshatov, public relations head of Ost-Alco.
The Russian company is negotiating with Armenian Ararat brandy producer
(under the Noy brand) and the French Meukow (Compagnie de Guyenne
Group member).
"We plan to keep bottling Shustov in the Chernogolovka enterprise and
produce premium Shustov cognacs in Armenia and France," Turshatov said.
Nikolai Shustov first bottled this cognac in Armenia at the turn of
the 19th century.
A representative of the Armenian brandy factory confirmed they are
negotiating with the Russian Ost-Alco, though he made no comments on
their possible outturn.
Ost-Alco plans to end negotiations this summer and launch bottling
of the Armenian and French cognacs in early 2009.
The company plans to invest some $2mln for restyling and marketing
promotion.
Ost-Alco intends to increase the monthly output from 10,000 deciliters
to 50,000 deciliters.
According to the Business Analytics, the share of the Shustov brand
in Russian brandy market was 0.5%. Among top leaders are the Moscow
(Moskovsky) Brandy Factory (15.8%), Kinovsky (4.8%) and Stariy
Kenigsberg (Old Conigsberg) or Alyans-1982 (4.8%).
Despite its Armenian origin, Shustov is considered a Russian cognac.
Therefore, Ost-Alco needs to make great efforts to remind customers
it has ties with Armenia, said General Executive of the Moscow Wine
Factory Yevgeny Kalabin.
In his turn, Director of the Tsifra (Digits) Branch Information
Agency Vadim Drobiz disapproved of the idea of bottling Shustov in
three countries.
"It will water down the brand in consumers' consciousness," he
said. "They could, for instance, produce the cognac in Armenia and
sell it at the price it is sold in Russia." Drobiz believes 1,000
rubles is too much for a bottle of Armenian cognac.
The Russian Ost Group involves 30 enterprises. Its principal
shareholders are Larisa Pekareva (70%), spouse of the Russian Duma
Member Vladimir Pekarev who is the founder of the company, Yelena
Philopova (15%), Yelena Sorokina, Tatyana Pekareva and Vladimir
Polikarpov (5% each). The company's famous brands are Bogorodskaya,
Stolnaya, Shustov (hard drinks), Vintage and Jet (low-alcohol
cocktails), Napitki iz Chernogolovki (Drinks from Chernogolovka),
Chernogolovskaya and Sobornaya (non-alcohol drinks). Ost Group's
output was $3.6mln deciliters.