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WE ARE LOSING `ARMENIAN BRANDY'
THE SPLENDOUR AND MISERY OF THE ARMENIAN BRANDY
The ex-prime minister of Armenia Hrant Bagratyan held an exclusive
interview with Radio Liberty, lragir.am and hetq.am on the past and
present of the Armenian brandy.
In 2004-2008, according to the RA NSS, the volume of production of
brandy has more than doubled, from 7.1 million liters to 15.9 million
liters. Over this period the volume of production of YBC dropped from
4.5 million liters to 3.5 million liters. This means YBC is not a
leader in Armenia. Noy, Proshyan Brandy Company, MAP keep up with it
or exceed it by the levels of production and sales.
When the government of Armenia sold YBC to the French in May 1998, the
levels of production and sales fell twice. At that time the government
of Armenia thought the French people do not know how to operate in the
post-Soviet markets (these are Robert Kocharyan's words). In reality,
however, as long as the factory was state-owned, the government
officials were interested in its operation, and used certain
mechanisms of pressure and restraint against counterfeiters, forgers.
However, after selling it to the French the same officials did the
opposite, factories counterfeited the brands which the French sold.
The situation was unbearable especially in the main markets of our
brandy, in Russia, in Kazakhstan, in Ukraine, etc. People were
bottling `Akhtamar', `Nairi' and `Dvin' everywhere though these brands
had been bought by the French. YBC sued them but it was not effective
(it took time, many factories formerly owned by Ararat Trust,
especially those outside Armenia, had the right to bottle brandy).
There seemed to be no way out of this situation. Not only YBC. The
fate of the other factories in Armenia was vague.
At that time we had a great idea. To replace the Russian standard
Ð`Ð?СТ-13741 with the Armenian standards ÕÕ?Õ? 150, ÕÕ?Õ? 151, ÕÕ?Õ? 181. It
was a risky solution. Everyone thought we would lose the existing
markets if the Armenian letters ÕÕ?Õ? appeared in the place of the
Russian Ð`Ð?СТ. Thanks God, the French not only agreed but also
assisted. YBC continued to produce brandy in the old bottles, at the
same time, the RA Committee of Standards had the abovementioned
standards of the `Armenian brandy' recognized in the CIS states. It
was the same standard as the Soviet standard but claimed that the
brandy is Armenian if it is produced from Armenian grapes and is
bottled in Armenia. The effect we expected was achieved. All the
`Armenian' brandy bottled in Russia or Kazakhstan became `out of law'.
In other words, now there is no need to claim in court that the brand
'Nairi' is owned by YBC and no Kazakh, Ukrainian, Bulgarian or Russian
company can bottle Nairi. Now the issue was put the following way: the
Armenian brandy cannot be bottled in Russia, Kazakhstan, or Ukraine.
Hence, counterfeiting outside Armenia was exterminated.
By the new standard we got the brand of `Armenian brandy'. It was
stated in the standard that for the production of this brandy the
white Armenian sorts of grapes must be used, including Voskehat, Garan
Dmak, Rkatsitelli. These sorts are thousands of years old.
In 2000-2008 the levels of production and sales of the Armenian brandy
grew 12 times. A brandy boom started in the country. However, in order
to maintain the rates a number of steps were taken. In 2001 Bagratyan
met with Robert Kocharyan in 2001 and stated that the government must
control implementation of standards of the Armenian brandy. Kocharyan
who was the godfather of sale of YBC to Pernod Ricard did not do
anything. As a result some companies started importing brandy spirit
thereby violating the standards of the Armenian brandy. They bought
2-3 tons of grapes and announced about 20 thousand tons although in
fact they imported brandy spirit. A hectoliter of imported spirit cost
50 euros while 350-400 euros. Besides, announcing about purchase of a
great amount of grapes, the companies artificially increased costs and
in fact fed shadow economy.
In 2006-2009 the NSS reported production of 185-210 thousand tons of
grapes. In reality, 100-105 thousand tons was produced. Agriculture
reported 95-100 thousand tons, while the real number is 45-55 thousand
tons. Through these manipulations the GDP was exaggerated by 0.4-0.5
percent. YBC was the only company which reported reliable data on the
yield of grapes, took satellite images of vineyards.
Bagratyan thinks the decision of the government to rebrand Armenian
brandy into arbun is in the interests of outside actors. In the
meantime, brandy has been produced in Armenia since 1887, and nobody
has the right to take away the brand from us. The Armenian government
should have insisted that we produce noble `Armenian brandy' and
follow the implementation of standards. While the brand `arbun' is a
deadly blow for the Armenian brandy.
Now the president of Pernod Ricard does not think it is necessary to
struggle for the brand of `Armenian brandy'. As a result, YBC is in a
deplorable state. And if the situation does not improve, Pernod Ricard
will have to sell the factory.
18:10:43 - 25/06/2010
http://lragir.am/engsrc/economy-lrahos18356.html
From: A. Papazian
WE ARE LOSING `ARMENIAN BRANDY'
THE SPLENDOUR AND MISERY OF THE ARMENIAN BRANDY
The ex-prime minister of Armenia Hrant Bagratyan held an exclusive
interview with Radio Liberty, lragir.am and hetq.am on the past and
present of the Armenian brandy.
In 2004-2008, according to the RA NSS, the volume of production of
brandy has more than doubled, from 7.1 million liters to 15.9 million
liters. Over this period the volume of production of YBC dropped from
4.5 million liters to 3.5 million liters. This means YBC is not a
leader in Armenia. Noy, Proshyan Brandy Company, MAP keep up with it
or exceed it by the levels of production and sales.
When the government of Armenia sold YBC to the French in May 1998, the
levels of production and sales fell twice. At that time the government
of Armenia thought the French people do not know how to operate in the
post-Soviet markets (these are Robert Kocharyan's words). In reality,
however, as long as the factory was state-owned, the government
officials were interested in its operation, and used certain
mechanisms of pressure and restraint against counterfeiters, forgers.
However, after selling it to the French the same officials did the
opposite, factories counterfeited the brands which the French sold.
The situation was unbearable especially in the main markets of our
brandy, in Russia, in Kazakhstan, in Ukraine, etc. People were
bottling `Akhtamar', `Nairi' and `Dvin' everywhere though these brands
had been bought by the French. YBC sued them but it was not effective
(it took time, many factories formerly owned by Ararat Trust,
especially those outside Armenia, had the right to bottle brandy).
There seemed to be no way out of this situation. Not only YBC. The
fate of the other factories in Armenia was vague.
At that time we had a great idea. To replace the Russian standard
Ð`Ð?СТ-13741 with the Armenian standards ÕÕ?Õ? 150, ÕÕ?Õ? 151, ÕÕ?Õ? 181. It
was a risky solution. Everyone thought we would lose the existing
markets if the Armenian letters ÕÕ?Õ? appeared in the place of the
Russian Ð`Ð?СТ. Thanks God, the French not only agreed but also
assisted. YBC continued to produce brandy in the old bottles, at the
same time, the RA Committee of Standards had the abovementioned
standards of the `Armenian brandy' recognized in the CIS states. It
was the same standard as the Soviet standard but claimed that the
brandy is Armenian if it is produced from Armenian grapes and is
bottled in Armenia. The effect we expected was achieved. All the
`Armenian' brandy bottled in Russia or Kazakhstan became `out of law'.
In other words, now there is no need to claim in court that the brand
'Nairi' is owned by YBC and no Kazakh, Ukrainian, Bulgarian or Russian
company can bottle Nairi. Now the issue was put the following way: the
Armenian brandy cannot be bottled in Russia, Kazakhstan, or Ukraine.
Hence, counterfeiting outside Armenia was exterminated.
By the new standard we got the brand of `Armenian brandy'. It was
stated in the standard that for the production of this brandy the
white Armenian sorts of grapes must be used, including Voskehat, Garan
Dmak, Rkatsitelli. These sorts are thousands of years old.
In 2000-2008 the levels of production and sales of the Armenian brandy
grew 12 times. A brandy boom started in the country. However, in order
to maintain the rates a number of steps were taken. In 2001 Bagratyan
met with Robert Kocharyan in 2001 and stated that the government must
control implementation of standards of the Armenian brandy. Kocharyan
who was the godfather of sale of YBC to Pernod Ricard did not do
anything. As a result some companies started importing brandy spirit
thereby violating the standards of the Armenian brandy. They bought
2-3 tons of grapes and announced about 20 thousand tons although in
fact they imported brandy spirit. A hectoliter of imported spirit cost
50 euros while 350-400 euros. Besides, announcing about purchase of a
great amount of grapes, the companies artificially increased costs and
in fact fed shadow economy.
In 2006-2009 the NSS reported production of 185-210 thousand tons of
grapes. In reality, 100-105 thousand tons was produced. Agriculture
reported 95-100 thousand tons, while the real number is 45-55 thousand
tons. Through these manipulations the GDP was exaggerated by 0.4-0.5
percent. YBC was the only company which reported reliable data on the
yield of grapes, took satellite images of vineyards.
Bagratyan thinks the decision of the government to rebrand Armenian
brandy into arbun is in the interests of outside actors. In the
meantime, brandy has been produced in Armenia since 1887, and nobody
has the right to take away the brand from us. The Armenian government
should have insisted that we produce noble `Armenian brandy' and
follow the implementation of standards. While the brand `arbun' is a
deadly blow for the Armenian brandy.
Now the president of Pernod Ricard does not think it is necessary to
struggle for the brand of `Armenian brandy'. As a result, YBC is in a
deplorable state. And if the situation does not improve, Pernod Ricard
will have to sell the factory.
18:10:43 - 25/06/2010
http://lragir.am/engsrc/economy-lrahos18356.html
From: A. Papazian