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Higher gas prices to cause surge on brandy market - Armenian businessman
14:55 - 29.09.13
Several Armenian brandy manufacturers have raised their prices
pleading the recent hike in the natural gas tariffs, Alexan Petrosyan,
the owner of the MAP company and a Republican Party of Armenia (RPA)
parliamentary group member, told Tert.am.
`The Yerevan Brandy Company has raised its price 5% because of the gas
price rise. I think many other companies will follow suit because wine
production is gas-consuming. The grapes price has been raised as well.
Last year we purchased grapes at AMD 140, while this year's price is
AMD 145 per kilogram,' Petrosyan said.
Although the MAP company has not yet raised its prices, it will
certainly do so in the future. `The Yerevan Brandy Company is waiting
for a decision from France. But in our company it is our own decision.
However, raising the price is not an optimal decision now,' he said.
Armenia exports 90% of its cognac to Russia, and the country's
accession to the Customs Union will have a favorable impact on the
brandy market.
`People earning their bread will benefit from Armenia's accession to
the Customs Union because Russia has been our major market for the
past 100 years. And reorientation to European markets or to any other
markets is rather difficult for us,' he said.
As regards local market development by means of the European market,
Petrosyan said: `Do you think our products meet the Russian market's
demands? We should think of what we can export rather than of the
markets we can export to. At present, we have no products that would
enable us to struggle for markets. Our largest profits are from ore
and cognac. And we largely export our cognac to the Russian market. So
if Russia does not allow us to export our products to its market, we
need 100 years to enter European or any other markets,' Petrosyan
said.
A French company is the owner of the Yerevan Brandy Company, but 99%
of Armenian cognac is exported to Russia, and Armenia cannot export
even the rest 1% to France.
Entering new markets requires huge funds. `We cannot say `Wait for 50
years and let us see the developments on the European market.' Our
products are well known in Russia alone.'
Armenian News - Tert.am
14:55 - 29.09.13
Several Armenian brandy manufacturers have raised their prices
pleading the recent hike in the natural gas tariffs, Alexan Petrosyan,
the owner of the MAP company and a Republican Party of Armenia (RPA)
parliamentary group member, told Tert.am.
`The Yerevan Brandy Company has raised its price 5% because of the gas
price rise. I think many other companies will follow suit because wine
production is gas-consuming. The grapes price has been raised as well.
Last year we purchased grapes at AMD 140, while this year's price is
AMD 145 per kilogram,' Petrosyan said.
Although the MAP company has not yet raised its prices, it will
certainly do so in the future. `The Yerevan Brandy Company is waiting
for a decision from France. But in our company it is our own decision.
However, raising the price is not an optimal decision now,' he said.
Armenia exports 90% of its cognac to Russia, and the country's
accession to the Customs Union will have a favorable impact on the
brandy market.
`People earning their bread will benefit from Armenia's accession to
the Customs Union because Russia has been our major market for the
past 100 years. And reorientation to European markets or to any other
markets is rather difficult for us,' he said.
As regards local market development by means of the European market,
Petrosyan said: `Do you think our products meet the Russian market's
demands? We should think of what we can export rather than of the
markets we can export to. At present, we have no products that would
enable us to struggle for markets. Our largest profits are from ore
and cognac. And we largely export our cognac to the Russian market. So
if Russia does not allow us to export our products to its market, we
need 100 years to enter European or any other markets,' Petrosyan
said.
A French company is the owner of the Yerevan Brandy Company, but 99%
of Armenian cognac is exported to Russia, and Armenia cannot export
even the rest 1% to France.
Entering new markets requires huge funds. `We cannot say `Wait for 50
years and let us see the developments on the European market.' Our
products are well known in Russia alone.'
Armenian News - Tert.am