Ararat disappears from sight – Kommersant

The Yerevan Brandy Factory, which produces Ararat brandy, may stop deliveries to Russia, Armenian Minister of Economy Vahan Kerobyan warned. This may be due to the statement of the owner of the enterprise Pernod Ricard about the reduction of work in the Russian Federation. Although one of the distributors of the Luding Group brand did not receive official notices about the termination of supplies. Ararat is one of the three most popular Armenian cognacs in Russia, but it occupies a small share in the total sales of the drink, and given the accumulated stocks, the brand should not disappear from the shelves for at least the next six months.

The Yerevan Brandy Factory, which produces Ararat cognac, may stop exporting to Russia, Armenian Economy Minister Vahan Kerobyan said Thursday at a meeting of the commission of the country’s parliament. The official’s words lead “RIA News” And Interfax.

Last week, Pernod Ricard, owner of the Yerevan Brandy Company, announced that it had stopped exporting all international brands to Russia at the end of April 2023 and would leave the distribution of the portfolio on the Russian market within a few months. Pernod Ricard’s portfolio also includes Chivas Regal, Jameson, Ballantine`s, Beefeater, Absolut, Havana Club, Olmeca and others. A Pernod Ricard representative in Russia did not comment on Thursday.

According to Interfax, more than 80% of the Yerevan Brandy Factory’s exports come from Russia. As Mr. Kerobyan noted, stopping the export of Ararat cognac to the Russian Federation will have a negative impact on the purchase of grapes from local farmers. According to WineRetail, almost 10,000 hectares of vineyards fall on cognac grape varieties in Armenia, which is the majority of those available in the republic. The Armenian media previously called the Yerevan Brandy Factory the largest buyer of grapes in the country.

WineRetail believes that in the next six months, Ararat cognac will not disappear from the Russian market, given the volume of accumulated stocks.

In addition, analysts believe that Pernod Ricard may sell the Yerevan Brandy Factory, which will remove the issue of supply restrictions. Kommersant’s source among alcohol distributors generally doubts that Ararat’s exports to Russia will stop.

In September 2021, it became known that the Luding Group became the exclusive distributor of Ararat cognac in a number of channels in Russia. The company, in particular, agreed with Pernod Ricard on the distribution of Ararat in regional and local networks, as well as on deliveries to wholesale, corporate and private buyers. Ernest Khachaturian, executive director of Luding Group, told Kommersant that the group remains a distributor of Pernod Ricard, the contract is valid and official information regarding this statement (on the termination of exports of Ararat to the Russian Federation.— “b”) were not received from Pernod Ricard in Luding.

Anatoly Kostyrev