Friday, February 27 2015 11:40

Brandy export from Armenia reduced to 18,096 mln liters in 2014 versus 18,305 mln liters in 2013, chairman of the Union of Armenian wine makers, Avag Harutyunyan, said at today's press-conference. 

He said that Russia is the main market outlet of the Armenian brandy and the bust is conditioned by the tendency of devaluation of the Russian rouble since November 2014 and the delay of payments for the production delivered by the Armenian exporters. 

He also added that the problems became even deeper in January 2015 and export may bust by 25%, as experts say. Harutyunyan thinks that negative tendencies will develop at the Russian alcohol market. Since the end of 2014 Russia has started importing and producing cheaper and lower quality alcohol production. And in the niche of the cheap alcohol drinks Armenia is not any more competitive  with Russian and Azerbaijani producers.  The expert said that today Armenian exporters are forced to export brandy by the prices lower than the prime cost, less than $2,5-3 for a bottle and go on developing unprofitable delivery so that not to lose the market. 

"The Russian consumers are not psychologically ready to pay more for the Armenian brandy. For this reason, the producers do not increase prices, Such a situation may cause financial difficulties for the Armenian brandy producers. And if the situation does not improve till June of the current year, the factories will not be able to provide the whole harvest of grape 2015. This will result in bust of alcohol production", - Harutyunyan said. He also added that the government of Armenia will be forced to deliver a state credit $100 to the brandy producers to organize grape procurement. 

The expert recalled that seven years ago Armenia used to export 95% of the produced brandy to Russia. However, after the economic crisis of 2008-2009, the delivery dropped and the share of the Russian market reduced to 90% in 2013 and to 85% in 2014. 
To note, brandy production in Armenia dropped by 8,10% - to 18,725,5 mln liters for 2014