Law on brandy lowest release price is lobbied in Armenian parliament

PanARMENIAN.Net - Yerevan Brandy Company (YBC ) CEO Ara Grigoryan said that the Russian governmental decision on the lowest level of brandy release prices from January 1, 2011, has not affected the positions of Armenian brandy in the Russian market.

Rosalkogolregulirovanie (The Federal Service for Alcohol Market Regulation) has drafted a decree on minimum prices for brandy. The final minimum prices will be presented by the end of this month. However, it is already clear that producers’ shipping price should not be less than 150-160 Russian rubles for 0.5l (3-star brandy), the wholesale price – 165-175 rubles, while the retail price – minimum 190-210 rubles. Meanwhile, the lowest retail price of ArArAt brandy in Russia makes 650 rubles/1 bottle.

Ara Grigoryan added that a similar law is lobbied in the Armenian parliament. “The law is discussed, but it is not clear what a minimum price will be set by it,” he said.

Referring to cheap prices for the beverage that is sold in local market under Armenian brandy label for AMD 1100, the CEO labeled them as suspicious. Grigoryan noted that it is impossible to sell brandy at such price, purchasing grape for AMD 110-130/1kg and paying taxes.

The release price of a 3-star brandy of the YBC makes AMD 3,000 and it varies from AMD 3,500 to 3,700 in shops. Grigoryan added that the YBC has no profit from the sale of this type of brandy.