OST-Alco brandy company to bottle Shustov cognac in Armenia
05.06.2008,
18:08
The Russian Ost-Alco Company plans to bottle its Shustov cognac in Armenia and France, the RBK daily reports.
YEREVAN, June 5. /ARKA/. The Russian Ost-Alco Company plans to bottle its Shustov cognac in Armenia and France, the RBK daily reports.
The company intends to bottle the cognac in its home, Armenia. At present, Ost-Alco is negotiating both with the Yerevan Ararat Brandy-Wine-Vodka Factory and the French Meukow to bottle the cognac in their facilities.
The Russian company believes a relevant agreement with the French company will contribute to fivefold increase of Shustov sales.
The maximal retail price of the cognac will rise from 600 rubles to 1,500 rubles for 0.5l. The retail price of the Russian Shustov is expected to reach some 700 rubles for 0.5l, whereas Armenian and Russian bottles will cost some 1,000 rubles and 1,500 rubles respectively. The minimal price of Shustov is 600 rubles now.
The cognac will change both its shape and taste soon, said Viktor Turshatov, public relations head of Ost-Alco.
The Russian company is negotiating with Armenian Ararat brandy producer (under the Noy brand) and the French Meukow (Compagnie de Guyenne Group member).
“We plan to keep bottling Shustov in the Chernogolovka enterprise and produce premium Shustov cognacs in Armenia and France,” Turshatov said.
Nikolai Shustov first bottled this cognac in Armenia at the turn of the 19th century.
A representative of the Armenian brandy factory confirmed they are negotiating with the Russian Ost-Alco, though he made no comments on their possible outturn.
Ost-Alco plans to end negotiations this summer and launch bottling of the Armenian and French cognacs in early 2009.
The company plans to invest some $2mln for restyling and marketing promotion.
Ost-Alco intends to increase the monthly output from 10,000 deciliters to 50,000 deciliters.
According to the Business Analytics, the share of the Shustov brand in Russian brandy market was 0.5%. Among top leaders are the Moscow (Moskovsky) Brandy Factory (15.8%), Kinovsky (4.8%) and Stariy Kenigsberg (Old Conigsberg) or Alyans-1982 (4.8%).
Despite its Armenian origin, Shustov is considered a Russian cognac. Therefore, Ost-Alco needs to make great efforts to remind customers it has ties with Armenia, said General Executive of the Moscow Wine Factory Yevgeny Kalabin.
In his turn, Director of the Tsifra (Digits) Branch Information Agency Vadim Drobiz disapproved of the idea of bottling Shustov in three countries. “It will water down the brand in consumers’ consciousness,” he said. “They could, for instance, produce the cognac in Armenia and sell it at the price it is sold in Russia.” Drobiz believes 1,000 rubles is too much for a bottle of Armenian cognac.
The Russian Ost Group involves 30 enterprises. Its principal shareholders are Larisa Pekareva (70%), spouse of the Russian Duma Member Vladimir Pekarev who is the founder of the company, Yelena Philopova (15%), Yelena Sorokina, Tatyana Pekareva and Vladimir Polikarpov (5% each). The company’s famous brands are Bogorodskaya, Stolnaya, Shustov (hard drinks), Vintage and Jet (low-alcohol cocktails), Napitki iz Chernogolovki (Drinks from Chernogolovka), Chernogolovskaya and Sobornaya (non-alcohol drinks). Ost Group’s output was $3.6mln deciliters. –0--
The company intends to bottle the cognac in its home, Armenia. At present, Ost-Alco is negotiating both with the Yerevan Ararat Brandy-Wine-Vodka Factory and the French Meukow to bottle the cognac in their facilities.
The Russian company believes a relevant agreement with the French company will contribute to fivefold increase of Shustov sales.
The maximal retail price of the cognac will rise from 600 rubles to 1,500 rubles for 0.5l. The retail price of the Russian Shustov is expected to reach some 700 rubles for 0.5l, whereas Armenian and Russian bottles will cost some 1,000 rubles and 1,500 rubles respectively. The minimal price of Shustov is 600 rubles now.
The cognac will change both its shape and taste soon, said Viktor Turshatov, public relations head of Ost-Alco.
The Russian company is negotiating with Armenian Ararat brandy producer (under the Noy brand) and the French Meukow (Compagnie de Guyenne Group member).
“We plan to keep bottling Shustov in the Chernogolovka enterprise and produce premium Shustov cognacs in Armenia and France,” Turshatov said.
Nikolai Shustov first bottled this cognac in Armenia at the turn of the 19th century.
A representative of the Armenian brandy factory confirmed they are negotiating with the Russian Ost-Alco, though he made no comments on their possible outturn.
Ost-Alco plans to end negotiations this summer and launch bottling of the Armenian and French cognacs in early 2009.
The company plans to invest some $2mln for restyling and marketing promotion.
Ost-Alco intends to increase the monthly output from 10,000 deciliters to 50,000 deciliters.
According to the Business Analytics, the share of the Shustov brand in Russian brandy market was 0.5%. Among top leaders are the Moscow (Moskovsky) Brandy Factory (15.8%), Kinovsky (4.8%) and Stariy Kenigsberg (Old Conigsberg) or Alyans-1982 (4.8%).
Despite its Armenian origin, Shustov is considered a Russian cognac. Therefore, Ost-Alco needs to make great efforts to remind customers it has ties with Armenia, said General Executive of the Moscow Wine Factory Yevgeny Kalabin.
In his turn, Director of the Tsifra (Digits) Branch Information Agency Vadim Drobiz disapproved of the idea of bottling Shustov in three countries. “It will water down the brand in consumers’ consciousness,” he said. “They could, for instance, produce the cognac in Armenia and sell it at the price it is sold in Russia.” Drobiz believes 1,000 rubles is too much for a bottle of Armenian cognac.
The Russian Ost Group involves 30 enterprises. Its principal shareholders are Larisa Pekareva (70%), spouse of the Russian Duma Member Vladimir Pekarev who is the founder of the company, Yelena Philopova (15%), Yelena Sorokina, Tatyana Pekareva and Vladimir Polikarpov (5% each). The company’s famous brands are Bogorodskaya, Stolnaya, Shustov (hard drinks), Vintage and Jet (low-alcohol cocktails), Napitki iz Chernogolovki (Drinks from Chernogolovka), Chernogolovskaya and Sobornaya (non-alcohol drinks). Ost Group’s output was $3.6mln deciliters. –0--
