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Winemaking is developing in Armenia, new companies enter the market, while the old ones increase the quality of their product, Avag Harutyunyan, Chairman of the Union of Winemakers of Armenia told reporters at a meeting.

“The quality of the wine has changed in Armenia,” he said, adding that according to official data, for the first five months of the year 2016 as compared to the year 2013 the production volumes for vodka has increased by 5%, for cognac production - 8%, for wine - 20% and 28% for bear production.

For the period of January-May 2016 the level of vodka production has decreased by 10% as compared to the indicated period of the year 2015, 12% of the bear production, while the production of wine and brandy has increased by 56% and 11% respectively.

“We are dealing with a new situation, when we register growth according to state data, while the reality shows the opposite. According to our data, which are not official, though reliable, the growth is zero in terms of the quantity and minus 25-30 in terms of the price. That is to say, new players have entered the brandy and wine market, who export and import without violating the law, ensuring growth in price and quantity, yet it has no impact on the economy,” Harutyunyan stressed.

Chairman of the Union of Winemakers of Armenia reflected on the external factors, suggesting the ruble devaluation had a particular negative effect on the brandy production.

According to him, Armenian brandy aged 3 years has been exported at 3,5 USD, while the price now is 2,5 USD due to the devaluation.

“This means the Armenian brandy makers try not to lose the market, which makes pointless the idea of making profit. They even suffer losses,” maintained Harutyunyan.

As a result of the situation, today Armenian brandy is sold cheaper in the Russian market than the Georgian, Azerbaijani, Dagestan productions of the same quality.”

“One may wonder where is the idea of the brand? This does not refer to some producers, who managed to maintain the prices, although they still lacked any profit.