Armenian Winemaking From the history to the future with IT

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1 Armenian Winemaking From the history to the future with IT Samvel Machanyan, CISA Co-Creator, Chief Wine Enthusiast Alluria Wines

2 Agenda Armenian winemaking History Present situation Future

3 Areni-1 Cave The oldest-known winery discovered in 2011 in Vayots Dzor, Armenia. Dated to c BC, the site contained a wine press, fermentation vats, jars, and cups.

4 Rock-cut wine press in Agarak

5 Late 19th century 1877 Tairyants started industrial production of wine, in 1887 industrial production of brandy 1898 he leased the factory to Shustov, who later purchesed the factory

6 Our own «Judgement of Paris» 1901 Shustov unanimously sent some samples of his brandy to Paris and was granted the Grant Prix After he was granted the right to use «cognac» on his label in place of «brandy»

7 USSR and early 90 s Armenias main specialization was brandy 90 s noone cared about wine, everyone was busy surviving

8 Country information Area 29,800 km2, landlocked of which only 1/3 is arable Average altitude 1800m a.s.l From 55 cultivated grapevines 30 are white 25 are red 31 are used for winemaking, 21 are table grapes, 3 are used to make raisin

9 Winemaking Regions 1. Ararat / m. a.s.l 2. Armavir/ m. a.s.l. 3. Aragatsotn / m. a.s.l. 4. Vayots Dzor / m. a.s.l./ 5.Tavoush / m a.s.l / 6.Syunik / m Above see level /

10 Most famous Armenian indigenous grape varieties White Red Voskehat Kangun Garan Dmak Mskhali Lalvari Chilar Areni Noir Haghtanak Karmrahyut Tigrani Sev Sateni Sev Ararati

Vineyard data Grape growers - 66,544 farms About 70% grow

vineyards 15,117 ha Of which 11,255 ha technical varieties

vineyards, actually 70% of vineyards are in Armavir and

11 Vineyard data Grape growers - 66,544 farms About 70% grow grapes by-house, on total of 1639 ha Total hectares of vineyards 15,117 ha Of which 11,255 ha technical varieties 2,646 ha table varieties 1,216 ha universal Irrigated vineyards, actually 70% of vineyards are in Armavir and Ararat 64% of the vineyards are below 2 ha Based on EVN wine academy 2017 research data

12 Sector statistics Based on EVN wine academy 2017 research data

13 Sector statistics Based on EVN wine academy 2017 research data

14 Sector statistics Based on EVN wine academy 2017 research data

15 Winery of the last 10 years versus present Vineyard is the sole responsibility of the grape-grower Winemaking starts from winery Who looks at the bottle? Quantity over Quality Drip irrigation, Anti hail nets, Solar power? Waste of money! I don t need training We compete with other wineries Vineyard is one of the offices of the winemaker Winemaking starts from vineyard Wine bottle represents us. Quality over Quantity Drip irrigation, Anti hail nets, Solar power? Smart investment! I absolutely need to know more! We cooperate with other wineries

16 Renaissance of Armenian wine industry Winemaking recognized as the priority sector by the Government of the RA The rebirth of Armenian wines began only around a decade ago barely enough time for newly planted vines to come to fruition. The industry has received large investments, mainly from foreign (Diaspora) investors, that secure the new and advanced technology and improvement of production processes 40 wineries and winemaking companies and it is growing

Entering the market Strategy #1 Find/Hire a

17 Entering the market Strategy #1 Find/Hire a winemaker Find/Hire an grapegrower Buy/build a winery Buy/Build a vineyard or buy your grapes Build a brand Build your story Develop a marketing strategy Market your brand Sell Famous success stories with this strategy Zorah Karas ArmAs

18 Entering the market Strategy #2 Hire a professional winemaking company to make a wine for you With your desired color With your desired grape Name/brand And then they can Develop a marketing strategy Market your brand Sell Famous success stories with this strategy Semina consulting

19 Entering the market Strategy #3 Become a winemaker Become a grapegrower Build a winery Build a vineyard Build a brand Tell your story Develop a marketing strategy Market your brand Sell Famous success stories with this strategy Van Ardi Alluria

20 MAIN ACHIEVEMENTS In 2014 Armenia becomes the 46th Member State of the OIV Participation to a wine sector support program of Dutch Centre for Promotion of Imports from Developing Countries (CBI) Establishment of EVN Wine academy Intensive investments in quality wine production Selection of endemic grape varieties and establishment of nurseries Mundus Vini 2017: 10 Gold medals, 13 Silver medals

21 Local consumption According to the official statistics the annual consumption of wine is about 1.8 per/person. Wine bars are the new trend in the wine culture of the country.

Thank you! Շնորհակալություն Xвала! Samvel Machanyan, CISA Co-Creator, Chief Wine Enthusiast Alluria wines Email: smachanyan@alluria.

22 Thank you! Շնորհակալություն Xвала! Samvel Machanyan, CISA Co-Creator, Chief Wine Enthusiast Alluria wines fb: LinkedIn:

Assessment of Management Systems of Wineries in Armenia

International Wine Conference "Global Trends and Best Practices in the Wine World: Implications and Recommendations for Armenia" November 24, 2017 Assessment of Management Systems of Wineries in Armenia