US embassy cable - 04YEREVAN2135

UNCLAS SECTION 01 OF 03 YEREVAN 002135 
 
SIPDIS 
 
COMMERCE FOR 4201/ITA/IEP/OEERIS/BISNIS/EHOUSE 
EMBASSIES - PLEASE PASS FCS 
 
E.O. 12958: N/A 
TAGS: KTDB, BBSR, BEXP, BTIO, AM 
SUBJECT: (IMI) BRIEF OVERVIEW OF ARMENIA'S FRUIT JUICE 
SECTOR 
 
 
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SUMMARY 
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1.  This cable provides a brief overview of Armenia's 
juice industry for those interested in trade and 
investment opportunities in Armenia.  It also includes 
a list of key contacts in this sector.  For more 
information contact the BISNIS representative or the 
Economic and Commercial Officer at the U.S. Embassy, 
Yerevan.  End Summary. 
 
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NATURAL FRUIT JUICE 
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2.  Juice processing is a growing sector of Armenia's 
food processing and packaging industry.  This market 
offers opportunities for U.S. business interested in 
direct investment, exporters of juice concentrates, and 
manufacturers of juice processing and packaging 
equipment.  Juice producers are looking for new 
technologies to expand their shares of the local market 
and to increase exports. 
 
3.  Armenia produces high quality fruits and 
vegetables, which grow mostly in the fertile and well- 
watered Ararat valley between Mount Ararat and Mount 
Aragats.  Over the past five years the fruit juice 
industry has expanded rapidly, and domestic production 
has almost entirely replaced imports.  In 2003 packaged 
natural juice production increased by 70 percent on the 
previous year.  Several fruit juice producers have 
renovated old facilities, installed new processing and 
packaging lines, and used both locally produced and 
imported concentrates to produce higher quality drinks. 
The Armenian natural fruit juice market is divided 
between several privately owned domestic producers, 
including Euroterm, SIS Natural, Tamara Fruit, Yerevan 
Beer, Zovq, and a few fruit juice importers. 
 
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LOCAL PRODUCERS 
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4.  Euroterm JSC:  Established in 1998, Euroterm is now 
the largest local producer of natural fruit juices in 
Armenia.  The company has invested more than USD 5 
million to install a Tetra Pak fruit juice processing 
and packaging line imported from Sweden.  Currently the 
company produces 3 million liters of juice annually in 
1L or 0.25L packages.  In 2003, the company produced 
1,400 tons of juices out which 850 tons were exported 
to Russia, USA, Belarus, Lebanon, France, and Japan. 
Euroterm imports packaging materials, mostly from 
Sweden, and fruit concentrates, mainly exotic fruit 
purees.  Euroterm seeks a foreign partner that could 
increase Euroterm's working capital to expand the 
purchases of raw materials.  The company employs 120 
specialists and 300 seasonal employees. 
 
Contact:  Vahe Ghazaryan, General Manager 
15a Amiryan street 
Yerevan-10 
Tel: (374-1) 53-84-45 
Fax: (374-1) 53-75-71 
E-mail: euroterm@arminco.com 
www.noyan.am 
 
5.  SIS Natural JSC:  Established in 2000, SIS Natural 
produces 30 types of fruit, berry, vegetable, and 
citrus juices packed in 1L and 0.25L glass bottles. 
Some of the juices are made using cold pressing 
technology.  The company also produces rose hip nectar, 
pomegranate and sea-buckthorn juices that have become 
popular in the local and export markets.  SIS Natural 
seeks foreign partners to help expand its production 
and provide access to foreign markets. 
 
Contact:  Armen Hakobyan, President 
2 Mamikonyants Street 
Yerevan-14 
Armenia 
Tel: (374-1) 23-33-36 
Fax: (374-1) 23-55-33 
E-mail: armsis@arminco.com 
 
6.  Tamara JSC:  Tamara is a private food processing 
company established in 1988 that boasts the local 
markets most popular ice cream.  In 2001 the company 
purchased the Carbi cannery in Aragatsotn province of 
Armenia and started the production of natural fruit 
juices marketed in 1L and 0.33L glass bottles.  The 
company's products are exported to Russia and the 
United States. 
 
Contact:  Boris Hovhannisyan, Chairman 
1 Nairyan Street 
Town of Abovian 
Kotayk province 
Armenia 
Tel: (374-1) 28-16-24 
Fax: (374-22) 36-606 
E-mail: info@tamara.am 
www.tamara.am 
 
7.  Yerevan Beer JSC:  One of Armenia's largest beer 
producers, Yerevan Beer also produces natural fruit 
juices in 1L, 0.5L, and 0.25L packages. 
 
Contact:  Hakob Hakobyan, Managing Director 
8 Admiral Isakov Ave. 
Yerevan-82 
Armenia 
Tel: (374-1) 52-21-41 
Fax: (374-1) 58-37-54 
E-mail: kilex@arminco.com 
 
8.  Zovq JSC:  The former state-owned plant was 
privatized by the SIL Group in 1997.  The Armenian - 
UAE joint venture produces natural fruit juices packed 
in 1.5L, 1L, and 0.25L plastic and glass bottles. 
 
Contact:  Tigran Movsisyan, Managing Director 
99 Artashisyan Street 
Yerevan-86 
Armenia 
Tel: (374-1) 46-21-30 
Fax: (374-1) 46-28-00 
E-mail: info@sil.am 
www.sil.am 
 
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IMPORTED FRUIT JUICES 
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9. The imported fruit juices market has been declining 
as domestic production replaces much of the market. 
These are the major imports: 
 
BRAND/PRODUCER         AVERAGE RETAIL 
                       PRICE FOR 1L PACK 
 
Queen's/Litex 
(Bulgaria)             USD 1.15 
 
Chiquita 
Italy/USA              USD 1.20 
 
Pfanner, Rauch 
(Austria)              USD 1.90 
 
Santal/Parmalat 
(Italy)                USD 2.20 
 
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KEY CONTACTS 
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U.S. Department of Agriculture's Marketing Assistance 
Project 
74 Teryan street, Yerevan, Armenia 
Tel: (374-1) 52-55-62 
Fax: (374-1) 58-79-28 
E-mail: map@usda.am 
Web site: www.usda.am 
 
Armenian Development Agency 
Contact:  Vahagn Movsisyan, Executive Director 
17 Charents street 
Yerevan-25 
Tel: (374-1) 57-01-70 
Fax: (374-1) 54-22-72 
E-mail: info@ada.am 
 
GODFREY