The Luding Group Continues Supplying Ararat Cognac to Russia from the Yerevan Brandy Factory
The Luding Group continues to supply Ararat cognac to Russia, sourced from the Yerevan Brandy Factory. This update comes from the company and has been echoed by Kommersant, indicating that business relations remain active despite broader market disruptions.
According to Luding Group, the distribution agreement with Pernod Ricard, the brand and factory owner, remains in force. The company notes that Ararat’s distribution footprint covers virtually all of Russia, with the exception of federal retail networks. Since the contract began in October 2021, more than 1.3 million liters of cognac have been sold through these channels, not including volumes directly supplied by Pernod Ricard to major retail chains. These figures illustrate a steady demand for Ararat cognac within the Russian market, even as geopolitical tensions influence trade flows and regulatory landscapes across the region.
In relation to potential shifts in export policy, Vahan Kerobyan, a former Armenian economy minister, suggested that the Yerevan Brandy Factory, which produces Ararat cognac under Pernod Ricard, could face the possibility of halting exports to Russia. He clarified that his statements were not an official declaration. The discussion reflects ongoing concerns about how sanctions and political developments might affect long-standing export arrangements, and it underscores the importance of official communications from the involved parties for stakeholders across supply chains.
Since the onset of Russia’s military operation in Ukraine, several alcohol producers redirected their activities away from the Russian market. Brands associated with Diageo, LVMH, Pernod Ricard, and other corporations experienced shifts as companies reassessed exposure and compliance. The trend among a number of producers has been to reduce or pause certain shipments, while market observers noted a temporary dip in imports during the second quarter of 2022, followed by a gradual recovery as supply chains adapted and consumer demand persisted in various segments. Industry analysts emphasize that recovery paths vary by product category, brand, and distribution strategy, with some premium labels maintaining demand despite broader sanctions and credit constraints.