Transcript First Visit - YBC considerations.ppt

First Visit - YBC considerations
Highlights
06 September, 2004
Reasons of success
• Traditional French Cognac technology that
uses oak constituents in the aging process.
Reasons of success
• The very special climate of the Ararat
Valley, that due to its elevation (high UV)
and dry air (enhanced metabolism) and soil
delivers exclusive high quality produce,
particularly grapes with inherently high
sugar content record.
Reasons of success
• Correct management and marketing,
albeit these notions were not that developed
at those times…
Privatization
• What do you think?
• Positive:
New, western style of management by an
experienced company.
• Negative:
100% shares are out of Armenia. If we
were smarter we could have gotten a better
deal.
Plant Specifics
• Long lasting technological processes –
longer is the ageing – better, but more
expensive is the product, thus…
Plant Specifics
• … huge inventory – like work in process.
This gives opportunities for optimization of
the product mix.
Plant Specifics
• Huge “inventory” of different brands of
cognac of different ages. All spread in more
than 11000 barrels of different sizes.
• A need for automated MIS (e.g. through
bar-code or RF microchip).
Plant Specifics
• Different aspects of transportation…
• … through the plant floor, pipework
organization, barrel layout, and…
• … driving between grape farmers, distillers
and main operation.
Plant Specifics - Bottling
• Bottle quality represents the “face” of the
company, and is very important from the
Marketing point of view
Plant Specifics - Bottling
• The idea of profitability of bottle
production in Armenia is not certain
• Italian bottle makers produce such huge
amounts, thus the cost is so much less, that
it is cheaper to even transport them from
Italy, rather than make them here in
Armenia in small quantities.
• A need for more investigation in this issue.
Research
• Plant has a laboratory, where the new
types of brandies are developed.
• However, there is a need for:
• More technological research to minimize
the losses, e.g. angels’ share;
• To implement IE (EM) concepts and
approaches.
Infrastructure
• What does this plant add to Armenian
infrastructure?
• Positive example of success in general and
particularly in the area of alcoholic beverages.
• Experience of specialists, knowledge.
• Testing and quality check facilities (equipment)
and traditions.
• Produce collection system, contracting with big
amount of farmers.
You have to pay attention to:
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%-age of the used capacities;
Times:
Yields:
Yields of spirit from the raw material – grape;
Yields of oak barrels from oak material;
Yields from oak barrels – how much brandy
you can expect from an oak barrel until it is
exhausted?