Armenian wine is one of the most famous in the world due to unique technologies and grape varieties that grow mainly in the Ararat valley. Winemaking in Armenia has traditions dating back to ancient times, and in recent years it has been gaining worldwide recognition – from regular festivals attended by European and world experts to lucrative contracts for the export of large quantities of exclusive and rare drinks.
In the decision to register a wine production company in Armenia, foreign investors and businesses get an attractive start in a country where literally every second citizen is engaged in grape cultivation. There are large vineyards with popular and rare varieties, and all conditions have been created for an easy start of a business, there is government support and investment protection.
Our lawyers will help you register a wine production company in Armenia remotely. The cost of services is from 3 800 EUR.
Registering a wine production company in Armenia – attractiveness of the industrial sector
Winemaking in Armenia is a historically established industry that deserves close attention. Some of the oldest wineries are located in Armenia, and the cultivation of grapes has been considered almost a national tradition since ancient times. Currently, the heritage of winemaking in Armenia is rapidly reviving – exclusive drinks are produced here from the rarest varieties that grow only in local conditions.
In the desire to register a wine production company in Armenia, foreign investors have excellent prospects and readily available sales market. However, let’s not lose sight of the moment that at the end of 2019, most of the finished products were consumed domestically (60% of the total production).
Why is the opening of a winery in Armenia attractive for foreign businessmen? Let us take a closer look at some of the key factors:
- Armenian wines and cognacs have historically been famous for their exceptional quality. For example, the Voskevaz winery was built back in 1932;
- the specific climate allows the cultivation of rare varieties of grape;
- even with a large number of vineyards, identifying suppliers of raw materials for the winery is not an issue;
- remote and fast turnaround of business registration enables the entrepreneurs to start an enterprise at low costs and without much hassle;
- Armenia’s participation in the Eurasian Economic Union provides convenient access to a market with more than 180 million consumers;
- Number of annual festivals, exhibitions and other events dedicated to Armenian wines make it possible to quickly and professionally promote your own brand;
- winemaking in Armenia is supported by foreign investments (one example is the cooperation of Voskeni Wines with the Russian School of Economics).
In the desire to register a wine production company in Armenia, foreign investors and businesspeople can take advantage of a number of privileges and have access to innovations which will help them deliver a truly unique world-class product.
Wineries of Armenia – tasting rooms, modern technologies and other opportunities for business development
The unique terroir of the republic, located in the Ararat valley, makes it possible to skillfully combine age-old traditions with modern developments and technologies, and to receive as an output products of exceptional quality. A striking example of this is the Voskevaz Wine Factory near Aragats in Armenia, which is currently constructing a full-scale tourist complex.
The revival of this wine factory began in 2004, and today the company creates unique and exclusive drinks along with popular and beloved wines and cognacs.
The Voskevaz plant is an attractive investment opportunity for foreign businesspeople with real prospects and potential, which however requires additional brand development and marketing. The technology of wine production provides for aging in barrels of a rare Armenian oak, and it was at this factory that the technology of drying grape berries was first applied. It is also worth noting here that the winery diligently preserves the architectural heritage, allowing visitors and tourists to get acquainted with ancient buildings with unique architecture.
Another industry leader is the Armenian Wine Factory with its widest range of brands. The factory evolved around a small vineyard in the late 90s, which was located in the Armavir region, where the popular varieties Kangun and Haghtanak were grown, and already in 2008 the family business grew into a large plant. At the moment, Armenia Wine Company is equipped with exclusively high-tech modern equipment:
In addition, the Armenian Winery has equipped tasting rooms, organizes tours that track the complete process of making wine and other drinks from grapes – from picking berries and aging in cellars to tasting finished products. In addition to its main activity and tourism, the company is engaged in the production of brandy. At the moment, the plant directly owns about 50 hectares of vineyards, which plans to expand to 200 hectares in the coming years.
Registering a wine production company in Armenia – possible barriers on the way to success
When establishing a company for the production of wines, foreign investors and businesspeople need to consider the possibility of acquiring agricultural land in Armenia. If you are planning to purchase raw materials from farmers, you will not encounter any issues. However, if you are planning to acquire land plots as a non-resident, you will need to obtain special residence status for a period of 10 years.
It should be borne in mind that a temporary and / or permanent residence permit also does not give the right to acquire land in Armenia. Another option is to register a full-fledged legal entity , which will be the owner of agricultural land plots.
There are no restrictions on commercial real estate (lease or purchase) for non-residents of Armenia – businessmen from other countries have the right to acquire offices, premises for warehouses, cellars and production workshops (or rent them) in their own name with registration of ownership.
Those who are interested in registering a wine production company in Armenia should take into account that the majority of the quality of drinks produced under the “Made in Armenia” certificate are considered starred products. At the moment, many indigenous Armenians who previously left the country are returning to their historical homeland and reviving winemaking. And this is not a mere act of patriotism, but pursues fully substantiated business goals based on pure calculation – this is a promising industry with a constantly expanding its export potential
Additionally, you should familiarize with the most famous wines of Armenia:
- Cabernet Sauvignon;
- Cabernet Francarnet;
- Armenia Muscat;
- Armenia Dry Rose and others.
In fact, winemaking in Armenia is not just an economically well-established and profitable industry, it is a part of Armenian culture. All conditions have been created in Armenia for a quick access to the international market and presentation of your brands to wine producers – by participating in standing exhibitions and thematic business breakfasts, as well as annual festivals, street celebrations and international events.
Register a wine production company in Armenia – achievements of the industry over the past 5 years
Winemaking in Armenia gained remarkable momentum in the early 2000s, and now local wines are exported to more than 20 countries of the world, including China, Russia, Belarus, France, USA, Mexico, Estonia, Latvia, Israel, Lithuania, Japan. For example, the Armenian Wine Factory annually exports about 2.5 million bottles a year, expands its presence by constant participation in international exhibitions and competitions.
The family-run Van Ardi winery is a noteworthy business that has combined the production of unique grape drinks with hosting tourist visits. The boutique winery regularly participates in international fairs (for example, in London), wine tours and Armenian festivals.
Another striking example of a successful wine business in Armenia is the Karas Wines company, which produces vintage wines from raw materials from Armavir vineyards. These are elite products supplied to European countries.
Those who plan to register a company in Armenia for wine production should also take into account the local mentality – at the initial stage the best alternative would be the production of popular drinks with a gradual expansion of the line to the level of premium wine. It is very easy for Armenian wines to gain worldwide reputation thanks to rare and exotic grape varieties that cannot be grown in any other region. In fact, Armenia has a unique terroir that allows you to quickly develop your own production. Adding to this the access to large sales market, winemaking in this republic is more than a lucrative initiative.
In the past five years, when Armenian wines, cognacs and brandy began to appear at European and Oriental exhibitions, won awards in various competitions in the Czech Republic, Latvia, and France. All these achievements, together with the increase in exports, attract a large number of specialists, experts and tasters of the international level to the country, who, after participating in annual exhibitions and festivals, conclude lucrative contracts with manufacturers in Armenia.
At the moment, the elegant and unique wines from local varieties, presented at the ArmAs Estate, have already been awarded with international awards. Zorah Wines and Hin Areni wineries have captured the attention of the international community due to the unique vineyards on volcanic soil.
Registration of a winemaking company – is it worth establishing a new legal entity?
We examined the privileges of the wine business in the Armenian jurisdiction from the point of formation of a new company. However, to have access to the developed industry of the country, foreign investors and businessmen can take advantage of many partnership offers. For example the following companies are in the lookout for potential investors to expand their business:
- Voskevaz Winery;
- ArmAs Winery;
- Wine Works;
- Maran Winery.
Their strengthening and further development requires capital investments that will allow them to develop the brands at an international scale, modernize production, expand the range of wines, covering elite and premium drinks supplied to the best restaurants in Europe.
Let us dwell a little more on each of the listed companies for the production of wine and grape drinks. Voskevaz Winery is based on the territory of one of the oldest wineries, producing fruit, grape wines, liqueurs and aged drinks. The company has created a large number of its own collections, recognized by world experts.
OOO Golden Grape Armas ( ArmAs Winery ) was launched in 2012, has about 400 hectares of land with vineyards, and more than 8 thousand fruit trees obtained under the investment program. In addition to the production of popular and vintage wines, the factory produces fruit juices and has launched agritourism.
In turn, Wine Works is a kind of incubator for wineries, helping to manage marketing and providing strategic support to wine producers. The company’s founder Vahe Keushgerian worked in the wine industry in Italy and the USA, after which he set up his own team in Armenia with a wide range of services – from planning grape planting, setting up a winery, to distribution and export.
Maran Winery Company is a historic winery, which grew out of the family business into a successful company in the 1990s. It combines French technologies with Armenian traditions, which allows the production of exclusively original world-class wine drinks. Expanding the production lines, the Armenian company began to produce unique varieties of vodka, pomegranate and apricot wine.
By channeling your own savings into existing wine companies in Armenia, you get a foundation for doing business, where you can introduce new ideas, use innovations and update equipment. If you plan to register your own wine production company in Armenia, you become a full-fledged owner of a fairly profitable business, provided that you properly structure and develop.
To register a wine production company in Armenia without a personal visit to the republic, write to our expert at email@example.com. We will prepare documents in a short time and submit them to the registration authorities. The cost of services starts from 3 800 EUR which does not take into account the commission for opening a bank account. If you need a corporate account in an Armenian bank to service a future company, we can be of assistance, at an additional fee. In this case, a one-time visit to Armenia will be required.
How profitable is wine making in Armenia?
Armenian wines are recognized at the world level. Participation in annual exhibitions, festivals and international events allow you to quickly promote your own brand. Armenia is also attractive for its special, unique grape varieties that cannot be grown in any other climate. Another advantage is a fast access to sales market; furthermore at the moment, domestic consumption has also increased – about 60% of the total production of wines and wine drinks is sold locally in Armenia. A large number of vineyards eliminates issues associated with finding suppliers of raw materials, and remote registration allows you to create a new legal entity in Armenia in just within 1-3 days.
Is it possible to buy shares in an existing wine factory in Armenia?
Yes, at the moment in the territory of Armenia Voskevaz winery with a unique technology of making wine needs professional marketing and support from foreign investors. The company possesses the necessary material and technical base, has its own proprietary recipe, and matures wines in barrels made of rare oak wood. This factory is the first in Armenia to use a unique technology for drying grape berries. The winery is one of the oldest in Armenia, therefore it tries to preserve the architecture and general appearance of the production facilities. Currently, Voskevaz brand is in need of full-scale promotion and replenishment of the line of wine drinks with new products (expansion of the product range).
What difficulties can arise when founding a winery in Armenia?
The first and main obstacle is the limitations inability to purchase land by foreigners. The solution of this issue is evident: arranging regular direct deliveries of raw material to the owners of vineyards in Armenia or the investor obtaining a special status of residence. The document is equated to the residence permit of Armenia, yet it provides wider range of opportunities. With a special status, foreigners can buy land plot for vineyards. The second option for solving the issue is registration of an Armenian legal entity that can buy agricultural land (the procedure takes from 1 to 3 days and does not require a personal visit of the founder to Armenia).