PETpla.net Insider 06 / 2012

EDITOURS REPORTS 18 PET planet insider Vol. 13 No. 06/12 www.petpla.net Armenia blog Here in Armenia, one feature dominates the landscape: the steppe. Yet again the time zone has changed. Confusing, to say the least. At about 5 pm, after a long journey, I arrive in Yerevan. Prior to finding a parking space for the Editourmo- bil close to my appointment tomorrow with Pepsi, I drop into a nearby filling sta- tion for water as the tank is now totally empty. The next morning I am starting to feel the effects of the last few strenuous days. However, the morning dose of caf- feine restores the energy levels and I hasten to my appointment with Pepsi where Mrs Nune Stepanyan and Daniel Ghevondian answer my questions and take me round the modern bottling plants. There is no time to lose, for my next appointment takes me to the centre of Yerevan to Mr Hovhannes Azaryan of Grom LLC, a small family busi- ness producing PET bottles and filling beauty care products. After our meeting, it is lunch time and we enjoy a splendid meal in the private room of a sumptuous restaurant serving local delicacies. One of the minor sensations of the place is the tame brown bear besporting himself in the courtyard. An unpleasant surprise awaits me in the evening when eight burly policemen knock on my door, and take me briefly to the security office. It seems that the Edi- tourmobil has attracted their suspicions. It all turns out for the best in the end, we manage to understand one another with much arm-waving and gesticulation, and after noting my passport number they bid me a friendly farewell. It is the morning of October 19, as I make my way to my next appointment with Hytex, fortunately not too far away from my parking spot for the night. I am wel- comed by Mr Samvel Tumanyan and Mr Levon Meliksetyan, and over coffee and choco- late brandy beans (a local speciality) I learn a lot about not only preform pro- duction, but also about Armenia’s diffi- cult situation with Azerbaijan and Turkey and the resulting concentration of compa- nies in the purely national market. Around noon, it is time to take my leave of Armenia, and continue my journey to Baku. Getting into Azerbaijan is not so straightforward as it has to be via Georgia. And just to add to the complex border formalities it now starts to pour with rain again. - Kay Krüger - Pepsi Yerevan From water to CSD – how Pepsi is finding its way into Yerevan (f.l.t.r.) Nune Stepanyan, Kay Krüger and Daniel Ghevondian We met: Mr Daniel Ghevondian, Production Manager Ms Nune Stepanyan, Marketing Manager Pepsi’s site in Yerevan has a surface area of around 14,000 m 2 and employs around 200 staff. It has its origins in the “Jermuk Group“ water bottling plant which has maintained a considerable share of the market for natural mineral water in Armenia for some years. Following the post-Millenium decision to collaborate with PepsiCo, initial agreements were drawn up for the sale of Pepsi products in 2001; these were imported from Georgia and sold in Armenia. Then there was the question of distribu- tion and bottling; they decided over the following years to go for modern production lines from KHS with a view not only to taking over sales for Armenia but the bottling process as well. After final negotiations and corresponding laboratory tests carried out by Pepsi Ireland as regards product quality, initial production commenced in June 2011 once all the PET sys- tems had been finally installed by KHS and all tests had been successfully rubber stamped and signed off by PepsiCo. The spring which is being used for the individual Pepsi products is located in the vicinity of the site. Pepsi Yerevan uses one of three technologies installed in Pepsi plants all over the world; this is known as Gen 2 Green - this means that no chlorine is used for treating the water here. Products bottled are (sorted by sales): Pepsi, Mirinda Orange, Mirinda Green Apple, Seven Up and Pepsi Light. Mr Ghevondian reckons that Mirinda Green Apple may well soon overtake Mirinda Orange in the rankings because Green Apple is expe- riencing a high level of popularity in Armenia. Pepsi’s filling operations comprise PET volumes 0.5l, 1.0l and 2l with the 2l bottle enjoying the lion’s share of sales. In the capping sector, the company operates with closures sourced from Bericap. As far as the future is concerned, a 1.5l bottle is also planned. In addition, the launch of a new bever- ages line for the Pepsi juice brands in cartons is scheduled by the spring of 2012. The identity of the carton suppliers is still at the discussion stage. www.pepsico.com