For over 7000 years wine is produced in Armenia; hence as new discoveries show Armenia can be considered as the cradle of wine production. Despite of or because of this tradition nowadays Armenia is more recognized for its prime brandy production than for its wine. Starting to operate a brandy business Pernod-Richard started to introduce numerous innovations. They introduced new processing techniques but also they started a new system to procure grapes. Today, years after the market entry of this foreign company one has to notice that the whole brandy business has changed. As we have observed in our field study, this development is not only limited to
the brandy production but also is valid for the wine business. Hence, the aim of our article is to describe the development of the Armenian wine and brandy business and to discuss in this context the influence that foreign investors have taken in this development. We further try to give
an outlook on the future role that foreign investors and their ideas will have for the Armenian wine and brandy business.