[author: Talar Sarafin]
Talar Sarafian is the co-founder and co-owner of Aran Wines, which produces wines from vineyards in Armenia. Aran Wines is built on a legacy of winemaking in Armenia that dates back to 4,000 B.C., but modern-day geopolitical conflicts have forced the company to pivot—not once but three times. Talar shares her story and how her company has persisted from one crisis to the other.
Q: You and your husband are Armenian and in 2005 bought a vineyard in Armenia. What started as a passion project turned into a full-fledged business when you began producing estate-grown wines in 2018 under the label Aran Wines. When it comes to wine-producing countries, most people don’t think of Armenia. Tell us about Armenian wines.
Talar: Armenia is actually one of the oldest wine producing regions in the world. Armenians have been making wine for thousands and thousands of years. In 2007, archeologists discovered a cave known as the Areni-1 Cave. In the Areni-1 Cave, archeologists unearthed a winery that is believed to be 6,100 years old. They found artifacts of winemaking that dated back to 4,000 B.C., including clay pots that were used to ferment the wine and grape seeds which, through genetic analysis, were found to be the original varietals that are used in Western European winemaking today.
This ancient tradition of winemaking continued to modern times but suffered a major setback during the period when the Soviet Union controlled Armenia. The Soviets used the grapes to make brandy, vodka, and fortified wines. Because of this focus, many of the 400 indigenous grape varietals died out for lack of cultivation. Now there are only 55 of those varietals being used in wine. Since Armenia gained independence from the Soviet Union in 1991, there has been a renaissance in winemaking, including an ongoing effort to reinvigorate some of the varietals that were thought to have been lost. Today, winemaking has become one of the leading drivers of economic growth in Armenia.
Q: Your company, Aran Wines, is owned by you and your husband. What prompted you to start the business?
Talar: My husband is third generation American-born Armenian and, although I was born in Istanbul, my family is originally from Armenia. My family immigrated to the United States when I was only 9, so I’ve lived here most of my life. My husband was always exploring different business opportunities in Armenia, but winemaking was not initially one of them. While we both enjoyed wine, it was a romantic dream to think we might own a vineyard and make our own wine. That dream became a possibility on one of my husband’s trips when he found a piece of land that was available. The land was barren but suitable for growing grapes. The opportunity seemed right, so in 2005 we decided to buy the land. We cultivated the land, planted the grapevines, and watched the vines grow. At the time the vines began producing grapes we had three small children, and it didn’t seem like the right time to start making our own wine. So, we started to sell the grapes to other wineries and directly into the market. By 2018 the wine culture in Armenia had really exploded. On a family vacation to Armenia that year we realized that great wine was made from Sireni grapes, which is the varietal we were growing in our vineyard. That was the moment my husband and I decided it was time for us to make our own wine. That’s how it started – 2018 was our first vintage.
Q: It’s hard running and growing a business under any circumstances. However, you had to manage yours long distance. How did that work?
Talar: Our biggest issue was finding the right people to partner with – people we trusted to produce the best possible product. We were very lucky to have been introduced to some very highly qualified professionals on the ground who were willing to work with us. We had a great winemaker and a wonderful manager who ran the vineyard operations. We would be in touch with them virtually and, while I stayed home with the children, my husband would visit the winery about three to four times a year. The key factor that made this work was trust. Without trust in our people, it would be impossible to run a company long distance. For example, there have been years when we have not been able to taste some vintages before they were bottled and we have had to rely on our winemaker, who is really top notch, to make the right decisions.
Q: Most entrepreneurs face challenges that force them to pivot and rethink all or part of their business model, but not many are forced to pivot the way you did. Tell us about that.
Talar: In September 2020, war broke out between Azerbaijan and Armenia over control of the Armenian Republic of Artsakh, which for years had been populated by Armenians. The war lasted 44 days, and when a peace agreement was signed granting control over much of Artsakh to Azerbaijan, a border was drawn through Artsakh with Armenia on one side and Azerbaijan on the other. Our land was on the Azerbaijan side and was confiscated without any reparations. That led to our first pivot. The loss of our land didn’t affect our production facility, which is in the Armenian capital of Yerevan. However, we had to figure out where we could buy Sireni grapes, which only grow in Artsakh. We were able to buy Sireni grapes from a neighboring village that was not signed over in the peace agreement and was still within Armenian-populated territory. As a result, we were able to produce our 2020, 2021, and 2022 vintages.
Then came the circumstances that prompted our second pivot. In December 2022, Azerbaijan decided to blockade the entire Artsakh region, which meant that we could not get any grapes we bought in Artsakh out of the region in order to make our wines. And in September 2023, Azerbaijan took control of the entire region of Artsakh, effectively preventing us from buying any Sireni grapes, which led to our third pivot – sourcing a different varietal – Areni grapes – from Armenia proper. As of January 1, 2024, the Armenian Republic of Artsakh will be dissolved. We will continue to make our wine at the same facility in Yerevan but using Areni grapes.
Q: For makers of consumer products, particularly in the food and beverage industry, distribution is key. What are the challenges of managing distribution into the U.S. and other countries?
Talar: The United States is our primary market, but we also sell in Russia, Australia, and of course Armenia. We act as our own importers through a separate company, and we handle our own distribution through a third-party clearing company. We are licensed to distribute in seven states, and we can sell to consumers in 42 states directly from our website. For Massachusetts, New York, and New Jersey, we work with additional distributors that help us get into stores. We have a solid distribution strategy, but right now our biggest challenge is inventory. We’re waiting on a container that is six months overdue because of the conflict in the region.
Q: As someone who has faced formidable challenges building and running her business, what advice to you have for other entrepreneurs?
Talar: Be persistent. Persistence is key. Although there will be many times when you feel like packing it in, you have to take the long view and keep going forward. Good opportunities sometimes present themselves when you least expect it. So be open to opportunities whenever they arise, take advantage of them, and then just keep going forward.
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