Author: Andres-Papazian

Crain’s Chicago Business
July 31 2010

Argo Tea brews up big plans to expand
By: David Sterrett July 29, 2010

(Crain’s) ‘ Backed by big-name Chicago money, Arsen Avakian is
flooding Manhattan with tea.

Sam Zell, Glen Tullman and Oxford Capital are among the investors
funding the first foray outside Chicago by Mr. Avakian’s Argo Tea. He
is set to open his fourth cafe this year in New York on Friday, hoping
a splashy debut in the country’s biggest market will help make Argo
the Apple to Starbucks’ Microsoft.

`I want to build the Apple of tea, and really create a premier global
brand,’ says Mr. Avakian, 34. `We have really reached a growth tipping
point for us and are ready to take growth to the next level.’

Seven years after the Armenian immigrant opened the first Argo Tea
store in Lincoln Park, the chain has 18 locations and more than $10
million in sales. Mr. Avakian’s two-pronged growth strategy focuses on
opening more cafes and selling a new line of bottled Argo tea in
grocery stores.

The push into Manhattan will test Argo’s appeal outside its home
market. A major challenge for Mr. Avakian is persuading large numbers
of Americans to drink more tea. He’ll also have to woo tea-drinkers
away from bigger rivals like Starbucks and mass-market brands like
Lipton that dominate grocery store tea sales.

The U.S. tea market grew 3% last year to $7.3 billion, according to
the Tea Assn. of the USA Inc. in New York. That’s a fraction of the
$40-billion coffee market.

`Tea is definitely one of the hot categories, and it’s a very large
category, but coffee is still dominant,’ says Harry Balzer, an analyst
at NPD Group in New York.

Mr. Avakian drank tea while growing up in Armenia. After working for
several years in the U.S. as an information technology executive’and
marveling at the success of a Starbucks chain offering what he
considers a bland menu’he became convinced that a chain of high-end
tea shops could succeed here.

`When I stated Argo I had the vision of being the Starbucks of tea,
but in the last few years I realized that is no longer our
inspiration,’ he says. `Starbucks is more like PC’it’s old, less
healthy and designed for everyone’and we want to be more like Mac:
young, healthy, cool and a more unique, innovative brand.’

Seattle-based Starbucks did not return calls seeking comment.

Argo specializes in exotic blends, such as white tea with Acai berry
and lemonade, and red tea with pomegranate juice. The chain makes a
point of buying all of its tea leaves directly from farmers in 16
countries.

Darren Tristano, an executive vice-president at Technomic Inc. in
Chicago, says Argo Tea is the largest chain focused on tea. He reckons
the challenge for the company will be to maintain its quality as it
expands to new markets.

Neither Mr. Avakian nor his investors will say how much capital Argo
Tea has raised to finance its expansion. Mr. Zell invested through his
Chicago-based Equity Group Investments LLC, which declines to comment.

Mr. Tullman, CEO of Chicago-based Allscripts-Misys Healthcare
Solutions Inc., invested after he noticed an Argo Tea cafe near his
home and arranged a meeting with Mr. Avakian at the shop.

`He told me exactly where he bought each tea and how it was brewed,
and in the midst of it he stopped to tuck in a cord he noticed was
sticking out from behind the register in the cafe,’ Mr. Tullman says.
`I decided right there that I wanted to invest in this guy because of
his passion and fanatical attention to detail.’

Mr. Avakian won’t disclose specific growth targets but plans to open
another store in New York this year and a licensed location at Saint
Louis University. Next year, he wants to open at least five more
stores in New York and several more in Chicago and prepare to launch
in Los Angeles and London.

Grocery stores represent a potentially more lucrative channel for Mr.
Avakian’s teas. Despite a slowdown because of the recession, sales of
bottled tea grew more than 3% to $3 billion last year, according to
the Tea Assn. Argo sells bottled specialty teas at local Whole Foods
and Treasure Island stores. Mr. Avakian hopes to get them into Jewel
and Dominick’s stores in the next year.

`They are selling really well, and people have been excited to see the
Argo brand in our stores,’ a Whole Foods spokeswoman says, declining
to provide specific sales numbers.

Argo will have to fight for grocery store shelf space with Unilever
PLC’s Lipton, Texas-based Dr Pepper Snapple Group’s Snapple and New
York-based Ferolito Vultaggio & Sons’ Arizona teas. The three control
more than 50% of grocery store tea sales, according to SymphonyIRI
Group, a Chicago-based market research firm.

Mr. Avakian says in the next year he expects to open a large bottling
facility in Chicago, which will require more financing. He says every
store is profitable but declined to provide specifics on the company’s
finances or what type of funding it would seek to expand.

`I believe Arsen will continue to be able to raise the capital he
needs to continue to build this into a global brand,’ says John
Rutledge, CEO of Chicago-based Oxford Capital Group LLC, which has
$3.5 billion in investments, including Potbelly Sandwich Works LLC and
Argo. `Arsen is a hungry first-generation immigrant and a very savvy,
well-educated executive’that is a very powerful combination.’

From: A. Papazian

news.az, Azerbaijan
July 31 2010

Time for NATO to get involved in Karabakh conflict settlement, MP
Sat 31 July 2010 | 05:48 GMT Text size:

Zahid Oruj Zahid Oruj has commented on the concern of the Armenian
speaker about the discussions of the Karabakh conflict in the NATO
Parliamentary Assembly.

‘If the NATO Parliamentary Assembly adopts a resolution on Karabakh
conflict soon, I think there will not be a single international
organization in the world that had not condemned Armenia for
occupation of Azerbaijani lands. Therefore, Armenia fears the adoption
of such resolution in the NATO Parliamentary Assembly’, MP Zahid Oruj
said commenting on the letter from Armenian parliament speaker Hovik
Abramyan to NATO Parliamentary Assembly president John Tanner urging
not to discuss the Karabakh conflict.

‘After the resolution of the European parliament which had a cold
shower effect on Armenians, they seem to try to avert the events.
However, they will not manage to do so, since NATO is not the
organization that will affect its geopolitical interests in Azerbaijan
because of the sick imagination of Armenians’, he said.

Oruj drew attention to the fact that it is time for NATO to take an
active part in the resolution of the Karabakh conflict. He stressed
importance to include the just solution to conflicts in the South
Caucasus to the new strategic concept.

Meanwhile, Oruj recalled the words of NATO Secretary General Andres
Vog Rasmussen who said NATO will insist on strategic plans of support
to territorial integrity and sovereignty.

1 news.az

From: A. Papazian

news.az, Azerbaijan
July 31 2010

Baku may start direct talks with Karabakh under some circumstances, MP
Sat 31 July 2010 | 06:07 GMT Text size:

Aydin Mirzazade Official Baku may start direct talks with Karabakh
only if Armenia withdraws from the occupied territories of Azerbaijan.

‘However, if there were no Armenian troops in the Azerbaijani lands,
Baku could have agreed to direct talks with Karabakh’, said the deputy
chairman of the parliamentary Defence and Security Committee of the
Milli Majlis, Aydin Mirzazade commenting on the leader of the Armenian
community of Karabakh, calling himself the head of unrecognized
`Nagorno Karabakh Republic’, Bako Saakyan who stated the impossibility
to reach peace without `NKR’s” full participation in the negotiation
process.

‘In case of withdrawal of Armenian forces from the occupied lands, the
central power of Azerbaijan would have held serious talks with leaders
of the Armenian community of Karabakh and come to the results meeting
the demands of both parties’, he added.

However, the parliamentarian noted that the fact of the Armenian
occupation of Azerbaijani territories still remains. ‘Therefore,
Azerbaijan, is now holding talks with the party that has occupied its
lands, that is, with Armenia’, he said.

A. Mirzazade also stressed that Armenia, advising other countries to
recognize Karabakh’s independence, does not take appropriate action
itself.

‘Why does Armenia, an outpost of Russia, not want to recognize the
independence of Abkhazia and South Ossetia? Therefore, instead of
urging Azerbaijan to take into account the decision of the Hague
Court, B. Saakyan should rather show respect to the international law
and fulfill the four UN Security Council resolutions, some resolutions
of the Parliamentary Assembly of the Council of Europe, as well as the
EU’s resolution recognizing the territorial integrity of Azerbaijan
and calling for the withdrawal from the occupied Azerbaijani lands’,
he said.

Interfax-Azerbaijan

From: A. Papazian

news.az, Azerbaijan
July 31 2010

Talks ‘must continue’ between Baku and Yerevan
Sat 31 July 2010 | 05:53 GMT Text size:

Bayram Safarov Azerbaijan to hold talks on Karabakh conflict
settlement with Armenia, head of the Azerbaijani community of Nagorno
Karabakh Bayram Safarov.

‘Karabakh Armenians are the citizens of Azerbaijan. What can the
Azerbaijani state negotiate on with their citizens? Azerbaijani lands
are occupied by Armenia, therefore, talks must continue between Baku
and Yerevan’, said Safarov commenting to Interfax about the leader of
Nagorno Karabakh separatists Bako Saakyan about the need for
separatists’ participation in talks between Baku and Yerevan.

“Karabakh Armenians who constitute 30,000-40,000 people are the same
community as Karabakh Azerbaijanis. If the Armenian community of
Karabakh was wiser, it could have enjoyed the development level of
Azerbaijan”, he said.

Commenting on Saakyan’s words “about impossibility of further return
of Karabakh to Azerbaijan”, Safarov said Karabakh is the Azerbaijani
land. “Azerbaijan cannot grant a part of its lands to another state”,
he said.

ANS PRESS

From: A. Papazian

Panorama.am, Armenia
July 31 2010

U.S. Senate web site added Bryza’s name: What will happen on August 3?

U.S. Senate Committee on Foreign Relations web site published the list
of nominees to different diplomatic positions. Panorama.am reported
earlier that the list of the business meeting scheduled on August 3
lacked the name of U.S. Ambassador to Azerbaijan Matthew Bryza, but
surprisingly, the name appeared in the list.
U.S. Senate Committee on Foreign Relations web site reports about 32
nominees to Ambassadors and other diplomatic positions.
On August 3 a business meeting is scheduled with the President of the
Committee Senator Kerry.
It’s worth reminding ARF Armenian Cause Office Director Giro Manoyan
told Panorama.am earlier a voting would take place on August 3. `That
is going to be a voting, not a meeting, as committee’s former meetings
were called meeting but a voting took place.’
U.S. Senate Committee on Foreign Relations held hearings on July 22 on
Matthew Bryza’s candidacy.

From: A. Papazian

Trend News Agency, Azerbaijan
July 31 2010

U.S. Senate to take vote on Matthew Bryza’s candidacy for post of U.S.
ambassador to Azerbaijan
31.07.2010 11:03
Azerbaijan, Baku, July / Trend, E.Tariverdiyeva /

Voting on Matthew Bryza’s candidacy for the post of the U.S.
ambassador to Azerbaijan will be held Aug.3 in the U.S. Senate
Committee on Foreign Relations, the Senate committee’s official
website reports.

Earlier, the Armenian media outlets reported that Bryza’s name is not
include in the list of ambassadors and candidates for ambassador posts
in 25 countries.

The first hearing in the Senate to discuss Bryza’s candidacy was held July 23.

Post of head of the American diplomatic mission in Azerbaijan remains
vacant for almost a year.

Earlier, the U.S. congressmen Solomon Ortiz, Michael McMahon, Michael
Conaway, Bill Shuster, Sue Myrick, Shelley Moore Capito sent to
Congress a letter in which they supported the candidacy of Matthew
Bryza for the post of ambassador extraordinary and plenipotentiary
ambassador to Azerbaijan.

In the letter, the congressmen ask to accelerate the process of
appointing a U.S. ambassador to Baku and expressed satisfaction with
Bryza’s nomination for this post by Barack Obama on May 25.

From: A. Papazian

news.az, Azerbaijan
July 31 2010

Russian authorities seem unwilling to annoy partners in Armenia
Sat 31 July 2010 | 07:07 GMT Text size:

S-300 air defense system News.Az interviews Alexei Nikolski,
correspondent of Russian Vedomosti

Why do you think Russian and Azerbaijani officials refuse to comment
on the information of Russian supplies of 3PK S-300 PMU-2 Favorit to
Azerbaijan you have used?

They have a right not to comment on the deals in the sphere of
military supplies, especially such complex and expensive ones. Russian
authorities seem not to be willing to annoy partners from Armenia in
public, as well.

Is this information reliable considering the fact that it was
dismissed by some representatives (though anonymous) of the Russian
military circles?

Well, the representative of Rosoboronexport said in open that he knows
nothing about the contract. Nonetheless, I still believe this
information is true.

Do you share the opinion that the purchased weapon is mostly designed
to secure Azerbaijan from Iran?

Yes, I do.

Meanwhile, your article has caused a great stir in Armenian mass media
who state the anti-Armenian direction of these military supplies for
Azerbaijan. What can you say about it?

Naturally, any supplies of Russian arms to Azerbaijan create concerns
in Armenia (especially because it is Russia’s military ally), like the
supplies of arms from Russia to Armenia cause concerns in Azerbaijan.
Nonetheless, in both cases all the declared arms supplies were not
destabilizing, like the supplies of C-300 to Azerbaijan.

In fact, neither Armenia nor Azerbaijan has arms system that C-300
PMU2 may fight with. However, to ensure missile defense of such a big
city as Baku and adjacent oil fields, the purchase of anti-missile
C-300 is the most effective solution by cost/effectiveness criteria.
The purchase and maintenance of new fighters by Azerbaijan would have
been more expensive (and be potentially more destabilizing for the
Armenian-Azerbaijani military balance). To compare, new Su-30 fighter
costs $40-50m, US F-16 $60-70m depending on modification not speaking
of ammunition reserves, spare parts, expensive training of pilots and
so on. It is militarily senseless to buy less than 10-12 fighters
while the operation of two C-300 divisions is much cheaper than of
dozens of modern fighters. It is clear that the purchase of the same
number of US anti-missile Patriot, analogous to C-300, would also be
much more expensive.

Baku needs missile defense as a big modern city regardless of
Azerbaijan’s neighbors. In the USSR times the missile defense of the
Baku industrial region was among the most powerful (since the war
times), it is clear that everything worn out through 20 years of
independence and probably a greater part of technique has been written
off or worn out (like in other former USSR countries). Thus, it is
necessary to renew it anyway. Even poor Tajikistan purchases
modernized C-125 complexes (which are far cheaper but having less
capacities) from Russia (Russia seems to pay for them in part).
Kazakhstan purchases C-300 early modifications from the Russian army
and will likely purchase new C-300 PMU-2, while old ones have been
transferred by Russia and Belarus, some other CIS countries
(Uzbekistan and Kazakhstan) also modernize old Soviet complexes C-125
by means of Russia or Belarus.

Azerbaijani authorities say Baku preserves the right to liberate lands
through war and therefore it strengthens its military potential in
conditions of continued Armenian occupation. Are the statements
accusing Baku of groundless military rhetoric justified in such
conditions?

I cannot answer the question since I am not an expert in foreign policy.

Do you think the possibility of resumption of hostilities between
Azerbaijan and Armenia for Nagorno Karabakh is high?

Hardly, both countries need this, but I am not the expert in this issue.

Russia is Armenia’s military and strategic ally both on the bilateral
level and within CSTO. At the same time, Moscow seems to be developing
quite active military cooperation with Azerbaijan. Do you think Russia
will preserve neutrality in case Armenian-Azerbaijani war resumes?

I suppose that Russia (along with other concerned countries as Turkey,
US and CIS countries) can avert this war.

Alexei Nikolski, is correspondent of Russian Vedomosti, co-author of
the article `Baku, if not Iran’ on Russia’s intention to supply 3PK
S-300 PMU-2 Favorit to Azerbaijan published on July 29.

Lala B.
News.Az

From: A. Papazian

Panorama, Armenia
July 31 2010

Will Turks open Igdir border

Turkish group of experts carries out a research at the
Armenian-Turkish border. Amir Chicheq, the Governor of Igdir answered
to the reporters’ question if those researches are aimed to open the
Armenian-Turkish border: `No, that’s not true. I can’t give any
comment.’
`Haberturk’ reported research is being carried out in Alican point,
Igdir and the bridge nearby. Restoration activities are being held to
reconstruct the bridge and the road.

From: A. Papazian

news.az, Azerbaijan
July 31 2010

Azerbaijan has right to buy everything for its security
Sat 31 July 2010 | 07:44 GMT Text size:

Uzeir Jafarov News.Az interviews military expert Uzeir Jafarov.

Azerbaijan has set a record for post-Soviet countries on the purchase
of foreign arms: Russia will supply Baku with anti-missile S-300 PMU-2
Favorit. What does Azerbaijan need this military technique for?

I would not say that Azerbaijan has set a record on arms purchase. Our
neighbors that are at war with us, have purchased arms and technique
ten times as frequent as we have in the past years both legally and
illegally. Thus, this is a different matter and I do not want to stop
on it. As for Azerbaijan, if I am not mistaken, in the past years our
country purchased weapon and technique from such countries as Belarus,
Ukraine, Romania and others. I do not remember any information about
our purchase of something grandeur, from the category of heavy armed
technique from Russia. I remember that we purchased sanitary wheel
technique, like UAZ, as well as secondary things. The information
about Azerbaijan’s purchase of anti-missile system from Russia is a
good news personally for me though I do not support buying technique
made in 1979 for our armed forces. You know this is when C-300 was
produced. The matter is that our neighbors have bought this system
long before and they are trying to outline their superiority. But I
think now they will think a little bit. We understand that our
neighbors will now find it difficult to boast, but this is a fact.

Russian military experts believe that the supplies will hardly change
the balance in the Armenian-Azerbaijani relations since neither
Armenia nor Azerbaijan have modern offensive aircrafts, cruise and
ballistic missiles against which C-300 is intended. Baku seems to be
willing to secure itself from any attacks in case of worsening of
situation around Iran. Do you think Baku fears rocket attacks by Iran?

We are a sovereign state and we have a right to purchase everything
necessary for country’s security. The purchased technique is purely
for protection of country’s interests. It is not targeting anyone.

Which advantage will the purchase of S-300 anti-missile system give to
Baku? Why do you think the information about the deal stroke last year
has been made public just now? Is there a hidden sense now, because it
turns out that the information about it is made public when in fact
the negotiation process on Nagorno Karabakh conflict has stalled¦

First of all, this information appeared just now for neither Armenia
nor Azerbaijan to think about new clashes in Karabakh. The parties
have recently been making many statements regarding hostilities and
naturally such bellicose rhetoric in the region makes superpowers, who
are responsible to the situation, do some correctives. The
ineffectiveness of the negotiation process, passiveness of superpowers
regarding the bloodshed, death of civilians and servicemen promote the
appearance of this information now. That is, there is a specific game
between the parties. Those who benefit from this picture are likely to
provide a dose of information to public.

Russia has sold anti-missile systems to Azerbaijan. Moscow’s financial
interest in this case is clear. Meanwhile, as is known Russia granted
arms to Armenia in the amount of $800m a few years ago. Do you think
Russia is thereby trying to restore the balance of powers between
Armenia and Azerbaijan?

I do not think that in exchange to the arms Russia supplied to Armenia
freely in the past and just recently, it is now creating a balance
between Azerbaijan and Armenia. Russia is reported to have sold the
anti-missile complex for a decent amount to our country. Nevertheless,
I see official structures silent and I won’t be surprised if this
information is dismissed soon. There have been many cases of this
kind. Though, I, personally, do not believe this information.

B.A.
News.Az

From: A. Papazian

Panorama, Armenia
July 31 2010

Abkhazia’s MFA protest seizure by Georgian naval forces

Abkhazia’s Foreign Ministry has issued a protest over the seizure by
Georgian naval forces of a Ukrainian dry cargo ship that called into
Abkhazian territorial waters previously.
`Georgia continues the policy of Abkhazia’s economic isolation by
seizing commercial ships that head for or traverse the territorial
waters of the Republic of Abkhazia. Such actions on the part of
Georgia contravene the international law of the sea and humanitarian
law and are rightfully considered to be acts of aggression,’ the
ministry said.
Georgia’s Coastal Guard on Thursday detained the Akkord dry cargo
carrier in the port of Poti where it had arrived with a consignment of
grain in its holds.
Georgian authorities accused the crew of `illegally crossing the
country’s maritime border on a previous occasion.’
According to the information released by the Coastal Guard, the
twelve-strong crew consists of eleven citizens of Ukraine and a
citizen of Russia.
Armenian Foreign Ministry reported the wheat to be delivered to
Armenia has been unloaded and is in its way to Armenia by vans.

From: A. Papazian