ArmSweet is a popular confectionery brand created in 2008 by the Shant Plus company established in 1995. The products are affordable even for the lowest income families in Armenia.
To cut costs and become even more efficient from an operational perspective, the management decided to invest in new Spanish chocolate glazing equipment and a German air compressing system, which would increase the company’s energy efficiency. The project team performed an analysis of the investment, primarily in terms of the potential for energy savings, and determined the financial and technical parameters.
The US$107,000 investment allowed ArmSweet to reduce the annual energy consumption for the glazing and air compressor equipment by 71% and 52%, respectively. This means that the investment will pay for itself from the savings in energy costs in 6 years, turning future cash flows into company income for many years to come. In addition, the new equipment results in fewer production stoppages, thus optimising the production processes.
“In the future, our new investment initiatives will definitely be based on energy-efficiency criteria as well”, says company director Mr. Kostanyan.
This example illustrates how new technologies deliver energy savings and other operational benefits to companies in the FMCG sector. Therefore, it is worthwhile for companies to check potential energy savings when considering investments, as energy-efficiency investments often turn out to be among the most profitable ones.
The EBRD supports the cost-effective financing and implementation of sustainable energy projects by the private sector. Together, the private, residential and public sectors can make a change in energy consumption patterns and contribute to environmental protection.