In 1899, Russian entrepreneurs Shustovs, descendants of a freed serf who had previously been a serf of General Izmailov in the village of Dedino in the Zarechye district of Ryazan province, acquired the Yerevan cognac factory. This factory was established in the Tiflis bank by the bankrupt first guild merchant Nikolai Tairov. Branches for purchasing grapes were opened in the Ararat valley, which allowed for a reduction in the cost of cognac production, which was made using classic French technology.

By the early 20th century, Shustov cognac became known not only in the Russian Empire but also in Europe. To achieve this, Shustov secretly sent samples of his product to an exhibition in Paris. The jury, consisting of recognized experts, unanimously awarded the grand prize to the product of an unknown winemaker. When it was revealed that he was not French and that the samples had come from Armenia, Nikolai Shustov was exceptionally allowed to write "cognac" on the labels instead of "brandy," as was customary for foreign producers. This right was never granted to anyone else in the history of cognac production.

In 1912, Emperor Nicholas II tasted Shustov cognac and granted it another privilege, the right to be a supplier to the Russian imperial court. After the revolution, Shustov's property was nationalized, and the cognac factory was renamed the "Ararat" trust. However, Shustov's story did not end there: Winston Churchill, being a great fan of Armenian cognac, always ordered "Shustov" cognac, joking about the Soviet government. Every year, he was sent 400 bottles, poured from a special barrel laid down by Nikolai Shustov, but the documents indicated "former Shustov."

In 1953, cognac production was moved to a new enterprise equipped with the most modern equipment of that time. Today, the products are released under the brand "ArArAт," which has become one of the most recognizable symbols of Armenia.