The Ukrainian group of companies Kormotech, a manufacturer of dog and cat food, expects revenue of approximately €200 million by the end of 2025, with exports currently accounting for 30% of sales, said co-owner and CEO Rostislav Vovk at the Forbes Ukraina Exporters Summit.
“We are currently working very hard on this (increasing the export share – IF-U). I am confident that by 2028–2029, we will increase our export sales to at least 45% of our turnover and continue to grow from there. In other words, for us, internationalization means that the majority of our revenue comes from foreign markets,” Vovk noted.
According to the CEO, the company is currently actively expanding its presence in the U.S. Last year, revenue in the U.S. market was approximately $4 million, but the plan for this year calls for growth to over $10 million. The products are already available on Amazon and the specialty retailer Chewy, as well as in 150 stores in the New York area and neighboring states. Vovk added that “this is precisely why we are in the United States—to understand which trends will reach Europe in a few years.”
Assessing competitiveness, the CEO noted that Europe currently lags behind the U.S. in innovation by five to seven years. For Ukrainian businesses, expansion is a way to “gain a foothold” to ensure the company’s stability regardless of the domestic situation in the country, energy supply issues, or veterinary risks.
In Europe, Kormotech’s strategy is focused on 15 countries in Central and Eastern Europe. The priority markets are Romania, Bulgaria, and the Baltic states. In particular, in Lithuania—which the company considers its “second home market” due to the presence of its own factory there—the manufacturer already controls 10% of the market.
Vovk named Bulgaria and Romania as the most promising markets in the region, as they are growing rapidly and the company’s products are ideally suited to the needs of local customers. According to him, experience in Ukraine allows the company to anticipate competitors’ moves and the stages of development in these markets.
The company’s CEO emphasized that expansion into new markets requires long-term investment—five to eight years of operating without profit to successfully compete with multinational giants. The manufacturer continues to invest in diversification and uses its own profits for development in EU countries.
In terms of capital, Kormotech is exclusively considering an acquisition strategy and is currently seeking suitable targets. The expansion is financed through internal funds and credit lines from the EBRD and Raiffeisen Bank. At the same time, the company remains a family business: according to the “family constitution,” bringing in outside investors is only possible for a minority stake, with the owners retaining the mandatory right to buy it back in the future.
“We are building a century-old company, so we cannot afford to ‘shoot in all directions at once.’ Our path is to establish corporate governance where shareholders have systematic control, and the business develops as a large family structure, following the example of Mars or Walmart. (…) My main advice to my past self is not to expect very quick victories, not to enter Poland right away due to the extremely fierce competition in the discount market, and not to be afraid of mistakes, because without them it would be impossible to achieve what we have now,” Vovk concluded.
Kormotech is an international family-owned company with Ukrainian roots, founded in 2003. It produces cat and dog food under the brands Optimeal, Club 4 Paws, Delickcious, Meow!, Woof!, and My Love. It has production facilities in Ukraine and the EU, and its product range includes over 650 items. The company’s products are available in 55 countries worldwide, both under its own brands and under the brands of partner companies.
According to published information, the company’s strategic goal is to become one of the top 30 global pet food manufacturers by 2029, with annual revenue of EUR500 million, of which EUR300 million is planned to come from European markets.
