The management of Ukraine’s largest mineral water producer IDS Ukraine is concerned about the announcement by the National Agency for the Search and Management of Assets Derived from Corruption and Other Crimes (ARMA) of a tender for the selection of the manager of corporate rights of the company and doubts that the transfer of the company management to other persons will have a positive impact on its operations.
“The company’s management is concerned about beginning the selection of a manager for the assets of the nation’s largest drinking water producer. After all, since the transfer of corporate rights to ARMA in November 2022, no actions have been taken by the company, which would require a change in the management of IDS Ukraine, including compliance with all restrictions imposed, “- reported on the website of IDS Ukraine on Monday.
At the same time, it is pointed out that the transfer of IDS Ukraine management to other persons is unlikely to have a positive impact on the company’s activities, because previously ARMA has not shown successful cases of working with the assets under its management.
The company reminded that its management effectively managed the business in a super-complicated environment of Russian military invasion in which it retained its market share at the level of 2021, although it reduced its sales by 29%.
The organizational efficiency of the business has remained constant overall over the past 20 years, despite repeated changes in ownership structure throughout. “Confirmation of the latter is unconditional leadership and impeccable business reputation of the company, so we are convinced that there is no need to change the management of the company and its employees”, – was stated in the message.
The management of IDS Ukraine hopes that “the government is interested in preserving Ukraine’s largest water producer and will not allow changes in the management structure, which proved its efficiency in the past and in the current difficult conditions,” reads the press release.
IDS Ukraine stressed that it continued to produce drinking water and promote further development of the category of non-alcoholic beverages in Ukraine. Thus, in 2022 the production of non-carbonated water “Myrhorodska Lahidna” was resumed, in 2023 the production of energy drink “Wola” was launched, the first batch of 40 thousand cans was distributed among the defenders of Ukraine who are on the frontline.
Also, according to the company, IDS Ukraine remained the biggest taxpayer in the industry, transferring 699 million hryvnias to the budgets of all levels last year, even taking into account temporary occupation of one of its enterprises in Hola Prystan in Kherson region.
The press release reminds that within the framework of cooperation with 194 foundations and volunteer organizations, the mineral water producer in 2022 provided charitable assistance to the amount of over UAH 100 million, including free product to the needs of the military, hospitals, displaced persons and de-occupied territories in the amount of over UAH 67 million. Moreover, in January 2023 alone the company delivered 120 thousand liters of drinking water to the de-occupied Kherson.
At the moment, IDS Ukraine provides 3 thousand Ukrainians with work, as well as continues to pay all mobilized employees – their total amount in 2022 reached 18.7 million UAH.
As earlier reported, the general director of IDS Ukraine Marko Tkachuk said in reply to Interfax-Ukraine news agency inquiry that the transfer of corporate rights of the company totaling more than UAH 10 billion to ARMA will not affect the economic activities of the group.
He reminded that the decision about the transfer of corporate rights of the sanctioned IDS shareholders with Russian citizenship to ARMA was made by Kiev Shevchenko District Court on November 9 and 11, 2022.
On November 23, the Bureau of Economic Security of Ukraine (BES) reported that the corporate rights of the Russian shareholders of IDS Ukraine were arrested to prevent them from taking the assets of seven drinking water production and sales companies out of Ukraine. According to the BEB, these enterprises are actually owned by them through a non-resident offshore company under their control.
IDS Ukraine is a Ukrainian group of companies founded in 1996, the largest national producer of bottled water. The holding includes Morshynsky mineral water plant “Oskar”, “Mirgorod mineral water plant”, a distribution company “IDS” and water delivery operator “IDS Aqua Service”.
GK owns trade marks “Morshynska”, “Mirgorodskaya”, “Alaska” and “Aqua Life”.
According to the rating of the 100 most expensive Ukrainian brands, compiled by the publication “NV” and MPP Consulting company in 2021, the market value of “Morshynska” brand of IDS Group Ukraine holding was $ 533 million. The total amount of capital investment over the past five years amounted to 2.3 billion UAH.
