Kormotech, Ukraine’s largest producer of cat and dog food, is setting up a venture capital fund that will invest in the development of petcare and petfood startups, the company’s press service told Interfax-Ukraine.
The UK-based Kormotech Ventures division will search for relevant startups and invest in innovative areas of the company’s development in international markets.
“We were once innovators when we were the first to produce cat and dog food in Ukraine. It is important for us to maintain these fundamental things – flexibility and openness to new knowledge. We want to preserve and multiply the bold entrepreneurial spirit with which we created Kormotech 20 years ago, and with which we became leaders in Ukraine and became one of the top suppliers in strategic export markets,” said Rostyslav Vovk, CEO and co-owner of Kormotech.
Kormotech Ventures will focus on finding innovative startups that are looking for seed investments in the pet care industry in Europe and the US. The company will also fully manage investment projects as a majority shareholder.
It is specified that the core of Kormotech’s business will remain unchanged – the development of high-quality pet food production and expansion of its presence in the pet food markets in Central and Eastern Europe.
The first investment of Kormotech Ventures was the acquisition of a controlling stake in Rocketo, a Lithuanian startup producing organic dog food by gentle drying at low temperatures.
Rocketo is scaling up its presence in the UK market by developing a multi-channel distribution system. In particular, in addition to direct sales through its own online store, Rocketo has been included in the Future Brands program of the Sainsbury’s retail chain and will present its organic dog treats.
“As a family business, we strive to increase the value of our partners’ products and share our experience in organizing business processes, as well as the potential of our best specialists, which will be involved in the structure of Kormotech Ventures,” added Vovk.
Kormotech LLC is a leading Ukrainian manufacturer of pet food for cats and dogs, ranked 51st in the global pet food ranking and 7th in the ranking of the fastest growing pet food brands. Kormotech sells products of its own and partner brands in 40 countries.
The company’s facilities include two dry and wet food production plants in Lviv region and a plant in Lithuania. The company produces products for cats and dogs under its own brands Optimeal, CLUB 4 PAWS (TM “Meow!” and “Woof!”) and private label. The product range includes more than 650 items.
In 2022, Kormotech’s turnover increased by 12% to $124 million from $110 million in 2021. The goal for 2023 is to reach a turnover of $150 million and increase the export/Ukraine ratio to 30%/70% from 24%/76% previously due to the synchronized growth of markets, the statement said.
The ultimate beneficiaries of Kormotech are Olena and Rostyslav Vovk.
