Business news from Ukraine

Business news from Ukraine

Russian attack destroyed “Khortytsia” distillery in Zaporizhzhia; Global Spirits continues production in Lviv and Odesa

The “Khortytsia” distillery in Zaporizhzhia, one of the key production assets of the international alcohol holding company Global Spirits, was completely destroyed as a result of a Russian attack and cannot be restored, the company’s press office told NV Business on August 28; the news was also reported by Interfax-Ukraine.

According to Global Spirits, the facility was struck four times, after which the fire raged for at least three hours. The company lost approximately 3–4 million bottles of finished products, for which excise taxes had already been paid. Some of the goods were completely burned, while others melted and must be disposed of. The company estimates the average cost of a single bottle at approximately 100 UAH.

Thus, the cost of the destroyed finished products alone could amount to about 300–400 million UAH, not including the cost of production equipment, buildings, infrastructure, and losses resulting from the plant’s shutdown.

The “Khortytsia” plant was built from the ground up and began operations in 2003. Prior to the fire, it employed more than 500 people, and the bottling lines had a capacity of up to 16 bottles per second. In addition to “Khortytsia” vodka, the company produced products under the “Morosha,” “Pervak,” “Medova,” “Pshenichna Sloza,” and Gold Ukraine brands.

This is already the second major blow to Global Spirits’ logistics and production infrastructure in the past month and a half. On the night of July 19, a Russian missile destroyed the company’s main finished goods warehouse in the Kyiv region. At that time, the warehouse facilities and inventory were destroyed, and preliminary damage exceeded 100 million UAH, of which approximately 74 million UAH consisted of previously paid taxes.

Following the loss of its Zaporizhzhia facility, Global Spirits retains its other production sites. The holding company’s official website, under the “Our Plants” section, currently lists the Odessa Cognac Plant and the “Hetman” plant in Lviv. The Lviv facility has six modern Italian production lines and manufactures approximately 160 varieties of vodka.

The Odessa Cognac Plant is one of the oldest enterprises in the industry in Ukraine. Its history dates back to 1863 and is linked to the Shustov dynasty. Global Spirits acquired the facility in 2007. The plant has a full production cycle for brandy and cognac, Europe’s largest distillation facility, and a stock of more than 15,000 barrels of cognac spirits.

In addition to its Ukrainian facilities, the list of production sites on Global Spirits’ corporate website includes the Owensboro Distilling Company in Kentucky, USA, which produces American bourbon, as well as Compañía Tequilera Hacienda La Capilla in the state of Jalisco, Mexico, where tequila is produced.

Global Spirits positions itself as one of Europe’s largest international spirits holding companies. Its products are available in more than 87 countries, its headquarters are located in New York, and its proprietary distribution infrastructure covers 31 U.S. states. The company reports a production capacity of over 300 million bottles per year and more than 5,000 employees.

Its portfolio includes more than 15 alcoholic beverage brands, among them “Khortytsia,” “Morosha,” “Pervak,” Shustoff, Oreanda, San Marino, “Medova,” and others.

Over the years, the “Khortytsia” brand has repeatedly been ranked among the world’s largest vodka brands. As early as 2006, it made the top 10 of the World Millionaires’ Club; in 2015, the IWSR named “Khortytsia” the world’s third-largest vodka brand by sales volume; and in Drinks International’s 2019 ranking, the brand was also among the top three globally.

By the end of 2025, Global Spirits had strengthened its position in the global vodka market. In The Spirits Business’s The Brand Champions 2026 ranking, published in June, “Khortytsia” took third place among the world’s best-selling vodka brands with a volume of 11.7 million nine-liter cases, trailing only Smirnoff and Absolut. Another Global Spirits brand—“Morosha”—took fourth place with 11.2 million cases and was named the 2026 Vodka Brand Champion.

In addition, Global Spirits’ “Pshenichna Slioza” vodka nearly tripled its sales in 2025—to 6.1 million nine-liter cases—and entered the global top 10 for the first time, taking eighth place.

Thus, the destruction of the Zaporizhzhia plant affected not only a major Ukrainian enterprise but also the production base of the holding company, whose brands are among the global leaders in the vodka market. At the same time, the presence of facilities in Lviv, Odesa, and outside Ukraine allows Global Spirits to redistribute part of its production, although the company has not yet disclosed exactly where the volume previously produced by the “Khortytsia” plant will be compensated for.

According to NV Business, citing YouControl, Global Spirits Group LLC’s revenue in 2025 fell by 54.3% to 1.4 billion UAH; however, the company moved out of a loss of 235.3 million UAH and posted a net profit of 57 million UAH.

 

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SBU has accused Yevhen Chernyak of financing armed aggression of Russian Federation

Law enforcers have reported the suspicion of Yevhen Chernyak, an entrepreneur and owner of one of Ukraine’s largest alcoholic holdings, as well as six top managers of his companies. They are suspected of financing Russia’s armed aggression, the Security Service of Ukraine said.
“The security service has collected the evidence base on the owner of one of the largest alcoholic holdings of Ukraine Evgeny Chernyak, who is suspected of financing armed aggression rf. According to the investigation, despite the full-scale invasion, his companies continued to do business with the aggressor country,” the SBU said in a statement on its Telegram channel on Friday night.
Reportedly, during 2022 only in the form of payment of taxes and fees controlled by Chernyak companies transferred to the budget of the Russian Federation about 6 billion in the hryvnia equivalent. The investigation documented that the enterprises of the defendant, located in four countries of Central Asia and the South Caucasus, purchased industrial quantities of alcohol and other related products in Russia. During searches in the office premises of the holding in Ukraine, documents and other physical evidence of illegal activities in favor of the aggressor country were found.
“Based on the collected evidence, the investigators of the security service reported on suspicion Chernyak and 6 other top managers of his companies on part 2 of article 28, article 111-2 of the Criminal code of Ukraine (aiding the state-aggressor, committed by prior conspiracy by a group of persons)”, – informs the SBU.
Reportedly, the issue of seizure of their private and corporate property for transfer to the ARMA management is now being decided. The investigation was conducted under the procedural guidance of the Kyiv regional Prosecutor’s office.
According to open sources, Chernyak, the founder of the Khortytsa brand, is the head of the supervisory board of the Global Spirits alcohol holding company.

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OWNER OF GLOBAL SPIRITS ALCOHOL HOLDING READY TO PRODUCE DISINFECTORS FREE OF CHARGE

The owner of Global Spirits alcohol holding, Yevhen Cherniak, is ready to produce spirit disinfectors and sanitizers free of charge at the holding’s facilities.
“We are ready at our facilities, re-profiling them, to produce spirit sanitizers and disinfectors for medical institutions free of charge,” he wrote on his Facebook page.
At the same time, Cherniak said that this requires permits from the ministry.
“This project is non-profit, we take all the costs of production, only raw materials and permits are from the monopolist [Ukrspyrt state-owned enterprise],” the owner of Global Spirits said.
In response to this initiative of the businessman, Deputy Minister of Economic Development, Trade and Agriculture of Ukraine Taras Vysotsky said that in order to implement this initiative, it is necessary to amend the Tax Code.
“These changes have already been worked out and are awaiting adoption at the next extraordinary plenary session,” he wrote on his Facebook page.
Vysotsky said that Ukrspyrt is also ready to instantly switch to the production of disinfectants immediately after the relevant amendments to the law have been introduced.
In turn, Acting Director of Ukrspyrt Serhiy Bleskun supported the idea of the owner of Global Spirits and proposed a plan for its implementation.
“During application, it may be the following solution: to determine the amount of spirit (Ukrspyrt will provide almost any), to remove the excise tax from the volume by the decision of the Verkhovna Rada, to sell it at distilleries without excise (including our one), distilleries dispense spirit or products containing spirit as agreed with the Ministry of Health, distilleries deliver through their own distribution within 24 hours to those in need of this product anywhere in Ukraine,” Bleskun wrote in the comments on the businessman’s post in Facebook.

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