IDS Ukraine, the largest player in the country’s water market, increased sales of traditional products by 8.4% in March-July this year compared to the same period last year, the company told Interfax-Ukraine.
“Comparing this year’s and last year’s figures, we see an average monthly growth of 8.4% in March-July 2023 compared to the same period in 2022 – and this is without taking into account sales of our new products,” IDS Ukraine said without specifying absolute figures.
According to the company, it maintains its leadership in the market, where its share was about 40% before the war.
IDS Ukraine said it has recently increased its innovation activity and launched new products in related categories: mineral water energy drink Volya and Morshynska lemonade in three flavors: apple, orange and peach, and grapefruit, but did not specify their sales volumes.
As for exports, the company said that since the beginning of the war, it has focused on the domestic market, meeting humanitarian needs and creating reserves.
“Currently, we are only making test deliveries and analyzing sales, and a clear export strategy is still under development,” IDS Ukraine said.
Emphasizing the influence of brand reputation on consumer preferences, the company also announces charitable assistance worth UAH 230 million since the beginning of the war, cooperation with more than 200 charitable foundations and donations of products worth more than UAH 160 million.
IDS Ukraine is a Ukrainian group of companies founded in 1996, the largest national producer of bottled water. The holding includes Morshyn Mineral Water Plant Oscar, Myrhorod Mineral Water Plant, IDS distribution company and IDS Aqua Service, a water delivery operator.
The Group owns the Morshynska, Myrhorodska, Alaska and Aqua Life trademarks.
The Board of Directors of IDS Ukraine Group, which produces mineral water under Morshynska and Mirgorodska brands, decided not to accrue or pay dividends for 2022 and decided to direct all available funds to charitable purposes, the holding said in a press release on Wednesday.
“The company’s management and non-sanctioned shareholders fully share the state’s just desire to protect the economy and the country. That is why, back at the beginning of the full-scale invasion, it was decided to forgo dividends in 2022 and direct all available funds to charity,” the document states.
According to the press release, 100% of the corporate rights of the group’s shareholders have now been seized and transferred to the National Agency for the Detection, Search and Management of Assets Derived from Corruption and Other Crimes (ARMA) because of the sanctions imposed on its shareholders with Russian citizenship. At the same time, according to IDS Ukraine, more than 50% of the holding’s securities belong to persons to whom sanctions were not applied – citizens of Great Britain, Georgia and Ukraine.
The press release notes that IDS Ukraine provided more than UAH 100 mln of charitable aid in 2022; in particular, it transferred water in excess of UAH 67 mln for the needs of military personnel, the wounded, displaced persons and residents of de-occupied territories. In addition, the holding continues to pay salaries for a hundred and fifty of its mobilized employees, as well as buying for them ammunition and equipment.
“For their part, the non-sanctioned shareholders of the company, even though the state grossly violates their property rights, consider the provision of charitable assistance in 2023 as one of the priority areas of the companies. Only in January 2023, 120 thousand liters of water were transferred to Kherson, and the total amount of transferred products already this year is about 500 thousand liters,” the mineral water producer summarized in a press release.
As earlier reported, on February 10 ARMA announced a competition for the selection of a manager for arrested assets of IDS Ukraine, which produces and sells mineral water under brands Morshinskaya, Mirgorodskaya and Borjomi.
Earlier, Marko Tkachuk, the general director of IDS Ukraine, said in response to Interfax-Ukraine news agency inquiry that the transfer of corporate rights of the company worth more than UAH 10 billion to ARMA will not affect the economic activities of the group. He also 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 last year, the Bureau of Economic Security of Ukraine (BES) reported about the arrest of corporate rights of the Russian shareholders of the IDS Ukraine in order to avoid their withdrawal from Ukraine of the assets of seven enterprises for the production and sale of drinking water. 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”, the distribution company “IDS” and water delivery operator “IDS Aqua Service”.
GK owns trade marks Morshinskaya, Mirgorodskaya, Alaska and Aqua Life.
The National Agency for Detection, Search and Management of Assets Derived from Corruption and Other Crimes (ARMA) has finished accepting applications from candidates for the position of asset manager of mineral water producers and sellers, in particular, Morshynska produced by IDS Ukraine holding.
According to the agency’s website on Friday, six companies applied to ARMA. Their representatives intended to participate in the competitive selection of a manager for the seized assets of producers and sellers of mineral waters.
The agency specified that it would consider the proposals of potential managers and would decide on the results of the selection after a thorough examination of the documents submitted by them to determine whether they meet the requirements of the tender. Information on the outcome of the tender will be made public immediately after the decision.
The agency reminded that on February 9 it announced a competition in which the participants were proposed to manage the corporate rights of the company-producer of soft drinks and mineral water in the form of 100% share in the authorized capital of this legal entity in the amount of 8,8 million UAH. Furthermore ARMA is looking for the manager of corporate rights of a foreign company, namely the shares in a legal entity specializing in the wholesale of food, beverages and tobacco products, with a total nominal value of UAH 4.5 mln.
As reported, on February 10 ARMA announced a competition for the selection of a manager for arrested assets of IDS Ukraine, which produces and sells mineral water under brands Morshynska, Mirgorodska and Borjomi.
Earlier, Marko Tkachuk, the general director of IDS Ukraine, said in response to Interfax-Ukraine news agency inquiry that the transfer of corporate rights of the company worth more than UAH 10 billion to ARMA will not affect the economic activities of the group. He also 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 last year, the Bureau of Economic Security of Ukraine (BES) reported about the arrest of corporate rights of the Russian shareholders of IDS Ukraine in order to avoid their withdrawal from Ukraine of the assets of seven enterprises for the production and sale of drinking water. 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”, the distribution company “IDS” and water delivery operator “IDS Aqua Service”.
GK owns trade marks Morshinskaya, Mirgorodskaya, Alaska and Aqua Life.
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.
