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.
Kormotech Group aims to enter the top 20 chains in each of its priority markets and increase the share of online sales to 15% in the next three years.
These plans were announced by Yuriy Bykoriz, Managing Director of Kormotech’s Central and Eastern Europe region, in an interview withInterfax Ukraine.
“We want to have (the share of e-commerce) at least 15% by 2028 in the countries of Central and Eastern Europe. We see a resource for rapid growth because the share of sales in CEE countries via the Internet is growing and e-commerce is showing higher growth rates than other channels,” Bykoriz emphasized.
He said that there are separate teams in the commercial structure in Europe – one responsible for the development of supermarket chains and one responsible for the development of online sales.
“Currently, the direction of online sales is being developed by Stefan Roche, a German, whom we chose for this position because of his experience, from the largest European pet store chain, where he developed e-commerce. Now he is working with us and we are already present in key markets. For example, in Poland, we are on Allegro, in Romania – on eMag, and our brands are also represented on Amazon. Over the next three years, our goal is to enter the top 20 networks in each of the priority markets,” said Bykoriz.
The peak period of online sales is the sales period.
“November, the so-called Black Friday, is the peak. Interestingly, these are different dates in Europe. For example, in Romania, these promotions take place in early November, while in Poland and the Baltic states they are closer to the end of November. Therefore, in general, November in Europe brings us revenues of up to EUR 200 thousand, and the figure is growing,” he said.
Kormotech is a global family-owned company with Ukrainian roots that has been producing high-quality food for cats and dogs under the Optimeal, Delickcious, Club 4 Paws, Woof! My Love. The company has production facilities in Ukraine and the EU. The product range includes more than 650 items. Kormotech is a leader in Ukraine, one of the TOP-50 global pet food producers and TOP-20 most dynamic pet food brands. Kormotech sells products of its own brands and its partners’ own brands to 46 countries.
The Kormotech Group of companies ended 2024 with $162.7 million in turnover, which is 6.5% more than in 2023. In total, last year the group of companies sold 83 thousand tons of dry and wet diets for cats and dogs, which is almost 7.5% more than in 2023.
Kormotech Group aims to generate more than half of its sales in foreign markets and reach a revenue of EUR 500 million by 2028.
These plans were announced by Yuriy Bykoriz, Managing Director of Kormotech’s Central and Eastern Europe region, in an interview withInterfax Ukraine.
“The Kormotech Group of companies finished 2024 with $162.7 million in turnover, which is 6.5% more than in 2023. Last year, we sold a total of 83 thousand tons of dry and wet diets for cats and dogs, which is almost 7.5% more than in 2023. In terms of total volume for the next five years, we want to grow by an average of about 30-35% per year to achieve our ambition of half a billion euros in revenue in 2028,” Bykoriz said.
At the end of 2024, the ratio in tons of products was 28% export / 72% domestic market.
According to Bykoriz, in the coming years, the growth rate abroad should be significantly higher than in Ukraine.
“By 2028, we want to have more than half of our volumes in foreign markets. We also have a super ambition to change the ratio and have two-thirds abroad and one-third in Ukraine,” he said.
According to Bikoriz, the focus of the coming years is on the markets of Central and Eastern Europe (CEE), primarily Romania, Bulgaria, the Baltic States, Poland and Greece.
The development strategy of Kormotech, a leading Ukrainian pet food manufacturer, includes the use of green energy, and the company aims to provide up to 15% of its own generation by 2027, Kormotech’s Chief Operating Officer Igor Paranyak said in an interview with Interfax-Ukraine.
“Our strategy includes steps towards the use of green energy. At the moment, we have already implemented a project to install a 630 kW solar station at the first factory in Lithuania. At the new factory (Kėdainiai, Lithuania), we also plan to install solar stations on the roof of the factory; given the rather large area, almost 17 thousand square meters, it will be a large SPP. It is not part of this (EBRD loan – IF-U) project, we will implement it separately, but we plan to have 15% of our own electricity generation by 2027,” Paraniak said.
As reported, Kormotech has started construction of a new wet animal feed plant in Lithuania, in which it is investing EUR 60 million, of which EUR 40 million was provided by the EBRD. The planned capacity of the new plant is 40 thousand tons, and 200 jobs will be created. The first phase of the plant is scheduled to be launched in the second quarter of 2026, and all four phases by the end of 2028.
Kormotech is a global family-owned company with Ukrainian roots that has been producing high-quality food for cats and dogs under the Optimeal, Delickcious, Club 4 Paws, Woof, Meow! My Love. The company has production facilities in Ukraine and the EU. The product range includes more than 650 items. Kormotech is a leader in Ukraine, one of the TOP-50 global pet food producers and TOP-20 most dynamic pet food brands. Kormotech sells products of its own brands and its partners’ own brands to 46 countries.
The Kormotech Group of companies ended 2024 with $162.7 million in turnover, which is 6.5% more than in 2023. In total, last year the group of companies sold 83 thousand tons of dry and wet diets for cats and dogs, which is almost 7.5% more than in 2023.
Leading Ukrainian pet food manufacturer Kormotech has started construction of a new plant in Lithuania, in which it will invest EUR60 million, of which EUR40 million is provided by the European Bank for Reconstruction and Development (EBRD), according to Vitaliy Koval, Minister of Agrarian Policy and Food.
“I took part in the ceremony of laying the capsule for the expansion of the Kormotech plant. This is the largest Ukrainian producer of animal feed, which not only conquers the European market but also continues to scale thanks to its powerful entrepreneurial energy. Today, it is important for Ukrainian business to develop its presence in European markets without losing momentum,” he wrote on Telegram.
According to the minister, Kormotech is expanding its existing facilities in Lithuania, where it will create 200 new jobs to complement the team of 170 Ukrainian and Lithuanian specialists and the development of related industries. In addition, the company’s products in this country will have some Ukrainian components.
“One of our priorities in the Ministry of Agrarian Policy is to open new markets and expand existing ones. I am confident that Kormotech’s production facilities will enable other Ukrainian companies to enter the European market or increase their presence there,” Koval said and thanked the Lithuanian partners for supporting Ukrainian entrepreneurs who are becoming part of the European economy.
Kormotech is a global family-owned company with Ukrainian roots that has been producing cat and dog food under the Optimeal, Club 4 Paws, Woof! and Meow! brands since 2003. The company has production facilities in Ukraine and the EU, with a product range of over 650 items. Its focus on exports and geographical diversification helps it withstand the impact of Russia’s war against Ukraine.
In 2023, Kormotech’s turnover increased by 22.5% to $152 million from $124 million in 2022. The ratio of sales abroad and in Ukraine in tons is now 31% to 69%, respectively (in 2022 it was 28% to 72% in Ukraine).
Kormotech brands grew most dynamically in the markets of Romania (+35%), Poland (+11%) and Moldova (+11%).
Kormotech is a leader in Ukraine, one of the world’s top 50 pet food producers and one of the top 21 most dynamic pet food brands. The ultimate beneficiaries of Kormotech are Olena and Rostyslav Vovk.
Sister and brother Olena and Rostyslav Vovk created an advisory board for their family business, the biotechnology group Enzym Group and the cat and dog food manufacturer Kormotech, in 2024 and intend to transform it into a full-fledged supervisory board, Olena Vovk said.
“An advisory board is already an element of pure corporate governance. As of now, it is an advisory board that follows all the principles of a supervisory board. This is a transitional stage that should be completed after one term – formally moving from an advisory board to a supervisory board,” she said at the VII International Corporate Directors Forum organized in Kyiv last week by the Corporate Governance Professional Association (CGPA).
Vovk clarified that the advisory board began active work at the beginning of this year, and she and her brother had been preparing and assembling it for two years.
The business co-owner noted that the board has three main tasks, the first of which is the development of both businesses.
“Both businesses are developing in their own way and require certain expertise, which my brother and I already understand that we do not have and our management teams do not have either. It is better to get this expertise from the market, from experienced independent directors,” she explained.
Vovk emphasized that Enzyme and Kormotech are very active in international markets, so independent directors should be people with experience in these markets, and ideally, with an understanding of the Ukrainian context. For example, she clarified, Enzym exports 55-60% of its products.
“In addition, each of them has their own functional expertise, which is very necessary for us as owners, and also necessary for our teams, i.e. they play a certain role of coaching, an outside view of the areas that we need to pump up, or improve, or even open,” added the co-owner of the company, who oversees Enzym’s business, handing over the CEO position to former COO Andriy Tsehelyk, while her brother heads the Kormotech business.
At the same time, she noted that the advisory board does not develop a strategy for the business, but rather coordinates it and helps management teams improve it.
Vovk said that another task of the advisory board is to ensure business security, as both the main business units – Enzyme and Kormotech – are very ambitious, so it is necessary to balance the investment cycles of each business, because “there is only one pocket.”
The third task of the advisory board is to help build professional corporate governance so that future generations of the family can act as responsible shareholders. According to Ms. Vovk, the chairman of the board is a representative of a large Finnish family company with extensive experience in transferring business between different generations.
In addition, she said that the general governance scheme of Enzyme and Kormotech also includes a shareholders’ agreement signed between the owners, a family council and executive boards at each business unit, which have also undergone significant changes recently, including the creation of committees to better respond to market changes and implement development plans.
Vovk recalled that the business was originally founded by their father, Orest Vovk, director of the Lviv yeast plant, in 1993, and was taken over by his children Olena and Rostyslav after his death in 2014.
“In fact, we have been in the process of forming a corporate governance system for our family business almost all this time,” Vovk stated.
According to her, they, as shareholders of a family business, delegate some of their rights to their families so that future generations are aware of the responsibility they will have and participate in discussing and resolving business issues.
Vovk clarified that at this stage, she and her brother are active in the business and understand very well what is happening in the operations, and the children do not plan to enter the operations now.
She also emphasized that the family council should also select and approve the head of the advisory board.
As reported, in 2023, Kormotech’s turnover increased by 22.5% to $152 million from $124 million in 2022. The share of exports increased to 31% from 28% a year earlier.
In 2023, Enzym’s revenue increased by 32.3% to UAH 1 billion 838.15 million, while operating income increased almost 2.3 times to UAH 385.99 million.
