Business news from Ukraine

UKRAINIAN DANONE STARTS EXPORT TO POLAND

Danone in Ukraine has begun exporting yoghurt to Poland with the weekly deliveries of 20 tonnes, the company’s press service has reported. According to the report, Danone exports products for children under the Danonki brand (in Ukraine the Rastishka brand), as well as Activia bifidus yoghurt. The export volume of each product category is 10 tonnes per week.
“In 2018, the company received a request from partners from Poland for the supply of products for children under the Danonki brand. The request has been successfully implemented, therefore Poland became the first country in the European Union to which Ukrainian yoghurt was delivered,” the manufacturer said.
The company also reported on the request for an increase in export volumes. In addition, Danone intends to organize the supply of dairy products to other EU countries.
According to the company, Danone is now also exporting Prostokvashino sour cream and Activia drinking bifidus yoghurt to the United Arab Emirates. According to Danone, the exported products are manufactured at Danone Dnipro plant (Kherson). Danone Group is represented in 120 countries. It owns more than 190 factories, which employ about 102,000 people.

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POLAND’S SHOE STORES CHAIN TO OPEN NEW STORE IN UKRAINE

The Bud House Group, an investment and developing group, has signed a contract to lease 550 square meters in the Liubava shopping and entertainment center in Cherkasy with CCC Ukraine LLC (Lviv), developing a chain of shoe stores of the Polish brand CCC in Ukraine. The press service of Bud House reported on Monday that the decoration of the premises has started. The date of the opening of the store is not specified.
Earlier CCC Ukraine planned to open up to 15 new stores in Ukraine in 2018.
According to the official website of the CCC brand, as of November 22, 2018, the chain in Ukraine includes 10 outlets.
Bud House Group is the developer of the Liubava shopping and entertainment center.

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POLAND AND UKRAINE AGREE ON 160,000 LICENSES FOR TRANSPORTATION BY ROAD IN 2019

Ukraine, Poland have agreed on the preliminary exchange of 160,000 licenses for transportation by road in 2019, Ukraine’s Infrastructure Ministry has reported after a meeting of the Ukrainian-Polish mixed commission for international road haulage held on October 10 and October 11.
“The sides will hold a regular meeting of the mixed commission in the first half of 2019, where a decision will be made to establish the final quota,” the Infrastructure Ministry said on Friday.
In particular, there will be universal licenses for of the categories Euro-1, Euro-2 and Euro-5 – 10,000 each, Euro-3 – 50,000, Euro-4 – 20,000, and transit categories of Euro-3 – 25,000 and Euro-5 – 35,000.
According to the report, Ukraine also agreed to obtain from Poland an additional 10,000 licenses (8,000 transit and 2,000 universal) for this year, which will increase their number to 216,500.
The Infrastructure Ministry said that Poland again insists on reducing the 2019 quota to 130,000. However, this does not meet the needs of Ukrainian haulers. “Our position in relation to this proposal was unambiguous – we do not agree to any reduction of the quota!” Director of the Strategic Development Department of the road market and road transport of the Infrastructure Ministry Viktor Sasin said on Facebook.
The ministry said that the meeting on the quota increase for 2019 will be held after evaluating the effectiveness of the use of already issued licenses.

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LARGE PRODUCER OF HOME AND PERSONAL CARE PRODUCTS FROM UKRAINE STARTS SUPPLIES TO POLAND RETAIL CHAIN

The Biosphere Corporation (Dnipro), a large producer of home and personal care products, has entered the Polish market, signing an agreement on supplies of moist wipes Smile under the license of The Walt Disney Company and Universal with the Biedronka retail chain. “Biosphere Corporation entered the Polish market with a contract with the Biedronka chain. In one of the largest Polish networks, which includes more than 2,800 stores across the country, 15 names of the Smile brand will be presented under the license of The Walt Disney Company and Universal. Thus, the Smile brand was the first in Poland with an official license from the two largest Western studios. In the nearest future the corporation plans to enter other chains of this country,” the press service of the Biosphere Corporation said.
The corporation was also informed about the exclusive license from The Walt Disney Company and Universal, with which it has been cooperating since 2012, for using cartoon characters on the moist wipes Smile on the Polish market.
Biosphere Corporation, which has been operating in Ukraine for over 20 years, is the leader in the production and distribution of home and personal care products in Ukraine and the CIS. Its products are represented on some 20 markets in Europe and Asia. In the product portfolio the company has more than 2,000 items.

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LARGE UKRAINIAN FRUITS AND BERRIES PROCESSOR TO BUILD THIRD PLANT FOR PROCESSING APPLES AND BERRIES IN POLAND

T.B.Fruit, one of the largest processors of fruits and berries in Ukraine, plans in 2019-2020 to start the construction of the third plant for processing apples and berries in Poland with an estimated cost of more than EUR40 million. “We plan to build the third factory in Mazowieckie Voivodeship. We are now at the stage of designing production lines. There is already a ready-made construction project, a building permit has been obtained from state authorities. The planned start of construction is 2019-2020. The third plant will have a capacity of 3,000 tonnes of apples a day with the possibility of increasing up to 4,500 tonnes, and up to 700 tonnes of berries per day,” Director for Production at T.B.Fruit Oleh Mochaliuk told Interfax-Ukraine. Investments in the specified enterprise will roughly amount to more than EUR40 million.
According to Mochaliuk, T.B.Fruit owns two plants in Poland (the first was bought in 2010, the second one in 2012) with a total processing capacity of 3,000 tonnes of apples per day. In addition to apples, strawberry, raspberry, currants, cherry, aronia, red currants, gooseberry are processed at Polish plants. He said juice production and sales in the first half of 2018 decreased by 30-40% compared to the same period in 2017 due to a poor fruit harvest.

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UKRAINE’S FOCUS ESTATE FUND BUYS ONE MORE THIRD SHOPPING CENTER IN POLAND

Focus Estate Fund investment fund (headquartered in Kyiv) has closed a deal on the acquisition of the Galeria Awangarda shopping center with a total area of 7,500 square meters in Bartoszyce (Poland), the company’s press service has said.
“With this investment, the fund increased its portfolio in the medium-sized retail real estate sector in Poland and the Czech Republic to five facilities with a total lease area of more than 34,000 square meters,” Managing Partner of Focus Estate Fund Andriy Kozyn said.
According to the report, the Galeria Awangarda shopping center was opened in April 2016, among its largest tenants are the stores Biedronka, Jysk, KIK, Deichmann, and ABRA.
According to the company, at the time of the deal, the vacancy of premises in the object was about 3%.
The press service said the transaction broker was KYHOS Real Estate s.r.o., the property manager was JLL, while legal support was provided by Czabański Gałuszyński i Partnerzy.
The company plans within two or three years to invest about EUR50 million in the development of medium-sized commercial property projects in Eastern Europe.

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