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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Founders of 2KOLYORY embroidered clothing brand closing their business

According to Interfax-Ukraine, the founders of the 2KOLYORY embroidered clothing brand—whose production facilities have repeatedly suffered damage as a result of enemy strikes—have decided to close their business, as reported on the brand’s Facebook page.

“We are closing 2KOLYORY. For over 10 years, we have been building 2KOLYORY—here in Ukraine. We sewed embroidered shirts, shared a part of our culture with the world, and worked with people we love and cherish. The war has changed more than just our lives. It has changed our business. Our production facility has survived three shelling attacks. They left behind damaged walls, windows, doors, utilities, and traces of destruction,” the post reads.

The post notes that 2KOLYORY was a brand of embroidery known in Ukraine, Europe, and America.

“We recovered. We kept working. We looked for opportunities. We fulfilled orders even when it seemed we had no strength left. But the time has come to be honest: we can no longer continue on this path in the format we’ve operated in all these years,” the founders wrote.

They assured that all orders currently in production will be fulfilled in full by the end of September.

“Perhaps this isn’t quite the end. Perhaps this is the end of 2KOLYORY as you knew it, and the beginning of something new,” the post reads.

The brand’s story began in 2015, when husband and wife Igor and Oksana Kovalenko founded their own production facility.

The brand has a store in Kyiv, and its online store offers a wide selection of linen and cotton embroidered clothing for women, men, and children, as well as home textiles.

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Paper and cardboard production in Ukraine fell by 3% over seven months

Paper and cardboard production by major enterprises in Ukraine’s pulp and paper industry in January–July 2026 fell by 2.9–3% compared to the same period in 2025, despite improved performance in July.

This is according to data from the UkrPapir association.

Paper production alone fell by 8.2% over the seven-month period, while cardboard production fell by 1.2%.

Production of corrugated cardboard boxes fell by 1.6%, while wallpaper production decreased by 6.3%.

At the same time, production of toilet paper rolls increased by 7% compared to January–July of last year.

Production of certain types of sanitary and hygiene products grew even faster. Production of 100% cellulose toilet paper rose by approximately 20.4% over the seven-month period, while production of paper towels in rolls increased by 9.5%.

Notebook production also showed positive growth. Over the seven-month period, it increased by 11%.

Meanwhile, the industry’s largest segment—cardboard and packaging materials—already shifted to significant growth in July. Cardboard output for the month increased by 11.2% year-over-year, including a 16% increase in containerboard.

The total monetary value of commercial output by companies in the industry for January–July increased by 19.3% compared to the same period in 2025.

Thus, while physical production volumes of paper and cardboard for the first seven months remain below last year’s levels, the industry’s revenue is growing significantly faster. At the same time, July statistics point to a recovery in the production of cardboard and certain categories of consumer paper products.

Among the largest enterprises providing statistics to the association are the Kyiv Cardboard and Paper Mill, the Trypillya Packaging Plant, the Kokhavyn Paper Mill, “VGP” (TM “Ruta”), “Poninkivska KPF-Ukraine,” and the Lviv-based “Cardboard and Paper Company.”

 

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Aluminum production in Gulf countries fell by 44% in July

Primary aluminum production in the Gulf countries totaled 293,000 metric tons in July, down 44% from the same month in 2025, according to preliminary estimates by the International Aluminum Institute (IAI).

Production volumes continue to remain near their lowest level in more than fifteen years due to the impact of the military conflict in the Middle East on plant operations in the region. Two plants in the Gulf countries, which account for about 9% of global primary aluminum production capacity, were attacked by Iran in late March.

However, production has risen slightly from the local low of 274,000 metric tons recorded in April. In May, production totaled 281,000 metric tons, and in June, 276,000 metric tons, according to revised IAI data.

Emirates Global Aluminium reported in August that the resumption of operations at its Al-Tawil plant (Abu Dhabi) following an emergency shutdown in March is proceeding faster than expected. However, a return to previous production levels may not occur until early 2027 at the earliest. The plant, which has an annual capacity of 1.5 million metric tons, is currently operating at approximately 18% of capacity.

Global primary aluminum production in July fell by 1.7% year-over-year to 6.16 million metric tons. In particular, production in China rose by 2.7% to 3.866 million metric tons. In North America, the figure remained unchanged (330,000 metric tons); in Europe, it rose by 7.5% (to 643,000 metric tons); and in Asia, excluding China, it increased by 2.7% (to 422,000 metric tons).

For a more detailed overview of global aluminum production from 1970 to 2024, watch the video on the Experts Club YouTube channel.

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Paper and Cardboard Production in Ukraine Rose 5.2% in July

In July 2026, Ukrainian pulp and paper companies increased paper and cardboard production by 5.2% compared to July of last year, reaching 55,300 metric tons, according to data from the UkrPapir association.
Compared to June of this year, production rose by 5.3%.

The main driver was cardboard production, which increased by 11.2% year-over-year to 43,560 metric tons. In particular, the output of packaging cardboard, including paper for corrugating, rose by 16% to 36,360 metric tons.
At the same time, paper production in July fell by 12.5% compared to July 2025, to 11,740 metric tons.

The bulk of this was base paper for sanitary and hygiene products—10,620 metric tons, which is 9.2% less than a year earlier. Production of writing and printing paper nearly halved, falling to 64 metric tons.
Production of corrugated cardboard boxes totaled 50.06 million square meters, which is 2.5% less than in July of last year.

Despite mixed trends in individual product categories, the industry continued to grow in monetary terms. The value of commercial output from enterprises that submitted data to the association reached 3.056 billion UAH in July, an increase of 28.8% year-over-year and 3.3% compared to June.
The “UkrPapir” statistics include, in particular, the Kyiv Cardboard and Paper Mill, the Trypillya Packaging Plant, the Kokhavyn Paper Mill, “VGP” (TM “Ruta”), “Poninkivska KPF-Ukraine,” and the Lviv-based “Cardboard and Paper Company.” The association does not publish figures for individual enterprises due to wartime risks.

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Notebook production in Ukraine rose by 35% in July, while toilet paper production rose by nearly 10%

According to Experts.news, Ukrainian companies significantly increased their production of notebooks, toilet paper, and wallpaper in July 2026, according to data from the UkrPapir Association of Pulp and Paper Industry Enterprises.

Notebook production reached 28.36 million units, which is 34.5% more than in July 2025. Compared to June of this year, output increased by a factor of 4.4.

Production of toilet paper rolls rose by 9.8% year-over-year, reaching 52.48 million rolls.

At the same time, production of 100% cellulose toilet paper reached 23.68 million rolls, an increase of nearly 23% compared to July of last year.

The wallpaper market also continued its recovery. In July, Ukrainian companies produced 1.63 million standard pieces of wallpaper, which is 12.8% more than a year earlier and 7.5% more than in June.

In this segment, the association has statistics from the largest manufacturer—the company “Slavyanski Wallpaper—KFTP.”

Production of paper towels in rolls also increased by 1.6% year-over-year—to 5.14 million rolls. At the same time, production of 100% cellulose table napkins fell by more than half—to 1.5 million packs.

Overall, the volume of commercial output by companies in the industry reached 3.06 billion UAH in July, which is 28.8% more than in July 2025.

Thus, in the pulp and paper industry, the most notable growth in July was seen not only in packaging board but also in certain consumer paper products.

Original source: the “UkrPapir” Association.

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