Within the face of Russia’s ongoing invasion of Ukraine and the ensuing financial and logistics challenges for the Ukrainian pet meals trade, native producer Kormotech is finishing up funding and international growth plans for 2023 and past. The pet meals maker is pursuing an funding program value €14 million (US$15.5 million) to boost its manufacturing capacities and strengthen its foothold in quite a few international markets.
The struggle has boosted the Ukrainian firm’s efforts to bolster its worldwide presence. This yr, Kormotech expanded its gross sales to 39 nations, up from 19 nations 5 years in the past, the enterprise mentioned in a press release.
“Exports are anticipated to develop from 22% of our whole gross sales in 2022 to 30% this yr, and between 60% and 70% by 2028,” the assertion learn. “In 2023, Kormotech will give attention to the U.S., Latvia, Lithuania, Romania and Moldova, and we intend to go deeper into these markets to realize a better market share.”
One of Kormotech’s targets for 2023 is to succeed in annual revenues of US$150 million, up from US$124 million final yr. The pet meals enterprise additionally goals to modernize its Ukrainian moist plant. Along with the firm’s ongoing undertaking to broaden its dry pet meals manufacturing facility in its home market, the two investments are value about €8.5 million (US$9.5 million).
Pet meals manufacturing capacities on the rise
Kormotech is headquartered in Lviv, in Ukraine’s western half, the place it additionally produces pet meals. Because the armed battle continues to impression the corporate’s operations in Ukraine, Kormotech is diversifying its capacities by growing services in neighboring nations similar to Lithuania and Poland.
In 2023, the agency’s Lithuanian manufacturing capability rose by about 4,000 tons. Launched in August 2022, the Polish facility shops two months’ value of Kormotech’s pet meals inventory.
“On the Lithuanian plant, the corporate built-in a brand new expertise for the manufacturing of moist feed for the premium and tremendous premium segments,” in accordance to Kormotech. “Investments within the Lithuanian plant within the years 2022-2023 will whole €5.4 million (US$6.1 million).”
Owing to the continued investments, the moist meals manufacturing capability of the corporate’s Lithuanian manufacturing facility will enhance by 25%, and the moist meals manufacturing capability of Kormotech’s Ukrainian plant will rise by 65%, the corporate mentioned.
New pet meals product growth beneath approach
Within the meantime, Rostyslav Vovk, CEO and co-owner of the Ukrainian pet meals maker, informed Petfoodindustry.com that Kormotech can also be engaged on including new merchandise to its portfolio, aiming to introduce them within the first half of 2024. “We’re getting ready a number of novelties for the market earlier than the Interzoo present which can happen in Could 2024. We plan to current a brand new model and a number of other strains for current ones,” he mentioned.
Requested in regards to the firm’s most profitable merchandise in its international markets, Vovk mentioned that Kormotech’s premium Membership 4 Paws model is its hottest pet meals product in Japanese and Central Europe, and could be thought-about “the driving drive behind the corporate’s presence within the area. The corporate will give attention to selling Membership 4 Paws merchandise over the subsequent 5 years.
“The super-premium class model, Optimeal, is reporting a rising demand in Western Europe and the U.S., and we see that clients actually like it,” Vovk continued. “Asian nations are additionally displaying sturdy curiosity on this model.”
Initiatives to assist Ukrainian pets
Kormotech can also be growing ties with numerous charities from the U.S., Lithuania and different nations to ship pet meals to these in want beneath its flagship Save Pets of Ukraine initiative. A group of volunteers assembled beneath the corporate’s initiative works to ship pet meals to feed homeless pets and ship pet meals to those that can’t afford to purchase it. Along with meals for canine and cats, the initiative additionally helps provide of collars, cages, tick repellents and different merchandise to Ukraine’s pets.
One other program developed by Kormotech, Undertake Pets of Ukraine, is a shelter patronage initiative to encourage foreigners to undertake Ukrainian pets who’ve suffered because of the ongoing struggle.
