Share of private label among Kormotech sales in Ukraine is less than 5%, 15% in Europe
The share of private labels among Kormotech sales in Ukraine is less than 5%, while in Europe - 15%, the company aims to reduce it to 10% by 2028, said Yuriy Bykoriz, Managing Director for Central and Eastern Europe at Kormotech Group of Companies, in an interview with Interfax Ukraine.
"The priority is our brands. In Ukraine, the share of private label is low, less than 5%. In Central and Eastern Europe, our sales are currently about 15%, the goal for 2028 is to have less than 10%," he said.
As Bykoriz noted, private label is primarily a tool with which a company can reach certain customers or certain supermarket chains.
"Because entering networks such as Kaufland or Biedronka in Poland right away, let's be honest - with a brand unknown to this market, is practically impossible. It is private labels that give the networks the very first opportunity to show how great we work and provide service," said Bykoriz.
As for its own brands, Kormotech is already represented by its own brands in the EU countries in Kaufland, as well as in Romania in Profi, in the Baltic countries in Maxima.
According to the managing director, although the company sets a goal to reduce the share of private brands, it will not give up this tool. "After this five-year plan [after 2028], most likely, we will go to Western Europe. And again the question will arise of how to enter retail chains, so we are not giving up this tool," said Bykoriz.
Kormotech is a global family company with Ukrainian roots. Since 2003, it has been producing high-quality food for cats and dogs under the brands Optimeal, Delickcious, Club 4 Paws, Gav!, Meow! My Love. The company has production facilities in Ukraine and the EU. The assortment includes more than 650 items.
Kormotech is a leader in Ukraine, is among the TOP-50 global producers of pet food and the TOP-20 most dynamic pet food brands. It sells products of its brands and its partners' own brands in 46 countries around the world.
Kormotech ended 2024 with $162.7 million in turnover, which is 6.5% more than in 2023. In total, last year it sold 83,000 tonnes of dry and wet rations for cats and dogs, which in total is almost 7.5% higher than in 2023.
With the participation of CFI, Agence française de développement médias, as part of the Hub Bucharest Project with the support of the French Ministry of Foreign Affairs