Against all odds, Ukrainian businesses are not just surviving, but thriving amidst the ongoing war. Yuriy Sorochynskyi, the CEO of Nemiroff vodka, a leading Ukrainian spirits exporter, paints a picture of resilience and adaptation. Despite facing relentless challenges, including missile strikes on its shipments, the company continues to supply major retailers like Tesco and Sainsbury's. This determination showcases the spirit of Ukrainian businesses, who are refusing to yield to adversity.
Sorochynskyi's perspective is clear: "This is now business as usual." This statement highlights the extraordinary measures being taken to maintain operations. The company has navigated the harsh realities of war for almost four years, with one of their shipping containers, holding 17,000 bottles, destroyed by bombing at the Ukrainian port of Odesa.
But here's where it gets controversial... The war has inadvertently created opportunities. With Russian vodkas removed from most European supermarket shelves in solidarity with Ukraine, Nemiroff has seen remarkable growth. In the UK, sales surged by 24% last year, reaching £6.25 million, making it one of the fastest-growing premium vodka brands. This success is not just financial; it's a testament to the brand's adaptability and strategic partnerships, including sponsorships with Ukrainian boxing champion Oleksandr Usyk and collaborations with Premier League football clubs like Aston Villa, Fulham, West Ham, and Everton. Nemiroff is now available in major retailers such as Tesco, Sainsbury’s, Waitrose, and the Co-op, and has even returned to the duty-free market at Heathrow and Gatwick.
Before the war, Nemiroff's global sales were around 10 million cases in 2010, but after exiting the Russian and Belarusian markets, sales dropped to 2.4 million cases in 2022. However, with increased exports to the West and sustained demand within Ukraine, global sales have partially recovered to 4.4 million cases this year.
Sorochynskyi emphasized that the company immediately ceased sales in Russia following the invasion, despite it being one of their largest markets where products were produced under license.
To keep production running, Nemiroff has implemented several innovative measures. These include investing in a gas generator to maintain operations during power outages, a common occurrence due to attacks on Ukraine's power infrastructure. They also provided space for their bottle top supplier, an Italian company with a subsidiary in Sumi, near the Russian border, which was directly hit by a missile in August of last year.
Furthermore, Nemiroff is providing bottling facilities for competitors, showcasing the collaborative spirit among Ukrainian businesses. "There are a huge number of examples of competitors helping each other out in order to survive," Sorochynskyi stated. They are even considering providing bathing facilities for workers facing difficulties washing at home due to power cuts and shortages, particularly challenging for those living in apartments.
And this is the part most people miss... The distillery and bottling plants of Nemiroff are located in Nemyriv, in the Vinnytsia oblast, where a distillery has existed since 1752. The company is owned by siblings Yakov and Bella Finkelstein, along with Anatoliy Kipish, who have controlled the company since its privatization in the 1990s.
With ports under attack, Nemiroff has had to reroute shipments, relying heavily on trucks. Before 2022, sea containers were the primary mode of transport, but this was halted when the Black Sea was blocked. Finding an alternative took four months. The Ukrainian government, with EU assistance, is also enhancing railway infrastructure to facilitate freight routes. New railway lines with the European standard gauge will streamline exports by train. A track to the borders with Hungary and Slovakia opened in September, and one to Poland is set to open in 2027. Furthermore, facilities to transport goods to Romania's Black Sea ports are being expanded.
Initially, production was halted for about a month at the war's onset, and exports were delayed due to overloaded borders with refugees and military equipment movement.
What do you think about the resilience of Ukrainian businesses? Do you believe that international support is crucial for their continued success? Share your thoughts in the comments below!
