Suziria opens new warehouse in Kyiv amid sustained performance of local industry

Ukrainian pet product distributor Suziria Distribution invested €1 million ($1.05M) into an 8,000-square-meter warehouse in Kolonshchyna (Kyiv), with the plan to organize fast and convenient logistics for pet product supplies in the country.

The new facility, which is expected to create 170 jobs, will serve the Kharkiv and Lviv regions as a distribution center. At the same time, it will also supply products to the central and southern regions of the country. 

“The opening of another warehouse in Central Ukraine not only strengthens the stability of the distribution system but also speeds up the delivery of products from 29 international partners and Suziria Brands to meet the needs of Suziria Distribution’s customer network of more than 5,000 retail outlets,” says Sergii Demchenko, Director of Suziria Distribution.

The company says the warehouse is strategically located and stocks non-food, food products, and veterinary drugs. 

During the war in Ukraine, Suziria Group opened 2 production facilities in Kalush—in the Ivano-Frankivsk region—and 3 new offices in Dnipro, Lviv and Kyiv. 

Earlier in January, GlobalPETS reported that the Ukrainian firm was considering expanding its distribution hub in the capital of Kyiv to bolster its national distribution.

An update on the pet industry in Ukraine

Despite the impact of the conflict, Suziria Group has noted a 3.1% increase in animal food sales in the country from 2022 to 2023. During the same period, the company also maintained sales volume, which suggests market resilience.

Suziria Group told GlobalPETS that there are currently 4 active trends in the region:

• Market consolidation

“Despite the fact that more than 300 brands sell pet food on the market, the top 10 brands account for almost two-thirds (62%) of the market. It’s a clear indication of consolidation of the market,” a spokesperson states.

4 major manufacturers (Purina, Kormotech, Royal Canin, and Mars) account for 70% of the market share in 2023, compared to 67% in 2022.

• Growth of the medium segment

The company has noticed a general trend around the decline in the number of sales in the premium feed category in favor of the medium segment since early 2022. 

Suziria expects a continuing decline in the premium segment but has not yet noticed a real increase in the share of medium feed in the economy category. 

“Current sales statistics in Ukraine show that 39% of sales are in the premium category, 27% in the medium category, and 34% in the economy category,” they add. 

• Drop in cat food sales

Cat food, which accounts for 70% of sales, witnessed a 3% drop in 2022.

According to Suziria estimations, wet cat food sales declined by 6.6% year-on-year (YoY), while dry food remained unchanged since 2021. The company further shared that there was a 17% increase in dog food, both in the dry and wet categories.

• Pet retail is still witnessing expansion

Suziria estimates that the number of pet stores is increasing by 150 units per quarter, but there have been no positive changes to revenue figures.

The company adds that large retailers like Epicenter (Paws), Fozzy Group (E-ZOO), Foodcom and Tavria have been opening new stores in modern trade channels and through the strong development of e-commerce. Expansions from both entrepreneurs and large pet chains suggest pet retail has remained an attractive market despite war pressures.