The Vinnytsia Food and Flavor Factory, a leading producer of horseradish in Ukraine, is actively expanding its business by exploring new directions. The company has invested 8 million UAH in the creation of a new cider production facility, utilizing funds received through a state grant program supporting the processing industry.
This is reported by Finway
Scaling Production and Supporting Ukrainian Machine Engineering
The invested funds have allowed for the modernization of the company’s production base: large metal tanks and pasteurization equipment have been purchased. Special attention has been paid to the fact that all technical equipment is manufactured at the Kalynivka Machine Engineering Plant, which promotes the development of local industrial cooperation and creates additional economic benefits for the region.
According to the relevant committee of the Verkhovna Rada, such investments have a significant multiplicative effect, stimulating the development of related industries and creating new jobs. The factory already employs over 145 staff members.
Diversification Strategy and Export Potential
A significant contribution to the company’s financial stability has come from its core production—horseradish and mustard. The enterprise produces about 18 million jars of various products annually. In addition, the company is actively developing export supplies: the factory’s products are represented in 11 countries, including European Union states, North America, and the Middle East. In recent years, the share of exports has increased to 17%, and following the onset of the full-scale war, foreign sales volumes have tripled.
“Diversification into the cider segment reflects the strategy of expanding the product line with higher added value,” the company emphasizes.
The company’s product range includes over 50 items—from sauces and mayonnaise to various beverages and snacks.
Additionally, the company is investing in enhancing energy resilience by modernizing infrastructure ahead of a challenging heating season. This helps reduce operational risks and ensures stability in production processes.
The launch of the new cider production facility serves as an example of effective use of state support for the development of the processing industry, increasing exports, and supporting domestic machine engineering.