By Rostyslav Vovk
No business is completely immune to instability. Even the most carefully crafted growth strategy can’t shield a company from external factors that force a reassessment of plans. A recent example is the potential introduction of new tariffs on European goods by Donald Trump. Although their implementation has been temporarily postponed, manufacturers are already preparing for a possible drop in exports and are actively seeking alternative markets and ways to optimize their supply chains.
I am the co-founder and CEO of Kormotech — an international family-owned company with Ukrainian roots that has been producing cat and dog food since 2003. We’ve weathered three global crises, and just when it seemed things were finally stabilizing, Russia launched a full-scale invasion of Ukraine. So how did we not only stay afloat but continue to grow in such challenging conditions? Below are five practical steps we’ve tested that can help manufacturers remain resilient during times of crisis.
Concentrate your expansion efforts
You could be exporting to dozens of countries yet still lack consistent results in any single market. The broader your geographic reach, the harder it becomes to establish clear management processes — especially if you’re not a global corporation with teams in every region.
To gain a foothold in a new market, systematic investment is needed to build brand trust. But before committing resources, it’s crucial to define what success looks like for you — whether it’s increasing brand awareness, market share, or sales — and then focus on the markets where those goals are realistically achievable.
For instance, in the highly competitive pet food segment, no brand can survive without consistent promotion. Before entering the U.S. market, we spent a year and a half preparing, followed by five years of active marketing investment. We were ready for these costs because our primary goal was to establish a strong and lasting presence. While we haven’t reached the break-even point yet, we’re on track and expect to get there by 2027.
To focus your efforts effectively, consider categorizing markets by priority level. This approach not only helps concentrate resources but also supports strategic decision-making — from investment allocation to product adaptation.
Respond swiftly to change
A company’s resilience is defined not only by the strength of its processes but also by its ability to quickly adapt to disruptions — whether it’s sudden shifts in demand, political instability, or supply chain breakdowns.
A recent example is this year’s strikes at the ports of Rotterdam and France, which temporarily brought container shipping to a halt. Even after the strikes ended, shipments continued to face delays.
After Russia’s full-scale invasion of Ukraine, Kormotech opened an additional warehouse in Poland, capable of holding a two-month supply of products. This safeguards us against potential delays at the border when transporting goods from Ukraine to the EU — ensuring our partners always have access to stock. In parallel, we’re also developing alternative delivery routes.
Preparing for various scenarios is key to operational maturity. You can’t predict exactly what will happen, but you can plan your responses in advance. Another effective risk management strategy is to combine in-house production with facilities located in other countries near your key markets.
Consider local suppliers and have a reliable backup
Global supply chains have become more vulnerable than ever. From pandemics and wars to changes in customs regulations — all of these pose risks to supply and production. One way to invest in resilience is by building partnerships with local suppliers.
At Kormotech, we source raw materials from across the globe — from Norway to New Zealand. Before Russia’s full-scale invasion of Ukraine, about 50% of our raw materials came from local sources. But when logistics came to a halt in early 2022, we quickly shifted toward Ukrainian suppliers. Today, up to 90% of our raw materials are sourced locally.
Time has proven that this approach was both an effective anti-crisis measure and a strategically wise choice. It secured consistent access to raw materials and lessened reliance on external factors like tariffs.
Still, localization isn’t a one-size-fits-all solution. For certain sectors, it’s either unfeasible or economically impractical. Thus, building a resilient supply chain means balancing dependable main suppliers with trusted alternatives who can be activated as a backup — essentially, having a solid plan B.
Develop long-lasting partnerships
Resilience involves more than just internal operations; it also depends on having people by your side during uncertain times. Building relationships with suppliers, distributors, and retailers grounded in trust, openness, and mutual support enables you to overcome crises and recover more quickly.
We have seen this repeatedly. For instance, following the announcement of Russia’s invasion, Kormotech’s Western partners placed orders for twice the usual volume with full upfront payment — all without any request from us.
Investing time and resources in partner relationships means more than just meeting your commitments; it also means fostering open communication and supporting their development. In times of crisis, this ensures they will stand by your side to support you.
Think global, act local
If you want stability, you have to be ready to evolve. Globally, this means adapting to local contexts while maintaining your brand’s core identity. What’s successful in one country might be unacceptable in another.
For example, in the pet food industry, consumers across countries select products using similar criteria. However, to win over customers with your brand, it’s crucial to respect local consumer behaviors. That’s why embracing the “think global, act local” approach is essential — tailoring products to fit the preferences of each market. In Denmark, for example, we excluded rabbit formulas because rabbits are viewed as household pets there.
Consumer preferences are always shifting, and staying sustainable as a producer means staying ahead of these trends. Achieving this requires a solid foundation: a clear growth strategy, adaptable processes, strong partnerships, and deep consumer insight.
About Rostyslav Vovk
Rostyslav Vovk, Chairman of the Board and Co-owner of Kormotech. This international family-owned company with Ukrainian roots ranks among the top 50 global pet food manufacturers. Its brands are available in 50 countries, both under its own trademarks and those of partner companies. Rostyslav Vovk leads a team of 1500 employees working worldwide.
Photo – https://drive.google.com/drive/folders/1eh2pzi8OlbCEqh-3ifXEj9YwlyJUb2Od?usp=sharing
