18 July 2022

Two out of three of Nestle’s factories in Ukraine with their 6 000 jobs continue to operate regardless of the invasion. Kharkiv operations are suspended so far whereas Lviv and Lutsk are underway. They make sauces, coffee, soft drinks, and sweets.

According to Leonid Vereshchahin, coffee and drinks director for Nestle in Ukraine and Moldova the company did not lay off the staff and even those who fled abroad are working.

Logistics is another challenge so far. Supplies are re-routed via Romania ports and ground transportation across the Ukrainian western border.

- We need many ingredients that we cannot make in Ukraine. For example, we cannot grow coffee here. However, we do our best to meet high demand. Instant coffee, dogs’ food, and sweets are especially popular. On the other hand, premium products, such as Nescafe Dolce Gusto or Starbucks have dropped. We are lacking baby formulas as many women and children left Ukraine, Leonid Vereshchahin explains the situation.

Current challenges are the company’s main priority nowadays. The long-term strategy developed before the war is a good signpost.

- It is difficult to plan under the circumstances. We can only see how the market reacts and try to meet the demand. It is difficult to forecast its ups and downs. We are forecasting to secure manufacturing processes, but we focus on the present day and short-term perspective.

- Such a situation affects KPIs and goal setting. On one hand, we have them, but on the other hand, they are more like direction markers for us, Leonid says.

- We are so used to the goals. The corporate world revolves around them because they help to keep up even if you don’t know what happens tomorrow. We need the goals and have them. But we do not demotivate people who were not able to meet the goals set a month before the war, Leonid mentions. To learn more about Nestle Ukraine wartime situation visit our record.