Kormotech Enters Malaysian Market

As of August 12, Malaysian consumers can purchase premium pet food brand Club 4 Paws on local specialized online platforms and offline stores. This move opens new opportunities for Ukrainian products in one of Asia's most promising markets.

“The pet food market in Malaysia has great potential, with an annual volume reaching 339 million euros and 92.8 thousand tons,” noted Eduard Babenko, Head of the Strategic Business Unit for Ukraine, Moldova, and Southeast Asia.

Kormotech's entry into the Malaysian market posed logistical challenges. Due to the country's geographical peculiarities, divided into mainland and island parts, finding a distributor that could operate in both regions was essential. Eventually, the company signed an agreement with Pets Future Marketing, a distributor with extensive experience in the pet food industry and a vast network of retail outlets.

“Negotiations with our new distributor in Malaysia began in May of last year, and by the end of summer 2024, we signed the agreement. In August, the first container of premium dry food under the Club 4 Paws brand, approximately 22 tons, arrived at the distributor's warehouse. Since August 12, our products have been available to Malaysian consumers in stores. The next step will be the shipment of wet food under this brand,” said Vladyslav Mazurkevych, Manager for Developing Export Markets in Asia at Kormotech.

According to Eduard Babenko, the Malaysian market is highly competitive, with many strong brands operating locally and from Thailand, China, Europe, and the USA. It is essential to ensure the presence of all our brand lines on trading platforms, as even small Malaysian stores actively operate in the e-commerce sector.

Kormotech plans to expand its product range in Malaysia, including the super-premium, Optimeal, and the standard category brand My Love, to cover all market segments. By the end of the year, the company intends to establish cooperation with major supermarkets in Malaysia.

It is worth noting that Kormotech concluded 2023 with a turnover of $152 million and increased its share of sales outside the Ukrainian market to 31%. Compared to last year's sales volume, the company's brands demonstrated the most dynamic growth in the markets of Romania (+35%), Poland (+11%), and Moldova (+11%). Over the past year, the company signed contracts with partners in Malaysia, began sales in Finland, and is actively developing in the markets of Spain and Italy, expanding its product presence to 43 countries worldwide. At the same time, Kormotech has maintained its leadership position in the Ukrainian market.