The story of the snEco brand’s relocation from Kharkiv: the business was temporarily halted

With the start of the full-scale invasion, many Ukrainian entrepreneurs had to flee the war, leaving behind not only their homes but also the businesses they had built for years. Some were even less fortunate – their production was destroyed by russia. Problems also hit the brand snEco from Kharkiv. At first, the company had no access to the equipment it needed, as everything remained on the premises of a former Soviet plant, and then russian shells struck their workshop.

However, the entrepreneurs did not give up and decided to start from scratch in another part of the country. The business relocated successfully and now makes its products in Mukachevo. snEco co-founder Vadym Gryshyn told MC.today about this as part of its special project “Relocated”.

Fact file! The brand snEco (Prime Snack LLC) was founded by brothers Pylyp and Vadym Gryshyn. The eco-snacks are based on a technology invented by NASA in the 1970s to provide astronauts with wholesome food – food dehydration.

And so, in 2016, a new product called snEco appeared in Ukraine. The manufacturer invented and patented a unique low-temperature drying technology that makes the snack wholesome and natural, with nothing but 100% cheese in its composition. Their special feature is that these snacks can be stored even without a fridge.

The full-scale russian invasion led to a temporary halt of the business and broke our supply and sales chains. At first there was shock, and then came the realisation that our production facilities were located on the premises of a former Soviet plant.

We had no access to the equipment for almost a month, and right after we managed to take out part of the equipment – our workshop took a direct “hit”. That is when we realised that businesses are among the priority targets of russia’s missile strikes. Because of the fighting, we lost both the finished products stored at the plant and the raw material – several tonnes of high-quality cheese.

The production site became a facility closed to further use by civilians. So our shock doubled. Then came long negotiations and attempts to get in there to take something out.

Almost immediately after the invasion began, it became clear that working “normally” in the Kharkiv region would be impossible for a long time. We took out part of the equipment, not without “adventures”, and the most important question was whether to rebuild in Ukraine or abroad. Patriotic thoughts won, and we gradually resumed work on Ukraine’s western border.

But then logistics problems began – moving anything anywhere was very difficult, and prices rose 5-10 times within a few days. There was great chaos that seeped into every area of our lives.

How and where we managed to relocate the business

The relocation took place in several stages: first the founders and some of the staff, then the remaining products and raw materials, and after that part of the equipment. We decided to move to Mukachevo. At the time, we understood that export was our only option for survival. We also chose it because it is the most remote and calmest region.

Unfortunately, we were not able to keep the whole team – some employees left Ukraine. For some time we continued to pay salaries and stay in touch, and helped as much as we could. Over these two years, our team has been renewed by 50-70%.

Will we return to Kharkiv? We have no such plans for now. Especially since the city is 30 kilometres from the border with the aggressor, so it is impossible during the war.

Who helped with the relocation? At first we did everything on our own, as there were no assistance programmes at the time. We moved everything with our own vehicles and even with Nova Poshta lorries.

Then we discovered grants and other opportunities.

• For the construction of a solar power plant, we received a grant from the IOM, the International Organization for Migration, a UN agency. Later, the state also gave us a relocation grant.
• And recently we received a grant from USAID

• for equipment and for expanding our production capacity. Thanks to this funding, we are increasing our production volumes for export.

We managed to launch the plant in August 2022. With the grant money, we bought raw material – fresh cheese, from which the finished products were then made. A micro-grant also allowed us to pay the rent for the premises, taxes and employees’ salaries. This was the first step towards a full recovery, which is still ongoing.

How the business is growing after relocation

Now we are growing even faster than before russia’s full-scale invasion. We have already discovered new opportunities in Ukraine and in foreign markets.

In particular, we are the first company in Zakarpattia to receive permission to export dairy products to the EU, and we also supply goods to Japan, the USA and other countries. And the flag of Ukraine flies proudly on every pack – because we are proud of snEco’s country of origin!

Our brand also sells its products all over Ukraine. Back in 2022, we were not present in many grocery chains. Now our products are in Varus and Novus, and in May we “got into” ATB – it is the largest chain, and we are still at the trial stage. We hope that ATB will extend our products to all of its 1,200+ shops.

Our new products, Superfood and Cheddar, are on sale there. Look out on the shelves for the new, stylish black packaging next to our familiar kraft one – after the restyling we have just carried out!

Read more at https://mc.today/uk/u-nash-tseh-buv-prilit-biznes-timchasovo-zupinivsya-istoriya-relokatsiyi-brendu-sneco-z-harkova