As Russia’s full-scale invasion of Ukraine continues to devastate communities across the country, it has also deeply impacted local industries, disrupting businesses and transforming how Ukrainian entrepreneurs operate under constant threat. Among the many stories of resilience emerging from the warzone is that of Yuriy Siomak, the CEO of the Khortytsia distillery, one of Ukraine’s largest vodka producers. When a missile struck their facility in Zaporizhzhia in early 2022, it destroyed a significant portion of their operations—halting production and causing losses worth millions.
Yet rather than give up, Siomak and his team made a daring move. Within days, they relocated operations to a new undisclosed location and began producing again—this time with a stronger focus on exports and building Ukrainian identity through premium vodka brands. His story is not just one of survival but of adaptation and national pride, intertwined with the country’s ongoing struggle and defiance against Russian aggression.
Critical details at a glance
| Topic | Ukrainian vodka industry during the war |
|---|---|
| Main Figure | Yuriy Siomak, CEO of Khortytsia Distillery |
| Key Event | Russian missile attack on distillery in 2022 |
| Location | Zaporizhzhia, Ukraine (facility); now relocated |
| Strategic Shift | From domestic focus to international markets |
| Current Activity | Producing and exporting premium vodka products |
When war disrupts the everyday business
Before the war, Khortytsia Distillery was producing some of Ukraine’s top-selling vodka brands, including Khortytsia and Pervak. The facility in Zaporizhzhia was modern and expansive, with state-of-the-art bottling lines and substantial domestic reach. But everything changed on a February morning in 2022, when a Russian missile barrage targeted infrastructure in the region. One of the rockets landed squarely on their distillery’s bottling section, destabilizing vital operations overnight.
The sudden destruction wasn’t just a physical blow—it represented an emotional one for the workers, many of whom lived in the surrounding area. Still, the team pulled together, initiating plans to salvage what remained and consider next steps. Yuriy Siomak, the company’s CEO, quickly realized they could not resume in their previous location under threat of continued attacks. A bold decision followed—to move operations somewhere safer, even if it meant starting from scratch.
How relocation sparked a fresh business model
Within a matter of weeks, Siomak and his leadership team found a new operational base in western Ukraine. The new facility, though smaller, offered safety and the chance to rebuild. Instead of trying to replicate their previous setup, Khortytsia leaned into a more agile, export-focused model. They streamlined product lines, doubled down on quality, and heavily emphasized branding that reflected Ukraine’s struggle for sovereignty.
This transformation wasn’t just logistical—it was philosophical. The company began positioning its brands as symbols of Ukrainian resilience. Creative efforts, including new bottle designs and storytelling around origin, aimed to resonate with diaspora markets in the United States, Canada, and parts of Eastern Europe. As Siomak puts it, “This vodka now carries more than flavor—it carries a message.”
We had two choices—shut down or adapt. We chose to adapt, not just to survive, but to show who we are as a people.
— Yuriy Siomak, CEO, Khortytsia Distillery
New branding built on national identity
One of the most compelling changes since 2022 has been the distillery’s rebranding strategy. Previously neutral in tone, the company’s current communication now actively supports the Ukrainian armed forces and uses blue-and-yellow color schemes in packaging design. Additionally, bottlenecks often feature inscriptions or QR codes linking to donation campaigns and stories about Ukraine’s resistance.
The company also launched a limited edition vodka named “Unbreakable,” which directly references the country’s fight. This campaign resonated globally, attracting interest from international distributors who saw value not just in product quality but in its cultural and emotional significance.
Financial resilience amid chaos
Despite facing millions in damages from the original missile strike, the distillery has managed to stabilize operations. Revenues from exports have steadily increased, particularly from North America where consumer interest in Ukrainian products is rising. According to company figures, they are now seeing 20% higher margins on foreign sales compared to pre-war domestic markets.
There’s also been strategic outreach to governments and NGOs to assist with rebuilding efforts. Through a mixture of private fundraising, grants, and war insurance, the distillery secured enough capital to maintain cash flow and invest in raw material supply chains, which have also been impacted by the ongoing conflict.
Industry-wide impact and leadership response
Khortytsia’s story is emblematic of a broader shift occurring across Ukrainian industry. Many manufacturing hubs in the east have either closed or relocated westward. As a result, businesses are rethinking traditional models, placing greater emphasis on flexibility, digital tools, and international expansion. Siomak in particular has emerged as a voice for entrepreneurial adaptation, often highlighting how vital it is for Ukrainian companies to think beyond survival and focus on long-term renewal.
The war has shown us that resilience isn’t just about staying open. It’s about redefining yourself in the face of loss.
— Olena Hrushka, Ukrainian Trade Association Spokesperson
Winners and losers from wartime business shifts
| Winners | Losers |
|---|---|
| Export-focused Ukrainian brands | Companies entirely dependent on eastern Ukrainian facilities |
| International markets looking for symbolic items from Ukraine | Small local distilleries unable to relocate |
| Consumers abroad seeking to support Ukraine economically | Traditional domestic-focused business models |
Optimism tempered by continued danger
While optimistic about the company’s future, Siomak acknowledges the situation remains volatile. Air raid warnings still interrupt supply routes, and rising production costs threaten profitability. However, he insists the brand’s long-term mission is stronger than ever—to serve as a cultural ambassador for Ukraine through quality vodka and national storytelling.
In the face of occupation, trauma, and destruction, Khortytsia’s movement from a bombed-out facility to a rejuvenated export strategy serves as a reminder of the irrepressible spirit Ukrainian business leaders continue to embody. More than just a distillery, it offers a case study in how enterprise adapts and survives even under the shadow of war.
Frequently Asked Questions
What happened to the Khortytsia distillery?
The facility was partially destroyed by a Russian missile strike in 2022, prompting the company to relocate operations to a safer part of Ukraine.
Who is the CEO of Khortytsia Distillery?
Yuriy Siomak is the current CEO and played a leading role in the company’s strategic transformation post-bombing.
Where is vodka production happening now?
Though the exact location remains undisclosed for security reasons, operations resumed in a safer region of western Ukraine.
Has Khortytsia stopped selling in Ukraine?
No, they continue to sell domestically but have significantly shifted focus toward export markets.
Why is the new branding important?
The branding now symbolizes Ukrainian resilience and includes nationalistic elements that appeal to global audiences seeking to show solidarity with Ukraine.
How did the business sustain financially after the strike?
They relied on export revenues, strategic partnerships, and funding support to stabilize operations and rebuild supply chains.
What is the Unbreakable vodka edition?
It’s a limited-run product designed to raise funds and awareness for Ukraine’s war efforts while showcasing national pride.
What’s next for the company?
Continuing international expansion, deepening brand identity, and possibly developing new product lines that reflect modern Ukrainian culture.