Aiming for ‘pop’-ularity: With EU support, Zernovyta’s breakfasts set to explode onto US market

Ukraine
Aiming for ‘pop’-ularity: With EU support, Zernovyta’s breakfasts set to explode onto US market

“Buckwheat for Perfectionists” is how the employees of Zernovyta’s factory in Zhytomyr humorously refer to their main product. For over 23 years, they have been providing Ukrainians with high-quality groats from various grains, while also introducing them to unique dishes that were previously uncommon in the country. But regardless of the latest culinary trends, at Zernovyta, quality always comes first.

From buckwheat to pasta

According to the factory’s founding legend, the production of buckwheat groats in the village of Ozerianka in Zhytomyr Oblast started with a simple family story. Each morning, a father prepared breakfast for his children, often serving porridge. However, the quality of groats produced in Ukraine in the late 1990s – largely processed using outdated Soviet equipment – was questionable. So, the father started to set up his own business to produce high-quality buckwheat.

In 2001, the newly formed company began sourcing buckwheat from local farmers and processing it into groats. From the outset, quality has been the company's primary focus. Over the years, the factory acquired increasingly modern equipment for grain cleaning, including a high-tech optical sorting machine and a private laboratory. This strategy paid off; by 2012, the factory was among top five largest buckwheat producers in the country, with the capacity to process 45 tons of buckwheat daily.

The product range has also expanded: in addition to buckwheat, the factory now produces groats from wheat, barley, and rice grown in Ukraine’s Crimea. Some time later, the Zernovyta brand launched wheat flour, sugar, crispbread and oat flake production, catering to health-conscious consumers with their unique recipes. In 2018, the company’s newly established Zerno Zhyttia factory began producing Ukraine’s first egg-based pasta.

Ukrainian quality for Americans

Although Zernovyta’s manufacturing facilities are located far from the frontline and have not been affected by enemy missile and drone attacks, the company, like many other Ukrainian producers, has faced challenges related to the war, says Yuliia Karasevych, head of the company’s “Puffy Grains” production line.

“We experienced an almost instant decline in demand,” Karasevych says. “Millions of Ukrainians, along with their children, left the country in the early days and weeks of the full-scale invasion, while those who stayed behind began to switch to cheaper products.” 

Zernovyta’s prices are not considered “premium,” even though there are many less expensive options available on the market. However, during the initial months of the war, price became the primary criterion for most Ukrainians. This shift led to a significant drop in demand in the “healthy food” segment that the company had developed over the past decade. Consequently, Zernovyta began looking for new market niches.

“In 2023, our team attended Anuga, one of Europe's largest food fairs, held in Cologne, (Germany),” Karasevych explains. “It was there that we became interested in puffy grain technology, which is highly popular in Europe and the United States, but hardly known in Ukraine.”

The company identified several strategic opportunities in this line of products. First, it offered a chance to tap into foreign markets with products that local consumers are already familiar with and are fond of – unlike buckwheat and other grains. Additionally, Zernovyta recognized that millions of Ukrainian refugees on returning home would likely want to purchase healthy and tasty products reminiscent of those they ate during their time abroad.

The company received vital support for this ambitious project from the international support programme, which is funded by the European Union under its EU4Business Initiative and the German government.

“The EU4Business programme grant covered one-third of the cost of the new expensive equipment and enabled us to launch a line of entirely new products for Ukraine in the shortest time possible,” says Karasevych. “Most importantly, it helped us decide to move forward, no matter what.”

Zernovyta introduced its first “explosive” breakfasts – wheat, rice, and pearl barley that expand into “puffy” grains when heated, similar to popcorn to the Ukrainian market in 2024. Due to high demand, the company now plans to scale up this product line and acquire additional equipment.

“While puffy grains are not yet popular in Ukraine, we believe demand will grow, as this food is not only delicious but also completely natural and healthy,” says Karasevych. “Moreover, it’s not the first time we’ve introduced Ukrainians to new foods.”

She says the company has already signed contracts in the United States and is finalizing packaging designs for this market, so Americans will soon have the opportunity to enjoy breakfasts made from Ukrainian grains.

Zernovyta’s ultimate dream is to nourish the world with high-quality products rooted in the best Ukrainian traditions. The first steps on this journey have already been taken, and the company has ambitious plans to enter European markets in the future.

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