IDS Ukraine production costs surge nearly 50% in 2026 – CEO
The cost of goods produced by IDS Ukraine Group (Morshynska, Myrhorodska, Alyaska and Aqua Life brands) increased by almost 50% in 2026 due to higher fuel and electricity prices, while this was only partially reflected in retail prices, the company's CEO Marko Tkachuk said in an interview with Interfax-Ukraine.
"Overall, due to a combination of factors, including fuel, the operation of generators during power outages and new electricity tariffs, costs increased by almost 50%. However, this was only partially reflected in the final price for consumers; we absorbed the bulk of the impact ourselves," Tkachuk said.
According to him, the key factors behind the increase in costs were a doubling of logistics rates due to a more than 50% increase in diesel fuel prices, the use of generators during power outages and higher electricity tariffs. In particular, logistics account for about 10% of the cost structure of the products, so the doubling of transportation costs added at least 7% to the cost of production.
The head of the group of companies stressed that keeping prices down had reduced product margins, but a partial adjustment of shelf prices is necessary to pay employee salaries, taxes and finance charitable programs.