The company started its operations 18 years ago at domestic market of bread and bakery goods of Ukraine. Since 2014 the company has become a leading certified production company of organic breads in Ukraine. The company is specialized in production of top-notch nutritious organic breads made of the best quality ingredients.
Only certified organic raw materials are used in the production process, being grown according to norms of organic farming without application of synthetic fertilizers, chemical crop protection products, or any genetically modified organisms.
Organic breads are produced in small batches prior being fermented during 12-24 hours before dough dividing and baking. It enables to produce high quality breads without taste improvers, baking powders, or preservation agents.
The company bakes bread of sourdough, sponge dough, and hop yeast dough. All the breads are certified and mark signed as organic food.
Information about the assortment:
- Non-organic produce – 6 types of toast bread (with wheat bran and seeds)
- Organic produce – 6 types of organic breads (of wheat, rye, and with seeds), and 5 types of organic cookies (shortbread, oatmeal, cornmeal, and with walnuts)
Market and Competition:
Distribution is mainly held via super markets such as Auchan, Novus, Silpo, Karavan, Velyka Kyshenia, Mega Market) upon the concluded contracts with the major retail chains. Organic food is getting popularity and on trend. The regulatory laws are framed and yet to be adopted. No competition, as of yet.
Supplies: own transportation by 5 cars like Mercedes Sprinter (1 car is privately owned and 4 are under lease agreements).
Promotion and Advertising: sample tests, articling in magazines, participation in specialized trade shows and fairs
Form of incorporation: limited liability company
Taxation: general tax principles
Location: near Kyiv city
Financials:
Gross revenues
In 2015 – USD 250 000 (20% of production capacity used)
In 2016 – USD 320 000 (as planned)
Net profit
2015 – USD 20 000
2016 – USD 50 000 (as planned)
Tangible and Intangible Assets:
- Equipment
- Inventories
- Two registered trade marks
- Contracts with major retail chains
- Developed standard specifications for products
- Organic certification of production process and products
- Corporate structure (personnel)
- Production complex with warehouses and office space in lease (favorable geographical location for low rent payments)
Fixed assets:
- Seletra 30 (bread slicer) – estimated 85 000 (to compare, the brand new of the kind costs EUR 180 000)
- Wrapper (packaging equipment) – estimated 90 000 (the brand new costs EUR 170 000)
- MIWE (baking oven) – estimated 40 000 (the brand new costs EUR 80 000)
- Electrolux (oven) – estimated 15 000 (the brand new costs EUR 50 000)
- Other equipment: mixing and kneading machine, dough divider machines, mixers, and tuber – at estimated 180 000 (the brand new of the kinds cost EUR 300 000)
At this, a milling machine is to be purchased too.
Prospects and opportunities:
Export to the European countries (200-300 shops can be prospects selling 10-15 packs of cookies a month)
Increase of local sales by expanding of sales teritorry at home market via launching of intensive marketing campaign and advertising (many sales channels and advertising are not used)
Making sales through market squares, schools, hotels, restaurants, avia traffic companies, and ecommerce, etc
There is a possibility to purchase an organic farm too (information is provided upon request)
