About company
The group of companies has 20 years of experience and it's among TOP-3 largest players in the Ukrainian honey market. The main activity is the purchase, processing and export of natural bee honey.
Production facilities are located in Central Ukraine. The company cooperates with beekeepers on an ongoing basis, purchases raw materials throughout Ukraine, controlling the condition of apiaries and the quality of honey. When purchasing honey, an incoming quality control is carried out and, if the required criterias are met, honey is homogenized and bottled in the required container. Further, honey is delivered to the final consumer according to the preliminary terms of the contract. Honey is exported to Europe, the Middle East and North America (USA).
The company's assets include two honey processing facilities with a harvesting capacity of more than 2,000 tons of processed honey per month, a modern honey research laboratory and infrastructure that has no analogues in Ukraine.
Quality control of honey is carried out at all stages of production through the own laboratory by qualified specialists using modern equipment and techniques.
Nowadays, this is the only Ukrainian company that owns a high-performance liquid chromatography-mass spectrometric system that makes it possible to examine honey in almost all parameters, including the presence of the entire group of prohibited substances, and for counterfeit. The laboratories also conduct enzyme immunoassays.
Moreover, the company cooperates with independent international laboratories Intertek, QSI, Eurofins. At the request of the client, it is possible to send samples to these laboratories for a control study.
More than 75 people are employed in the group of companies.
Products
Honey is a natural and delicious healthy food product. Honey production in Ukraine is about 120,000 tons or about 350 million US dollars. Its consumption in the world and in Ukraine is growing from year to year. Given the situation with the incidence of COVID-19, honey is a preventive measure and the dynamics of its consumption shows a 15-20% annual increase in sales.
Honey is sold in bulk lots (machine or container lots of 20 tons). Honey is supplied to wholesale buyers in 300 kg metal barrels or 28 kg plastic buckets. Packaged in the following volumes: 2.5 kg buckets (plastic); 700 g cans (glass); 400 g cans (glass); 250 g cans (glass); 170 g cans (glass); 20 g sticks (polyethylene).
In addition to honey, the company produces honey desserts, granola, and Granola bars.
Current situation
The group of companies is one of the leaders in the Ukrainian honey business and can potentially reach about 15% of the internal market if the necessary working capital is available (total requirement is $2.5-3.0 million).
Current export volume of honey is 4-5 thousand tons per year, while the production capacity of the group of companies and the export potential is 8-10 thousand tons of honey per year.
In recent years, the company has used about $6 million of its own capital to create a production and technological infrastructure and today it needs to increase working capital to increase sales volumes.
Offer for the investor
Several investment options are currently being considered:
1. Investments from 51,600 EURO (the amount is a multiple of one truck for export to Europe with a turnover of 60 days).
Form of investment: debt financing (loan agreement) with returns 20% per annum in USD.
2. Investments from $2 million. For investors with larger investments, individual conditions are discussed, including entry into the capital of a group of companies.
- Form of investment: joint venture, 50/50 equity in one of the export companies (Poland or Ukraine) to replenish working capital and ensure the execution of contracts with investor control of cash flows.
- Expected return up to 50% per annum (profit distribution with the investor 50/50, which corresponds to the investor's return of 25% per annum).
