Biosphere Corporation, one of the market leaders in the production and distribution of household goods, has approximately doubled its European business in 2024, sets the same goal for the next year and aims to create a “billion-dollar company”, the corporation’s founder and CEO Andriy Zdesenko said at the 10th Kyiv International Economic Forum.
“And we are growing. This year we will grow twice as much. And next year our ambition is to grow two more times,” he said at the forum’s closing session on Thursday evening.
Zdesenko noted that Biosphere currently operates in 27 markets already, and the most serious step to enter international markets was made after the start of full-scale Russian aggression.
“We acquired the Austrian company Alufix with the brand, c 4 branches and their production in Romania. Just when we had a 30% drop in turnover (in Ukraine), because our audience left, and now another (dropped) by 10%, because the constant increase in prices, unfortunately, people are getting poorer (…) the average check is falling,” – added the head of ‘Biosphere’.
According to him, thanks to the program of global development, expansion in Europe and in Asia, the corporation managed to continue to grow. He pointed out that Biosphere’s brands “Freken Bok”, Smile are leaders in Kazakhstan and Kyrgyzstan, the company has a very strong presence in Armenia, Georgia, Azerbaijan.
“Next year we plan to open production in Uzbekistan, because there is a 100-million-strong cluster there,” Zdesenko said.
He also noted that Biosphere has established an international advisory board that meets in Vienna and whose members include three Americans and two Europeans.
“These are world-class people who help us build a strategy for world expansion. Because we have a goal to create a billion-dollar company (…) There are such ambitions, and we are creating Biosphere 2.0,” Zdesenko emphasized.
According to him, the corporation has dozens of global competitors, working without restrictions, which are now present in Ukraine.
“And the main challenge for Biosphere is how to be at the same pace, to win with ideas, intelligence, design, wow products, innovation, with the same sophisticated equipment, and where to take all the millions of investments needed for this,” – added the founder and CEO.
He pointed out that along with this competition, the company is additionally spending resources to provide electricity, notably installing a 1.5 MW gas generator last week, helping the army and the community.
Among the challenges in operating in the European market, Zdesenko cited differences in corporate cultures, logistical challenges and financing challenges, as the parent company of National Bank Acts is limited in financing from Ukraine for its international subsidiaries.
“We want to do expansion, we want to produce for Europe, but we can’t finance: marketing, advertising, people, capex, support, growth…,” he stated.
Biosphere Corporation has been working in Ukraine for more than 25 years. Its product portfolio includes more than 1 thousand items under 16 own trademarks (“Freken BOK”, “Fainiy Bonus”, Vortex, Lykit, Smile, Smile Baby, Superfresh, Bambik, Novita, Lady Cotton, Alufix, PRO service, GoWipes, “Chista Peremoga”, Pany Blisk and PoketMon). The corporation is an official distributor of such international brands as TORK, Selpak and Fantom.
The corporation’s capacities in Ukraine are represented by three plants with a total production area of 35 thousand square meters in Dnepropetrovsk, Kiev and Khmelnitsky regions, as well as logistics complexes with an area of 30 thousand square meters. m. Together with the French Groupe Lemoine, Biosphere also owns a cotton products plant in Estonia with an area of 8.5 thousand square meters.
At the end of 2023, a new FOOD direction was opened with its own production Cupsoul, represented by such tea brands as Graff, Ritz Barton and others.
