The "Biosphere" corporation, a leading player in the home goods manufacturing and distribution market, doubled its European business in 2024 and aims to achieve the same goal next year, with the ambition of creating a "billion-dollar company," stated the founder and CEO of the corporation, Andrey Zdesenko, at the 10th Kyiv International Economic Forum.
"And we are growing. This year, we will double our growth. And next year, our ambition is to grow another twofold," he said during the closing session of the forum on Thursday evening.
Zdesenko noted that "Biosphere" is currently operating in 27 markets, and the most significant step toward entering international markets was taken following the onset of full-scale Russian aggression.
"We acquired the Austrian company Alufix with its brand, along with 4 branches and their production facilities in Romania. Just as our turnover in Ukraine fell by 30% because our audience left, and now it has decreased by another 10% due to ongoing price increases, unfortunately, people are becoming poorer (…) the average check is declining," added the head of "Biosphere."
According to him, thanks to the global development program and expansion in Europe and Asia, the corporation has managed to continue its growth. He pointed out that the "Biosphere" brands "Freken Bock" and Smile are leaders in Kazakhstan and Kyrgyzstan, and the company has a very strong presence in Armenia, Georgia, and Azerbaijan.
"Next year, we plan to open production in Uzbekistan because there is a 100-million cluster there," Zdesenko reported.
He also mentioned that "Biosphere" has established an international advisory board, which meets in Vienna and includes three Americans and two Europeans as members.
"These are world-class individuals who help us build our global expansion strategy. Because our goal is to create a billion-dollar company (…) We have such ambitions, and we are creating 'Biosphere 2.0'," emphasized Zdesenko.
He stated that the corporation faces dozens of global competitors operating without restrictions currently present in Ukraine.
"And the main challenge for 'Biosphere' is how to maintain the same pace, to win with ideas, intellect, design, wow-products, innovations, with the same complex equipment, and where to find the millions in investments needed for all of this," added the founder and CEO.
He pointed out that alongside this competition, the company is also allocating resources for energy supply, having installed a 1.5 MW gas generator last week, and is supporting the army and society.
Among the challenges of operating in the European market, Zdesenko cited differences in corporate cultures, logistical challenges, and funding challenges, as the parent company is limited by the National Bank in financing its international subsidiaries from Ukraine.
"We want to expand, we want to produce for Europe, but we cannot secure funding: marketing, advertising, personnel, capex, support, growth…," he stated.
The "Biosphere" corporation has been operating in Ukraine for over 25 years. Its product portfolio includes more than 1,000 items under 16 proprietary brands ("Freken BOK," "Fainyi Bonus," Vortex, Lайkit, Smile, Smile Baby, Superfresh, Bambik, Novita, Lady Cotton, Alufix, PRO service, GoWipes, "Chysta Peremoha," Pany Blisk, and PoketMon). The corporation is an official distributor of international brands such as TORK, Selpak, and Fantom.
The corporation's facilities in Ukraine consist of three factories with a total production area of 35,000 sq. m located in Dnipropetrovsk, Kyiv, and Khmelnytsky regions, as well as logistics complexes covering 30,000 sq. m. Together with the French Groupe Lemoine, "Biosphere" also owns a factory in Estonia for cotton production, with an area of 8,500 sq. m.
At the end of 2023, a new FOOD direction was launched with its own Cupsoul production, represented by tea brands such as Graff, Ritz Barton, and others.