Sofia-based Healthy Bars was founded ten years ago by Mavitan Chiftchi and Valentin Strekalovski. Today, the two partners run a business generating over 20 million levs (10 million euro) in revenue annually and are building a new protein bar factory worth approximately 40 million levs. To finance the project they secured a loan from UniCredit Bulbank at the end of last year, partially guaranteed by the European Bank for Reconstruction and Development (EBRD).
EBRD as a guarantor
The two financial institutions share the risk of a 14.8 million euro loan provided by UniCredit Bulbank to Healthy Bars, with the EBRD guaranteeing up to 5 million euro. Healthy Bars will also receive support through the EBRD's Green Innovation Program, which includes two components: a 900,000 euro grant for the purchase of modern energy-efficient technologies and a grant of up to 75,000 euro for an audit and the development of a corporate ESG strategy to reduce the company's carbon footprint.
Healthy Bars has previous experience working with the EBRD, having had access to consulting services through the EBRD's Small Business Advisory Program, supported by the EU, Strekalovski told the Capital Weekly.
The financing is intended for the construction of a new production facility for protein bars and a new production line. The factory will have a built-up area of nearly 15,000 sq. m, located on a 23,000 sq. m site in the Vrubnitsa district of Sofia. Currently, Healthy Bars operates in a facility in Sofia's Iliyantsi industrial zone with two production lines and approximately 110 full-time employees, plus 45 temporary workers.
"A third production line will be installed, consisting of 30 modern machines that consume less energy. The facility will also have space to add a fourth production line in the future if needed. The new equipment will allow the company to triple its production capacity to 500 million bars annually while also reducing carbon emissions. The total investment is approximately 20 million euro and will create an additional 45 jobs," Strekalovski said.
The project has a tight completion schedule, with the factory expected to be operational within a year and a half.
Our recipe, their logo
Healthy Bars develops and produces protein bars with various additives, but it does not manufacture under its own brand. Instead, it operates under a private label model, supplying more than 70 major business partners, including retail chains and sports brands.
More than 95% of the company's sales revenues come from international markets. The products are sold under different brands in over 47 countries, mainly in Western and Northern Europe.
The Bulgarian company has an R&D team that improves existing products and develops new ones. "We do not work as an outsourcing contractor. The recipes, ingredients, technology and know-how are ours, and we sell a ready-made product. The packaging design, marketing and distribution are handled by the client. In short: the product is ours, the packaging is yours. We don't develop a new recipe for each client but offer pre-tested, ready-made recipes," explained Mavitan Chiftchi.
Aiming to enter Europe's top 3
Healthy Bars has ten product lines of protein bars with over 150 variations, including different flavors, sizes, vegan and vegetarian options, as well as multi-layered bars (with caramel, various nuts, protein dough, fruits, Belgian chocolate). The company does not use Bulgarian ingredients.
"This is a mass market, not a niche market. Our products are not intended for fitness enthusiasts but for active individuals and young people with a dynamic lifestyle. We also offer bars with higher collagen content for older consumers. Vegan bars make up 20% of our total sales," Chiftchi explained.
The partners emphasize the strong demand for high-quality products at reasonable prices. "We are not cheap, and we do not compete with low-cost brands. We offer premium quality at a better price than market leaders and prove that our products are worth it. We show that we can compete with European companies and even sell better products than some of them," Strekalovski said.
Chiftchi also outlined the company's ambitions. "Our goal is to enter the top 3 of Europe's largest bar manufacturers. Right now, we are only in the top 10. The largest bar manufacturer, a Belgian multinational company, controls 30% of the market. Healthy Bars is not owned by a consortium or investment funds, nor is it publicly traded. We are the largest privately owned protein bar manufacturer. The advantage is that we can make decisions faster and more efficiently," Chiftchi added.
In 2023 the company reported 17.4 million levs in revenue, a 49% increase compared to the previous year, with 2.34 million levs in profit, up from 610,000 levs in 2022. The revenue forecast for 2024 is 22 million levs and for 2025 the company plans a 30% increase in sales.
Sofia-based Healthy Bars was founded ten years ago by Mavitan Chiftchi and Valentin Strekalovski. Today, the two partners run a business generating over 20 million levs (10 million euro) in revenue annually and are building a new protein bar factory worth approximately 40 million levs. To finance the project they secured a loan from UniCredit Bulbank at the end of last year, partially guaranteed by the European Bank for Reconstruction and Development (EBRD).
