Largest food and beverage producers in Bulgaria: Sunflower stars emerge

Six companies in the top 50 reported a loss, and one (Bella Bulgaria) did not provide profit data.

Things are escalating

For another year, the undisputed leader in the top 50 for food and beverages is Oliva - owned by the grain trader Buildcom with sole owner Angel Georgiev. The revenues of the company, which exports almost all of its production, grew by over 82% and reached an unprecedented level of over 2.6 billion levs. This is a new record for the company, which in 2021 reported over 1.45 billion in sales.

Oliva is the largest producer of sunflower oil and sunflower meal in Bulgaria. It has over 50% market share in the sunflower oil business. The company manages four plants - near Varna, Dobrich, in Knezha and in Polski Trambesh, which allow processing of over 700 thousand tons of seeds per year. Its portfolio includes crude and refined sunflower oil, sunflower meal, and peeled seeds. Annually, about 80 - 90% of the production is intended for export. Buyers of the crude oils are refineries from different parts of the world. Oliva does not have its own brands and sells part of the refined oil in bottled sizes with the customer's label.

In June, Buildcom announced that the group, which includes Oliva, will build a grain port in Varna for 100 million euros. EIB is granting a loan of 50 million euros for its construction, which should be completed by mid-2026. This is yet another financing for the company from international institutions.

In third place in the ranking is another producer of sunflower oil - Papas Oil, owned by Georgi Tashev. The company has refineries in Yambol and Balchik, as well as a plant for the production of cold-pressed vegetable oils in Byala Slatina. Its revenues last year exceeded 619 million levs.

"2022 was turbulent for the sector - the impact of the war in Ukraine. Due to the interrupted supply chains from Ukraine, momentum was gained by the Bulgarian producers who replaced the Ukrainian sunflower oil producers. The markets experienced an acute shortage of the product, but at the same time sunflower prices jumped very unexpectedly. Thanks to the experience we have in foreign trade, we filled the gap in the period from February to the summer of 2022. However, the increased demand was limited in time, as the supply from Ukraine went back to normal at the end of the year," commented Tsvetelina Peneva - financial director of Papas oil.

Through his company Saint Zhiran, Georgi Tashev also owns the oilseed oil producer subisdary Sun Foods in Balchik, which occupies 14th place in the ranking. In the past, the Ukrainian Oleksandr Minov, who now controls the local Biser Oliva (27th place) together with Shota Hadjishvili also had a share.Biser Oliva reports a single-digit growth in revenues, reaching nearly 109 million levs last year.

The top 50 of the sector traditionally includes another producer of sunflower oil - Klas Olio from the village of Karapelit in Dobrich area, which occupies 11th place. The family company was established in the 1990s by a Turkish entrepreneur. Later, the business was inherited by his wife Nermin Yilmaz and son Mertgun Yilmaz, who in 2020 sold the company to the Varna producer and trader of grain and oil crops Magic Flame - owned by Eduard Baghdasaryan. The revenues of Klas Olio for 2022 jump by 57% and exceed 227 million levs.

Meats and more

Bella Bulgaria is ranked high again this year, through its consolidated statement, which gives it fourth place in the sector. The group's revenues for 2022 reach almost 575 million levs, marking over 24% growth.

The company was established in 1997, produces pasta products, meats and spreadable cheeses, carrying out direct distribution to over 12 thousand stores and warehouses. The food is produced in 12 factories in Bulgaria with a capacity of 350 tons per day and are sold under their own and private brands, including popular ones such as Orehite, Leki and Naroden.

Bella Bulgaria owns production and logistics bases in Bulgaria, Greece, Romania and Hungary and sells in over 40 countries. All capacities in the country are powered by green energy installations, the company informed Kapital.

In this year, production of the Indonesian rendang-padang began in the company factory in the village of Kostievo near Plovdiv. The enterprise was created specifically for the production with an investment of 3 million dollars. It is the first and so far the only place in Europe where the Indonesian product is made, with which Bella Bulgaria will supply restaurants in Europe, catering companies, embassies and other state representations of Indonesia in Europe and the Middle East. This year, Bella invested about 8 million levs in its pasta factory in Svilengrad, which has not worked for nearly 10 years, but will now increase the group's production capacity.

Co-founder Georges Veselinov and Greek citizen Dimitrios Vintzileos through Impala Holding, in which they each have a 50% stake, are listed as actual owners of Bella Bulgaria in the Commercial Register. In 2014, there was a change in ownership - one of the co-founders of the company, Vencislav Georgiev, left the company, selling his share for 30 million levs.

Revenues over 265 million levs are enough to rank Boni Holding in 8th position in the sector top 30. The group, which unites the meat plants in Lovech, Karlovo and Ruse and several pig farms, operates the entire production cycle on its own - from feed, through genetics and pig breeding to meat processing and the production of sausages under the Boni brand. At the end of 2020, the company agreed with the European Investment Bank on a 30 million euro loan for the modernization of existing facilities and the construction of new production facilities.

At the beginning of 2022, the holding started production in the completely renovated pig farm on the outskirts of the village of Varana and it operates in a full breeding cycle and produces about 70,000 pigs per year, which brings the total number of animals raised in the group to about 360,000. per year. With a total of about 1.2 million animals produced in the country, according to the agro statistics of the Ministry of Agriculture, this gives the holding a 30% share in pig production in Bulgaria.

In addition to the already functioning 1.8 MW of solar capacity in Mesocombinat Lovech, four other companies of the group have built new 4 MW of solar, while the target remains the 15 MW mark.

Pilko (9) - part of Ameta Holding, reports nearly 32% growth in revenues, which will exceed 254.4 million levs in 2022. The company is owned by one of the largest chicken producers in Europe - the German PHW. The Bulgarian group unites the poultry farms with the Pilko slaughterhouse in Razgrad, which sell under the trademark Ludogorsko chicken, the Rositsa feed plant - Pavlikeni, and poultry farms around Shumen and Zavet.

The other main chicken producer - the Gradus group, which participates with consolidated financial data, takes 16th place in the top 50. The listed company focuses on poultry farming, production of fodder and hatching eggs, and trade. According to the activity report, meat and meat products segment holds the largest share in sales revenue (59%). However, the company has decided to limit the assortment of sausages under the "I eat!" brand. "Because of the high production costs of raw materials, auxiliary materials and energy carriers", according to the management .

At the end of last year, the founders of "Gradus" - the brothers Ivan and Luka Angelovi, who are also the largest shareholders in the company, resigned from the board of directors. Angel Angelov (son of Ivan Angelov and owner of 20.67% of the shares) and Bistra Kotseva took the spots.

The Top 50 also includes Kompas - Montana (49) - a producer of pates, sterilized meats for direct consumption and pre-done meals, owned by Rozalin Spasov Nonchev.

A sip of inflation

The bottling company Coca-Cola HBK Bulgaria reports a nearly 20% jump in revenues, which exceed 477 million levs, and occupies fifth place in the ranking. According to data including 5 entities - 201 million levs direct revenues were generated, 121 million levs indirect revenues and 469 million levs deeper in the supply chain. In other words, every 1 lev spent on Coca-Cola drinks leads to 0.75 levs in revenue for Bulgaria, the company commented to Capital. In 2022, 389 million liters of beverages were produced in the two factories of Coca-Cola HBK Bulgaria in Kostinbrod and Bankya, and 175 million levs were invested in the purchase of goods and services from local suppliers.

Devin (20) also recorded a stable double-digit growth in turnover. The company - owned by the Belgian Spadel, is the market leader with its brand Devin for natural mineral and spring water. In addition, the company is a distributor of Red Bull energy drinks and Granini fruit juices for Bulgaria. "Despite the difficulties in the past year, we approached consumers with care and did not transfer all the burden to them, but continued to look at the long term, to develop the category and its products. In 2022, Devin invested in modern energy-saving equipment and automation of the production process , innovations and consumption measurement systems", commented Borislava Nalbantova, executive director of Devin, for Kapital.

In the 35th position is another producer of soft drinks and bottled water - "Timbark Bulgaria", owned by the Polish company of the same name. The Bulgarian company was founded in 2005 after the acquisition of the Queen's juice brand from Maspex Wadowice Group, which is one of the largest companies in the food industry sector in Central and Eastern Europe.

The producer of non-alcoholic beverages and spring water Bachkovo - the company Nova Trade occupies the 40th place in the sector ranking.

Sweet revenues

In second place in the ranking is ADM - Razgrad. The company - owned by the American Archer Daniels Midland (ADM), produces corn starches, glucose-fructose syrups, crystalline and liquid dextrose - basic raw materials for the food and other industries. The products are obtained through deep processing of corn, therefore the company is the largest single consumer of this crop in Bulgaria. The main markets for the company's production are Bulgaria, Turkey, Romania, Germany, the Czech Republic and Poland, the ADM activity report states. In 2022, the company has invested 15.4 million levs mainly in properties, machinery and equipment. The company has reduced the energy used by 11%, the carbon emissions per ton of processed production by 18% and has kept the water resources used at the level of 2021.

Nestle Bulgaria (6th place) also has growing sales. "The company reports double-digit revenue growth in 2022 - a year of post-pandemic, inflation, increased prices of raw materials and energy worldwide, the war in Ukraine, supply uncertainty," commented the company's executive director Petar Stoilov. According to him, the company recorded a 5% growth in sales volume, "which means consumer consumption". This comes amid a 4.5% decline in the country's food industry, according to Nielsen data. In 2022, Neste Bulgaria produced over 20,000 tons of products, the goal is to increase production this year.

The other internationally renowned manufacturer of sweets - Mondelēz, is in the top 50 with several of its Bulgarian companies - Mondelēz Europe Procurement - branch Bulgaria (12), Mondelēz Bulgaria (13), Mondelēz Bulgaria Production (45).

In May 2021, it was announced that Mondelēz International was buying Greek croissant and baked roll maker Chipita for around $2 billion. In July 2022, the official integration of the two companies was completed.

Bread and milk

The importer and producer of milk and milk products Milky Group Bio occupies the seventh position with net revenues of over 316.8 million levs (42.27% growth). The company owned by Polya Dimitrova Peeva produces under the brands Sayana, Na Horoto, Naboru, Milki Dream, and also wholesales raw materials for the food industry - dry and fresh milk, vegetable and couverture oils, cocoa products, whey and milk protein concentrate, liquid and dry cream, milk substitutes, also imports cow butter, frying fat, semi-hard and soft cheese, etc. The production plant is in Haskovo, and the company warehouse bases are in Sofia, Varna, Burgas, Pleven, Yambol and Haskovo.

In September of last year, it was reported that the Greek dairy producer Delta Foods had agreed to sell 100% of the shares in its Bulgarian subsidiary United Dairy Company (OMK) to Tirbul, a subsidiary of the Greek Hellenic Dairies. The share purchase agreement was not announced, but considering OMK's EBITDA of 10 million levs for 2021, it is at least 80 million levs.

Another producer in the dairy industry - "Cremio" (23rd place), reports over 40% growth in revenues for 2022, which exceeds 120.7 million levs. The company produces dairy products under the My Day brand, as well as vegetable creams for confectionery and cooking. More than 60% of the production is sold on foreign markets. The sole owner of the capital is Georgi Ganovski.

Goodmills Bulgaria (18th place) once again enters the top 50 with over 144.4 million levs in revenue for 2022 (15.5% growth). The company dates back to 1986, when the N. Y. Vaptsarov State Mill Combine was established in Sofia. After 1989, the company was owned by the Greek milling holding Loulis Group, which renamed the enterprise Sofia Mel and imposed the trademark of the same name. In May 2009, the company was bought by the Austrian LLIEuromills.

The increase in revenue is a result of the sharp jump in wheat prices due to the war in Ukraine and the subsequent jump in international stock markets. Wheat forms about 80% of the cost of our production, the other main components are the cost of electricity and labor costs. Retail prices were not increased, as a zero VAT rate was introduced for flour, which relieved the end consumer," commented Stefan Hristoskov, manager of Goodmills Bulgaria, for Kapital.

"The increase in revenue is a result of the sharp jump in wheat prices due to the war in Ukraine and the subsequent jump in international markets. Wheat forms about 80% of the cost of our production, the other main components are the cost of electricity and labor costs. Retail prices were not increased, as a zero VAT rate was introduced for flour, which relieved the end consumer," commented Stefan Hristoskov, manager of Goodmills Bulgaria, for Kapital.

Beers and more beers

In 2022, 5.23 million hectoliters of beer were sold in the country against 5.15 million in the previous year. In contrast to the slight growth in volume, capital investments in the industry last year reached a record 66 million levs. Most of them are for green innovations, commented Ivana Radomirova, executive director of the Union of Brewers in Bulgaria, for Kapital.

"The pandemic has hit the beer sector very hard due to pub closures and restrictions on tourism. High inflation has also had a significant negative impact. Starting from energy prices, the price of malt and other raw materials, the supply of commercial assets such as umbrellas, refrigerators, kegs and others, these factors were a huge challenge for beer producers. All this, together with the consequences of the war in Ukraine, slowed down the recovery process after the pandemic," Anton Karlov, Director of Legal and Corporate Affairs of the owner of Kamenica, commented in an interview.

In 2022, Carlsberg Bulgaria (10) maintains its leading position in the sector with a 233 million levs turnover, with a great distance from its competitors. The company invested 23 million levs in a new production line for 0.5 liter cans at the brewery in Blagoevpad. It has a production capacity of 40,000 units per hour and allows the brewing company to produce beer in cans in Bulgaria, instead of importing them from neighboring countries.

Revenues over 144 million levs give Zagorka 19th place in the ranking. The company reports a 15.5% increase in sales, but its profit is decreasing.

The third multinational beer company - Kamenitsa is in the 22nd position in the sector top 50 with revenues of almost 124 million levs. "Our biggest sustainable investment in 2022 was the construction of the solar park on the territory of our brewery in Haskovo , which is in the amount of 1.45 million euros. This is the first solar park in the Molson Coors group in Central and Eastern Europe. For the past year, we also have over 10 million levs capital investments in modernizing our brewery, its processes and systems , as well as on the market in tangible assets", commented Vladan Matich, executive director of Kamenitsa , for Kapital.