The world consumes Hungarian food supplements: they have recently bought from their competitors

BioTechUSA’s legal predecessor initially imported the products of an American company to Hungary, then the Hungarian company took over the brand and product range. At that point the possibility of a name change arose, but in the end it was decided to leave the American brand at the end of the company name. There were mainly prosaic reasons for this: the procedure would have been expensive and complicated, but at the same time, the fact that the name refers to the original roots of the brand favored retention.

The first stores in the store network were opened in 2005, the logistics center was built two years later and in 2014 the Sada plant was completed. They currently employ more than a thousand people around the world, produce around 90 percent of the products they sell, and are also engaged in contract manufacturing.

They are constantly evolving, the range is also expanding. Managing Director Bálint Lévai – who, with his brother, Balázs Lévai, took over the management of the company from the founding father, Ferenc, in 2014, says, need to continually respond to customer needs: Nowadays, the basic expectation is not only that a product is sugar-free, but also lactose- or gluten-free, or even vegan. Also, they are by no means limited to athletes, but to those who value a healthy lifestyle, which is why popular products such as peanut butter are now available.

“The protein segment is still the strongest, but the different slices appear strongly, most of them the protein segment. Joint protection products are also very popular in Hungary, we can open up this market more and more. People are more aware, 15 years ago, for example, our consumers didn’t necessarily care and didn’t even spend it to protect their joints.”Bálint Lévai said.

Six years ago, the generational change took place beautifully, gradually, and smoothly. Bálint Lévai joined the family business in 2010, four years later he took over as CEO, giving him time to study and prepare. His brother, Balázs, has also worked for the company since 2010, he is the commercial director of BioTechUSA.

Perhaps the point is that the older generation can trust the next. Allow them to make mistakes, obviously within a controlled framework, because one can learn from it.

– He said. His father, Ferenc Lévai, is no longer involved in day-to-day operations and manages the company’s strategic investments and the modernization of the factory. Although online commerce is getting stronger as a result of digitization, BioTechUSA CEO says stores are worth maintaining, there are many who are still happy to shop in stores to this day. According to Lévai, the most important thing is that the brand is strong enough because customers are consciously looking for the company’s products, either online or offline.

Although several retail chains distribute their products, the revenue they generate is not yet significant. In Hungary, franchise stores and webshop purchases generate the most traffic. Abroad, sales are highest in France, Germany, Spain, Italy, Slovakia, Austria, Ukraine, Poland and Russia, but the Hungarian market is still the most dominant: the network of stores and distribution channels are the most extensive.

“In many ways this is our test market, because the brand is better known here, and if we bring out a new product, we can very well measure what it is capable of on the market. If something doesn’t work as much abroad, but it works here, then we know you have to work on it in order to build”Said Lévai, who said it was to their advantage in many ways that the company had been operating since 1999 and had been able to raise capital.

“If we were to start today, we probably wouldn’t be without outside equity participation. We were able to develop well in our own markets, better than many people, so we are also confident that what we have produced will not be taken away from them.“Said the manager of the company, who also pointed out that the economic crisis caused by the corona virus also affected them. In Hungary, although store turnover decreased, revenue continued to be generated, but abroad, store network sales fell to almost zero.

First our European markets collapsed, then everyone else. There has never been an example of this

He said, adding that at the beginning of the summer, however, they experienced a serious recovery and crisis here or there, they had never been in a situation where it would have been an overnight problem to manage wages.

Takeover offers are received from time to time from financial and strategic investors, but are routinely rejected.

Due to its increasing size, the number of potential buyers is shrinking, but the attractiveness of the business is not diminishing. The emphasis in the life of the company is on protecting the environment, they try to use as little plastic as possible for packaging and also optimize logistics so that delivery is as efficient as possible.

“Businesses are getting greener, but it is actually also in an economic interest for a business. It would be more economical to deliver our products not in a plastic box but in a paper bag. Another question is whether the consumer will buy this. We are connected with the needs of the consumer“Said Bálint Lévai in relation to this, adding that several of their products are already available, which are sold in paper bags made with less plastic.

The original of the article appeared in the publication of the Budapest Stock Exchange, BSE50. BSE50’s media sponsor is Portfolio Group.

Cover image: BSE50