Balkan Herbs: from the wild to your teacup

“The Balkans are a special place. With four distinct seasons, the conditions for growing valuable herbs are ideal,” says Anton Kanchev, CFO of Balkan Herbs. Since 2013, this family-owned business creates herbal products with wild plants from the Bulgarian mountains.

A FAMILY BUSINESS

The company was founded by Anton’s wife, Theodora. But Anton himself is no stranger to the sector: “I used to work for a larger company that produced raw materials in bulk for bigger clients, so I knew the business. Today, even my cousin is handling sales and certification of our organic products. It’s still very much a family-run business.” They started out selling small quantities of raw materials to organic tea producers who created their own blends from the herbs.

Over time, the business steadily grew. In 2020, Balkan Herbs began negotiations with Sonnentor in Austria – Europe’s second-largest organic tea producer. This breakthrough led to a surge in turnover and firmly established the company in the European market.

FUNDING SUCCESS

In 2022, Balkan Herbs secured EU-guaranteed financing through the Bulgarian Development Bank. “Our first loan was €60,000 in 2022,” Anton says. “The funding has supported spectacular growth: turnover jumped to around €2 million last year. “Of course, several factors have played a role,” he reflects. “But we’ve always believed in our business. We prefer steady, step-by-step growth rather than expanding too fast – and the banks appreciate that,” he smiles.

STEP BY STEP

So, what’s special about herbal products? For starters, they are a big deal in Bulgaria. The nation is among the world leaders in herb production per unit of land, producing nearly three times as many tonnes of aromatic and medicinal plants as Spain. Herbal teas — or tisanes — are blends of dried fruits, flowers, spices, or herbs infused in water, often with proven medicinal benefits. “We have a collaboration with a botanical professor who develops recipes for our products. He has helped us creating specialised teas that can benefit individuals with heart problems, liver issues, and blood sugar,” says Anton.

Future-wise, Balkan Herbs are working on new product lines. “We’ve been working on including herbal powders for cooking and smoothies such as rose hips, nettle, and milk thistle powders. We started selling them on Amazon in the German market and in local stores here in Bulgaria,” says Anton. When asked if Balkan Herbs are planning to expand to other European markets, Anton reflects: ‘’We’ll see. Step by step.”

Location: Veliki Preslav, Bulgaria

Financial Intermediary: Bulgarian Development Bank

SME: Balkan Herbs

Sector: food & beverage

Number of employees: 27

Financing purpose: expansion

EIF financing: InvestEU

For further information about EIF intermediaries in Bulgaria, please refer to: http://www.eif.org/what_we_do/where/bg/index.htm