Money on grass: who earns billions on bioadditives

Production of dietary supplements is a very profitable business. What can afford Russia's largest player on this market with the revenue of 7.4 billion rubles?
Origin source
"And now we're at it vedem, but this union," - pilot six-seat Eurocopter happy to demonstrate the possibility of a foreign helicopter smartly maneuvering among the peaks of the Altai foothills. From the city of Biisk, where the plant "Evalar", to the company's plantations fly a maximum of 20 minutes. By car to get to. The "Evalar" in the mountains more than 1000 hectares of land, which is grown over 30 species of medicinal herbs. "Not to say that their raw materials more cheaply obtained, but definitely better quality," - says CEO and founder of Larisa Prokopyeva company.

"Evalar" - the largest producer of dietary supplements in Russia, last year its revenue totaled 7.4 billion rubles, while the cost of production of 1.5 billion rubles. Larisa Prokopyeva says profitability of 20% - a lot of money is necessary to invest in advertising (in 2013 "Evalar" has received 1.8 billion rubles of net profit). However, in the first six months of 2014 the share of bio-additives "Evalar" in the Russian market, according to DSM Group estimate decreased from 20% to 17%. If in 2013 the share of the top five companies accounted for dietary supplements Altaiilos almost 11% of all dietary supplements sales in Russia, in the first half of 2014 - 5.3%. The leader loses power?

Under pressure

Judging from the product catalog "Evalar", its effect on the human almost limitless: "Beauty", "brain", "to the heart", "renal", "men", "for weight control and weight loss," just " for women "and simply" men "- a total of 200 items of tablets, capsules, tinctures, tea bags and even coffee.

In the mid-2000s, the Federal Antimonopoly Service (FAS) has accused the company of unfair competition due to the acquisition of exclusive rights to the name "Red Root", and in 2008 it found Badakhshan mold. In April 2009, FAS found inappropriate drug advertisements, "Transit", "create the impression" that the BAA has healing properties, improper advertising of two dietary supplements company was recognized in May. In 2011 FAS accused "Evalar" in violation of the law "On Advertising": the promotion of "Glycine Forte Evalar" "impression" that BAA is lekarstvennym means. In the same year the company received from the FAS injunction to stop the spread of false advertising of dietary supplements "Insulin Forte Evalar" and "AD minus" from which the consumer could be concluded that these dietary supplements are treated. In February 2013 a warning, the company received from Rospotrebnadzor.

"Ovesol" - removes toxins, prevents the formation of stones, "Endocrinol" - the apotheosis! - Adjusts the level of hormones, - listed in May 2013 at a meeting of the State Duma deputy Anton Belyakov. - "Triad Evalar" - about it we are with you every day talk on all TV channels continuously - has parazitogonnym effect, although it is proved that it is not. Finally, aerobatics, "Shiitake" - cancer prevention. Well conscience ?! "

"Evalar" really saves on promoting their dietary supplements.

According Adindex data, the company spent on advertising in 2013, 2.5 billion rubles - only 43 million less than Coca-Cola, and took the 21 th place in the ranking of the largest Russian advertisers. The State Duma discussedI bill to tighten advertising of dietary supplements. Belyakov proposed to ban it completely. According to the former deputy (in September 2013, Anton Belyakov became the Vladimir Region in the Federation Council representative), his bill received positive conclusion of the government and the relevant committee, but then the discussion was connected to the "professional community" and after consultation appeared a compromise. The amendment to the law "On Advertising", adopted in July 2013, ordered the producers and sellers of dietary supplements to accompany the advertising information that these tools are not a cure.

Larisa Prokopyeva to claims regulatory concerns calmly: "We are the leaders, why at us and attack. If we broke, it is not because they wanted to do it, but because there was no clear law. Supplements in Russia - a new product, so how our company lives so much with her and fight. "

In the footsteps of "Herbalife"

Year 2000 was the most popular items in Russian pharmacies - "Hawthorn tincture." One hundred milliliters of a fortress 70 degrees are 6-8 ruLei are not subject to any excise or VAT. You can buy at any time of the day, but a particular demand in the morning - with a hangover. Altai company "Evalar" also decided to make a popular product. Stingy around tons of hawthorn and contacted the Moscow office of one of the largest producers of liqueurs. "Hawthorn? - Surprised in Moscow. - Who told you that we have it in tincture use? We colorings suffice. "

Assembled hawthorn went to the warehouse to better times, but after a year "Evalar" released his own hits - "The infusion of cinquefoil" for the joints and spine.

"In contrast to the" tincture of hawthorn "of our tincture really treated, the feelings, of the entire country", - says Prokopiev.

With the product in the company's guess, but wrong in another - did not register the original name, so soon cinquefoil tincture produced about a dozen companies.

Business founder "Evalar" took in the early 1990s, when the "Federal Research and Production Center" Altai ", in which Mr.zrabatyvalis components and fuel for the strategic missile systems, conversion began. In the closed area was created a few dozens of companies for the production of civilian goods. Senior Researcher NPC Larisa Prokopyeva colleagues arranged the production of chewing gum and, as they say, it sold quite well until the market itself trampled by foreign corporations. Not able to compete with foreign and cosmetics which aspiring entrepreneurs have tried to produce the equipment leased from the Polish company Pollena.

What to do? "In pharmacies empty, even chamomile was not, - says Larisa Prokopyeva. - We have established rather quickly briquetting of herbs - chamomile, calendula, series ... "In 1993, her company received a patent for industrial processing technology Altai mummy - the drug was the first Bud" Evalar. " Then came Supplements for weight loss "Ankir-B" of food microcellulose that Prokopyeva bought at one of the defense industries of Biisk. Demand has been preheated saJamie foreign dietary supplements method of network marketing. As Prokopiev said everyone knew about 'Herbalife', could only do something similar, but cheaper and more efficiently. "Evalar" did - and the success was enormous.

In 1996, the company sold products to 17 million rubles, the following year its revenue doubled. In 1998 it rose to 78 million rubles in three years amounted to 138 million rubles. In the early 2000s, when the "Evalar" supplements sold more than 50 titles on the territory of the defense enterprises of the company it was tight. Larisa Prokopyeva, which owned 50% of shares of "Evalar", decided to set up its own production base. But I fear that leaving the perimeter of the SPC will make the company vulnerable. "Within the defense industry, we were safe, but the fence someone might be tempted to pick us cheaply, and someone - the temptation to sell its stake," - she explains buying shares from former colleagues-partners.

As a result, Prokopyeva became the sole owner of the company and began to build a plant on the outskirts of Biisk. The company earned in 2004, it cost 450 million rubles. Revenue & laquo; Evalar "at that time was almost 2.5 times higher. In the same year the company began to build the resource base. Own raw materials the company has secured 30%, the rest is purchased abroad - herbal extracts, vitamins, amino acids. The plant herbs are cleaned, dried, exposed to temperature and vacuum is drawn from vegetable extract, which for a given formulation mixed with other components automata obtained mixture is converted into tablets and capsules, are packaged and shipped for sale. Plant Larisa Prokopyeva openly boasts: "We have German equipment, the French. In Chinese, we look down. "

Pharmaceutical sense

A few dozen kilometers from Altai plantations "Evalar" on 800 hectares of land grows more than 70 species of medicinal herbs Company "Biola." The main owner of "bioliths" Valentine Burkova began to produce dietary supplements at the same time with Larissa Prokopieva and now produces 400 different products, two times more than the "Evalar." But inthe company handle much more modest - about 100 million rubles a year. Why such a gap? Different starting conditions, Burkova explains. "Evalar" was created at a defense company and the first and subsidized by them. This, of course, help. Nevertheless, all that they have done and are doing is worthy of respect, "- she said.

Foundations of Marketing Larissa Prokopyeva cognizable courses, which in the early 1990s, were organized at the NPC "Altai": "They are unpretentious, we explained how to promote the product." The founder of the "Evalar" was an apt pupil. Its products is promoted through pharmacies, ignoring the methods of direct sales, who preferred to other manufacturers. "Evalar" in each of its advertising message gives meaning to their pharmaceutical Badam, they were originally built on this a strategy - says David Melik-Guseinov, director of the Center for Social Economy (expertise in the field of medicine and social services). - Therefore, "Evalar" in terms of marketing is now number one in Russia. "

Some company names Prokopieva released in two forms:ak drug and a dietary supplement. The names are almost the same: "Ateroklefit" and "Ateroklefit Bio", "Red Root" and "Red root plus", "Chi-Klim" and "Chi-Klim Alanine". Designs of packages is very similar. "They register a drug that produced, relatively speaking, two packs per year, and the same name BAD - outraged MP Anton Belyakov. - Promote the drug, and mass sale have not undergone clinical trials supplement. "

The owner of the "Evalar" recognizes that the dietary supplements that are in demand, in case of successful clinical trials reclassified as drugs.

But the methods of production of advertising will be different: in one case, they say - "treats" in the other - "contributes to the normal state."

"Farmatsevtichnosti" brand of the same name, and adds a network of pharmacies. Pharmacy business as Prokopyeva says, the "Evalar" appeared by chance. In the mid-1990s Wholesalers paying now for dietary supplements medicines for implementation of which the first pharmacy was opened in Biysk. "The company has grown,rebovalos more cash, so grew the number of pharmacies - entrepreneur explains. - In fact, this is not the best business - heavy and low-margin, within 6%. " Nevertheless, under the guise of "Evalar" 25 pharmacies now operate, including six - in Moscow. One of them in September 2011, was opened on Tverskaya Street, where the space rental price is very high and retailers tend to keep shopping to maintain the brand image.

Daughter Larissa Prokopieva Natalia in 2009 headed the Committee for the Control of dietary supplements, non-commercial partnership "Manufacturers of dietary supplements, therapeutic and preventive nutrition" (it is governed by a Board of Directors "Evalar" and the Moscow representative office of the company). Son of Alexander in December 2011 was elected to the State Duma on the list of "United Russia".

He is now a member of the Duma Committee on Health and the head of the subcommittee on the improvement of medical education, the development of science and new technologies in medicine. "We can not say that he is lobiruet interests of the company, we do not need special laws. He is trying to improve the legislation for the entire market, "- says Prokopiev.

Part of the profits from the food supplements owner "Evalar" invested in the media business. In 2013 she bought from a local businessman Anatoly Bannykh Altai issues of "Komsomolskaya Pravda", "Arguments and Facts", "Moskovsky Komsomolets" and several city newspapers and popular news sites in the Altai. But the main investments are in the expansion of production. Next to his business Biisk Prokopyeva builds another plant, which will produce 6 billion tablets and capsules per year - four times more than the "Evalar" now produces. Price question - 3 billion rubles. Launch of the new plant is scheduled for 2017. However, by the time the market will be?

Defensive reaction

The Russian market of food supplements, estimated at 35 billion rubles, was a period of stagnation. It's hard to say what impact - the saturation of demand or advertising restrictions. "With the introduction of new restrictions we had to replace the entire creative in CAMPAIGNSAME, and the result is absolutely empty rolls - complains a top manager of a Russian producer of dietary supplements, one of the closest competitors, "Evalar." - Naturally, it affected the sales volumes for the year to drop everything. "

In order to absolve themselves of the responsibility for the promotion of dietary supplements, the company "Evalar" began offering drugstore chains manufacture of dietary supplements under their brand names (with whom negotiations are under way, Larisa Prokopyeva yet does not open). Changed and advertising.

Now the emphasis is not on the healing properties of dietary supplements, and on how they are produced "by the pharmaceutical company" Evalar. "

In principle, the company has the right to do - its production is certified according to the international GMP standard. This certification, according to the Ministry of Health orders since 2000 are required to pass all the Russian manufacturers of medical products and pharmaceutical substances. "Evalar" is now producing 11 kinds of drugs, but the marking "of GMP - quality assurance" is the packaging of all its dietary supplements.

According to DSM Group estimates, in the first halfin 2014 the volume of purchases of dietary supplements pharmacy chains increased by 14.6% in value (up 14.5 billion rubles), but fell by 2.2% in the number of packages. Retailers are trying to make money on more expensive products, including a high proportion of imports.

In 2013, the share of foreign manufacturers in the Russian dietary supplements market has grown from 33% to 38%. For six months in 2014 Bayer sales of dietary supplements have grown by 448%, Solgar Vitamin and Herb - on 93,4%, Richard Bittner - 50%. Chinese corporation Bing Han (turnover - $ 800 million) in five years is hoping to occupy 25-30% of the Russian market of biologically active additives. In the Altai Republic Bing Han plans to lease 4,000 hectares of land for planting, "Imperial" ginseng. The raw material will be processed in China and then sold in Russia.

"Evalar" The answer? Export development. In March 2014, the company Larissa Prokopieva received GMP certificate of the National Sanitation Foundation for compliance with US protection for Badam, in July in the production passed the inspection of the Australian Drug Administration.

Abroad "Evalar" sells about 10% of production, is mainly in neighboring countries- Ukraine, Kazakhstan, the Baltic countries, but according to Prokopieva already significant revenues bring deliveries to Germany, USA, Czech Republic.

Competitor "Evalar" does not exclude that the advertising of dietary supplements in Russia in general can be banned - as, for example, in Kazakhstan. If this happens, the producers of food supplements have to switch to medicines and cosmetics. "Our production is certified according to GMP, producing medicines or dietary supplements - for us not much difference - says Larissa Prokopyeva. - Let's go to the place where profits will be. "