Hungarian food supplement company loved worldwide buys biggest competitor

The Hungarian-owned food-supplement company, BioTechUSA has become the market leader in its category in Hungary, and it is also one of the most popular brands across Europe. Development never stops.

BioTechUSA used to import the products of a U.S.-based company to Hungary. Later they acquired the brand and its product portfolio. They decided to keep the name, even though 90% of their products are now being made in Hungary. The company’s factory is located in Szada. Today, BioTechUSA employs over 1,000 people, and it is currently managed by CEO Bálint Lévai and Sales Director Balázs Lévai. The brothers took over the business from their father in 2014.

The franchise stores and their webshop generate the vast majority of their profits, but they work together with several retailers who sell their products.

The franchise is most extended in Hungary, which still remains the brand’s primary market. However, a considerable amount of their income comes from France, Germany, Spain, Italy, Slovakia, Austria, Ukraine, Poland, and Russia.

“In many ways, it [Hungary] is our test market. When we introduce a new product, we can test how well it will do on the market here. If something is popular here but not so much abroad, that is a good indicator to work more on the product. This is how we can develop.”

News had spread fast when BioTechUSA acquired their biggest local competitor, the also Hungarian-owned Scitec Nutrition, Portfolio writes. With this step, they ensured their market leader position in Hungary.

As Daily News Hungary reported earlier, BioTechUSA and Scitec Nutrition have long been among the top food supplement brands of the world. Scitec Nutrition was founded in the United States by a Hungarian bodybuilder in 1996. They opened their factory in Dunakeszi in 2009. The brand was later bought by a South African company, Ascendis Health.

Unfortunately, the negative economic repercussion of the novel coronavirus did not spare BioTechUSA either. The brand experienced a massive drop in demand in their stores abroad, and profits decreased somewhat in Hungary too.

“First, the European market crumbled down, then the rest. This has never happened before.”

Since then, there has been a boost around the summer. The brand is ready to focus on development again. They are working towards a more sustainable future. They are consciously using less plastic and more paper in their packaging, and they aim to optimise logistics too in order to make delivery as effective as possible.

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Source: Portfolio.hu