In 1992, I founded the Berta company. The name “Berta” is the beginning of the surname Berezhansky and the name of my wife Tanya. Quality goods were in short supply, so we started to do wholesale trade. It was food, juices, coffee, alcohol, household appliances, clothes, shoes. In other words, everything that was sold. After a year of work, I realized that it was more promising to deal with food. At that time, Ukraine lacked high-quality foreign products, so we started importing many well-known brands from Poland. Adopting the experience of our neighbors, we opened the first self-service grocery store in Lviv, Berta. It was a “wow” at the time and it was very popular.
How did you get started in the distribution business?
My story in distribution began when a friend of mine suggested that we sell Wrigley gum. At the time, I couldn’t even imagine that you could make a business out of gum, but I tried it anyway. In a month, we sold it for $3,000, then $10,000, then $100,000… Wrigley was the first brand in our portfolio that the company still works with today.
We began to systematize our business, as we already knew how to sell with the help of commercial agents, place orders, and build logistics. Then we started working with Nestle.
We also added international brands to our portfolio, including Ferrero, Kraft, and Mars. Each company gave us useful experience. Experimenting together, we became better.
At that time, there were many competitors in the market. How did you manage to achieve leadership positions?
Back then, there were a lot of competitors, there was “uncivilized” competition – they were dumping goods, dumping prices, and the manufacturers themselves did not know how to work properly. They believed that the more distributors in one region, the better. Only later did they realize that they needed reliable companies that had exclusive rights in specific territories with the same terms of cooperation.
Our company showed good results, high-quality work, and manufacturers expanded cooperation with us in new territories.
We have always understood that it is worth investing in the development of our employees. We were constantly learning and improving.
My working principle is “there is no limit to improvement!”. Therefore, I pay a lot of attention to details. Improving every small detail makes it possible to optimize processes and achieve efficiency in work.
And it is impossible to be effective without modern IT developments. We use the latest analytical, transport and logistics, and other software products. They allow us to reduce the amount of time required to select the product range, deliver it to stores faster, track the freshness of the product and the movement of goods from the manufacturer to the end consumer. If we have innovative technologies, we will be competitive and the best on the market!
My working principle is that there is no limit to improvement!
You have a fairly balanced brand portfolio. Do you choose who you work with and who you don’t
Yes, of course. There are many offers. You cannot embrace everything and everyone, you need concentration. That is why we try to work with leading international and Ukrainian manufacturers. Our partners are Nestle, Mars, Ferrero, Henkel, L’Oréal, Schwarzkopf and other food and non-food manufacturers. Today we have the largest portfolio of brands in Ukraine.
We have the largest portfolio of brands in Ukraine.
Are there any brands that you want to have in your portfolio but don’t have yet?
There are several brands with which we are negotiating. And I am sure that in the near future they will make the only right decision and give distribution to us.
In addition to distribution, Berta Group has many areas of expertise: logistics, importing, retail and others. What additional opportunities does this give your partners?
As part of our transformation, we have made logistics a separate business. Our logistics company UB1 provides services to us, our partners and other customers.
We are currently building the largest A+ logistics center in Western Ukraine with a total area of 43,000 m2. The first stage of 12,800 m2 has already been launched and the second stage is under active construction.
We have started to actively develop our import business. We are constantly looking for new products and goods that will be of interest to Ukrainian consumers. After all, it is important for us that they receive a wider selection of quality products in the most remote corners of Ukraine. Today, Berta Group’s partners are manufacturers from Austria, Germany, Poland, Romania and Serbia, to whom we provide a full range of services (distribution, logistics and access to all sales channels).
In the retail sector, we are represented by three chains:
“Blizenko” – neighborhood grocery stores,
“Chistenko – a chain of beauty and grooming stores,
“Image – a chain of perfume and cosmetics stores.
Having our own retail allows us to better understand the needs of our customers, make a more detailed analysis of different product categories and offer our partners a platform for experimenting with new products.
Therefore, any manufacturer who wants to promote their products on the Ukrainian market will receive the maximum range of services from Berta Group.
Do you need warehouse space? – You can rent it from us.
Do you need logistics services? – We also provide these services as a 3PL operator.
Do you want to cover the whole of Ukraine? – We can provide you with a national distribution model.
Are you interested in retail? – When have we ever turned you down for money?
How many people are currently working in your company? Is there a common value that unites everyone?
We currently employ over 2,200 people in the distribution business. These are 10 regions and 14 branches. If we take into account other businesses and partnership projects, it is more than 3500 people. We are open and honest with our partners, customers and employees. I believe that honesty is one of the main values in business.
The moral climate in the team is very important. We do our best to make people feel comfortable working at Berta Group and to give everyone the opportunity for professional and personal development. I am pleased that many employees have made a career in our company and have been developing with us for more than 20 years.
Honesty is one of the main values in business!
What awards are you most proud of during the company’s operations?
We were the first Ukrainian company to join the European Trade and Marketing Association (ESMA), which brings together many manufacturers and distribution companies in Europe. This is a very useful experience for us to understand the trends in the FMCG market and project a vision of what business in Ukraine will be like in the coming years.
In September 2018, we received the ESMA Distributor of Excellence award for the best distribution success story presented at the organization’s annual conference in Madrid.
ESMA is a high-quality platform for establishing communications with European manufacturers in order to expand the brand portfolio with import contracts.
Also, in 2017 and 2018, we received an award from Trade Master Group as the best distribution company in Ukraine. Trade Master Group determines the winners by surveying more than 300 manufacturers. It is, of course, very pleasant and motivates us to work even better.
What is more important to you: the way or the result?
For me, the result is very important, but the pleasure of the process is no less important. I am convinced that if you do everything with love, creating additional value for people and new jobs, you will definitely get the desired result.
I am a creative person and have a creative approach to business. Therefore, it is important for me not just to make money, but to make it while having fun.
It is important for me not just to make money, but to make it while having fun
Do you have a rule on how to balance work and personal life?
There is only 100% of the time you can devote to family, work, parents, friends, travel, hobbies, etc. It’s up to you to decide how much time and what to spend. Everyone chooses for themselves, but everything should be harmonious. The main thing is to set priorities correctly and live in a way that makes you feel happy.
The main thing is to set priorities correctly!
Alexander, as far as I know, your business interests also touch on other areas, such as the restaurant business, hospitality, consulting, show business?
Indeed, I have interesting partnership projects that broaden my horizons and allow me to diversify my business. I like to experiment in other areas and gain new experience by working with partners, each of whom is a professional in their field.
What advice do you have for young people who want to start their own business?
Don’t hesitate and move forward. Even if you make a mess, it’s rewarding, even if it’s expensive. I have had not only successful projects, but also lost money and gained experience, but I have no regrets. A partnership in business is almost like a successful marriage, so it’s better to be lucky the first time.
A partnership in business is almost like a successful marriage, so it’s better to be lucky the first time.