KARPATY HERBAL TEA CO.
Verified
2016
Ukrainian Craft Herbal Tea — From Field to Export
Zakarpattia region
Production
ABOUT THE COMPANY
Karpaty Herbal Tea Co. is a Ukrainian craft herbal tea producer founded in 2016 in the Zakarpattia region. The company specialises in three product lines: wild-harvested herbal blends (mint, melissa, chamomile, linden, St. John’s wort), functional superfood teas with Ukrainian berries (sea buckthorn, rosehip, cranberry, goji), and premium author’s blends with honey and spices (cinnamon, cardamom). All raw materials are sourced from certified Ukrainian farms and Carpathian wild-harvest zones. Current production capacity is 120,000 units per month across all formats. Products are sold in Ukraine through retail chains, HoReCa, and online. The company is now ready to enter export markets with a fully prepared product line.
Founded | Capacity | Export Status | Employees |
2016 | 120,000 units/mo | Ready — no exports yet | 28 people |
Investment
The point: how much, for what, and on what terms.
Amount (€)
€ 300,000 — € 600,000
Investment Type
Minority equity / Strategic investment (up to 25%)
Company Valuation
€ 1,500,000 — € 2,200,000 (pre-money)
Preferred Investor
Impact investor / EBRD-type fund / Diaspora investor / Health & wellness strategic
Expected Exit
Strategic M&A or buyback in 4–5 years
Use of Funds:
- Automated production line upgrade — sorting, blending, packaging (€ 180k)
- EU organic certification (EU Organic Regulation 2018/848) and BRC Food Grade (€ 70k)
- Export market entry — Germany, Poland, Netherlands: distribution, marketing, compliance (€ 180k)
- Working capital for export order fulfilment and inventory buffer (€ 70k–170k)
Key Investor Terms:
- 1 board observer seat (non-voting option available)
- Quarterly financial and operational reporting
- Annual independent audit
- Approval rights on strategic decisions above € 40k
Partnership
The point: who we need and how we grow together.
Looking for
Distribution / Joint Venture
Partnership Type
Distribution partner / Health & wellness retailer / Strategic JV
Target Region
Germany, Poland, Netherlands, Austria
Partner Role
Access to health food retail chains, organic stores, HoReCa, e-commerce
Economics
Revenue share: 15–22% of ex-works price; regional exclusivity available
Timeline & Format
Pilot order (500–1,000 units per SKU) → 12-month contract → 3+2 year deal
What the partner gets:
- Regional exclusivity upon reaching agreed annual volume
- Private label / white-label option under partner’s own brand
- Ukrainian origin storytelling and Carpathian brand materials for EU market
- Direct access to product development team for custom blends
Available for other regions:
Region | Key Markets | Notes |
🇺🇸 North America | USA, Canada | FDA registration needed; strong Ukrainian diaspora channel |
🌎 South America | Brazil, Chile | Growing wellness & superfood trend; herbal tea market expanding |
🌏 Asia | Japan, South Korea, UAE | Premium wellness segment; Halal cert available for MENA |
Technology / Expertise
What we need to scale.
Needs
Production / Digital Traceability
Type
Production automation + AI quality control + Smart packaging
Goal
Cut production cost by 15%, achieve EU organic compliance, scale to 300,000 units/mo
Format
Technology licence / Service contract / Partnership
Format
Fee + Success fee (% of cost savings) / equity option
Specific needs:
- AI-powered optical sorting system — camera + machine vision to detect foreign objects, discoloured leaves, and stem fragments in dried herb batches
- Automated blending and dosing line — robotic weighing and mixing of multi-component herbal blends with ±0.5g accuracy, replacing manual batch assembly
- Modified Atmosphere Packaging (MAP) line with nitrogen flushing — extends shelf life from 12 to 24 months, critical for export logistics
- IoT drying and storage monitoring — sensors for temperature, humidity, and CO2 across herb drying chambers to preserve essential oil content and prevent mould
Story & Uniqueness
Founded by the Kovalenko family in 2016 in Uzhhorod, Zakarpattia. Started as a small wild-harvest operation on 3 hectares of Carpathian meadows. Today — 14 SKUs across three product lines, sold in 400+ retail points across Ukraine including Silpo, Novus, and Eko-Market.Read more
The only Ukrainian herbal tea brand with a dedicated R&D lab for functional blend development. In 2024, the company won the Ukrainian Food Award in the Health & Wellness category. Products are fully natural, with no artificial additives or preservatives. Ready for EU organic certification within 6 months.| Product Line / SKU | Format | Units/mo | Key Channel |
| Herbal Blends — Mint, Melissa, Chamomile | 25g pyramid / 40g loose | 35,000 | Retail, HoReCa |
| Herbal Blends — Linden, St. John’s Wort | 25g pyramid / 40g loose | 20,000 | Retail, Pharmacy |
| Functional — Sea Buckthorn + Rosehip | 30g pyramid / gift box | 22,000 | Retail, Online |
| Functional — Cranberry + Goji (superfood) | 30g pyramid / gift box | 18,000 | Online, HoReCa |
| Premium — Honey + Cinnamon + Cardamom | Gift box / 50g tin | 15,000 | Premium retail, Gift |
| Seasonal & Limited Editions | Gift box sets | 10,000 | Online, B2B gifts |
1. Financial Snapshot
Revenue (current year)
€230k
EBITDA Margin
€44k
19.1%
CapEx
€40k
OpEx
€146k
Net Cash Flow
+ €18k
Export Revenue Share
0%
Units Sold
1,360,000
Key Takeaways:
- Revenue CAGR 2022–2024: +45% — strong organic growth driven by health & wellness trend
- EBITDA margin growing consistently — now above 19%, approaching premium food benchmarks
- Positive cash flow since 2023 — business self-sustaining without external funding
- Zero export revenue to date — full upside is untapped, growth constrained only by export readiness
- Units sold growing 74% over 2 years — domestic demand fully validated
2. Unit Economics
Does the company make money on a single jar of product?
Metric | Herbal Blend (pyramid) | Premium Spice Blend (tin) |
Pack Weight / Format | 25g / 15 pyramids | 50g / tin box |
Cost of Goods (€/unit) | € 0.55 | € 1.40 |
Wholesale Price (€/unit) | € 1.20 | € 3.50 |
Gross Margin | 54% | 60% |
Logistics to EU (€/unit) | € 0.08 | € 0.10 |
Export Packaging (€/unit) | € 0.05 | € 0.08 |
Contribution Margin (export) | 48% | 55% |
Verdict: Scalable for export — YES
- Contribution margin above 48% comfortably absorbs EU distribution and marketing costs
- At 300,000 units/month production scale, COGS drops an estimated 18% (economies of scale)
- Premium tin and gift box line (honey + spices) carries 60%+ margin — ideal for EU specialty retail
- Superfood functional line (goji, sea buckthorn) perfectly positioned for EU health & wellness trend
3. Export Readiness Score
Can this company enter a new EU market in 3 months or does it take 2 years?
Criteria | Status |
Packaging meets EU labelling standards (multilingual, allergens, weight) | IN PROGRESS |
Shelf-life minimum 18 months for international shipping | YES |
Stable supply: minimum 5,000 units per SKU per shipment | YES |
EU food safety compliance (no prohibited additives) | YES |
EU Organic Certification (EU 2018/848) | NO |
BRC Food Safety Grade A | NO |
EAN / GS1 barcoding on all SKUs | YES |
International cargo insurance | YES |
EU-based logistics partner (3PL) | IN PROGRESS |
Distribution partner in target EU market | NO |
Export Readiness Score: 5 / 10 — Pre-export stage, product ready, compliance in progress
The product is fully market-ready in terms of quality and shelf-life. Key gaps to address before EU retail entry: EU organic certification (~6 months), BRC audit (~4 months), and EU-compliant multilingual labelling. HoReCa and organic specialty stores (Alnatura, Denn’s, Bio Company) can be approached in 3–4 months. Full retail chain entry: 6–8 months with investment.
4. IP / Brand Assets
We don’t invest in a brand that might lose its name or market tomorrow.
Asset | Status |
Trademark ‘Karpaty Herbal Tea Co.’ | ✅ Registered in UA; EU (EUIPO) filing in progress |
Proprietary blend recipes (14 SKUs) | ✅ Documented, company-owned, R&D lab protected |
Wild-harvest sourcing agreements | ✅ Exclusive zones in Zakarpattia (5-year agreements) |
Packaging & label design | ✅ Original Carpathian artwork; EU-adaptation ready |
Brand Book / Storytelling | ✅ Developed (Carpathian wilderness, handcraft, wellness) |
Awards | ✅ Ukrainian Food Award 2024 — Health & Wellness category |
Digital presence | ✅ Website EN/UA; Instagram 22k; iHerb.ua listed |
5. ESG / Sustainability
Critical for EU funds, institutional investors, and major retail chains.
Criteria | Details |
Raw Material Origin | 100% Ukrainian herbs; 60% wild-harvested (Carpathian), 40% certified farms |
Environmental | Zero artificial inputs; biodegradable pyramid bags; recyclable tin packaging |
Social Impact | 28 permanent jobs + 45 seasonal pickers in rural Zakarpattia; wartime employment retained |
Traceability | Batch-level herb sourcing records; QR code traceability planned for 2025 |
CO2 Footprint | Low-energy drying process; CO2 measurement initiated 2024; target: -20% by 2027 |
ESG Fund Eligibility | Supports rural livelihoods; Carpathian ecosystem-friendly; aligns with EBRD Green criteria |
6. Regulatory Status
ISO 22000
HACCP
Funds secured — but can you actually sell?
Certificate / Licence | Status | Markets |
HACCP | ✅ Active | All markets |
ISO 22000:2018 | ✅ Active | EU, CIS, MENA |
Ukrainian food production licence | ✅ Active | Ukraine |
EU Food Law compliance (no prohibited additives) | ✅ Confirmed | All EU markets |
EU Organic Certification (2018/848) | ⏳ In progress (Q3 2025) | EU Organic retail |
BRC Food Safety Grade A | ⏳ In progress (Q4 2025) | EU Retail (REWE, Aldi, Lidl) |
Halal Certificate | ✅ Active | UAE, Malaysia, MENA |
FDA Registration (US) | ⏳ Planned 2026 | USA, Canada |
What grows after the deal — volume, quality, export, brand.
Phase | Action | Timeline | Outcome |
🚀 1 | EU label redesign + multilingual compliance | Days 1–60 | Legal to sell across EU |
🌿 2 | EU Organic Certification (Ecocert) | 6 months | Access to organic retail channel |
🤖 3 | Automated sorting + blending line installation | 4 months | Capacity: 300,000 units/mo |
🏪 4 | Entry into German organic retail (Alnatura, Denn’s) | 5 months | € 20k/month revenue |
📦 5 | MAP nitrogen packaging line launch | 3 months | Shelf life: 24 months |
🤝 6 | Distribution JV with EU health & wellness importer | 6 months | Exclusivity in 3 countries |
🌐 7 | DTC e-commerce (EU diaspora + direct consumer) | 4 months | € 8k/month online revenue |
🏅 8 | BRC Grade A + international wellness awards | Q4 2025 | Premium retail credibility |
💰 9 | Series B prep / strategic M&A | Year 3–4 | Exit or next round |
Post-Investment P&L Forecast:
Metric | 2025E | 2026E | 2027E |
Revenue (€) | € 380k | € 590k | € 880k |
EBITDA (€) | € 76k | € 136k | € 220k |
EBITDA Margin | 20.0% | 23.1% | 25.0% |
Units Sold | 1,900,000 | 2,900,000 | 4,200,000 |
Export Share | 30% | 50% | 65% |
