The history of QuotTandemВquot From Trabant to luxury sausages

The 30-year anniversary of "Capital" is in 2023. We take this opportunity to share success stories about companies that have overcome adversity to grow as we celebrate the newspaper's birthday.

To describe their accomplishments and the business climate in our nation, we have chosen companies that are reputable, from a variety of industries, and with a diverse ownership. The family-owned meat products company began as a sandwich microbusiness 30 years ago and has since expanded into a reliable production with two factories.

"Tandem" navigates the Winter of Vienna while keeping costs under control and doing everything in marks, as well as the financial crisis. The second generation has smoothly transitioned into management, and there are plans to expand the business internationally.

the 8th day of 1993. The first day of business for the meat processing company "Tandem-V" in Sofia.

There was a production of 10 kilograms of skewers and 30 kilograms of minced meat. Six people work in the beginning, including the owners, the brothers Kiril and Todor Vatevi, one technologist, and three assistants in a rented building.

Thirty years later, "Tandem-V" produces about 10 tons of product per day, employs 177 people, generates more than BGN 27 million in revenue, and will rank among the top 10 meat processing businesses in the nation in terms of turnover for 2021. Before the creation of "Tandem-V," the brothers Kiril and Todor Vatevi knew nothing about the business of selling meat products. [[img:4440706]] Home: sandwiches with a mortgage loan.

As the head coach of the junior national wrestling team, Kiril Vatev has devoted his life to sports and does not consider doing anything else. Nevertheless, the universe has other ideas.

"After giving my all to my coaching work, the "Levski Spartak," which I founded, lost a golden generation to another coach. I had spent ten years developing this generation, and although I was seeing results, no one was keeping track of them, so I decided it was best to leave the sport, he recalls.

He acknowledges that, when he left his position as a coach, he had no idea what life was like outside of the gym and that, at the time, his financial situation consisted of one Trabant and his last salary. He played the role of the "blind grandmother" for two years while experimenting with different business ventures.

In addition to opening a cafe in Byala Slatina and working in the fields in Greece with his brother, he sold clothes on consignment and was well-versed in combat. When the two brothers get back to Sofia, they decide to make sandwiches.

Due to the fact that the sandwiches are made on-site by the staff at each location, the main benefit of the venture is that it was previously unheard of as a business. Owners of cafes and bistros therefore appreciate the idea of getting a finished good.

The brothers' living in an apartment, their lack of working capital, and the fact that their parents' apartment in the "Obelya" district of the capital serves as the only source of security for the banks are all disadvantages. They borrow money, put up the family house as collateral, and purchase three refrigerators, a sausage slicer, manual packaging tools, and raw materials.

Their workday begins at five in the morning when they purchase fresh bread from the oven, and it continues as they load the other necessary items and make the sandwiches. The Trabant, who has been by their side throughout, assists them as they begin delivering them to the restaurants.

"In all of our trying times, when we wanted to give up and throw in the towel, dad's encouraging words, his shining memory, kept us going. He used to say things like, "I'm proud that with these two hands—he was a builder—I made this apartment. If you misplace it, the blade will be yours.

Give it to me. According to Kiril Vatev, "And that's how it began.".

The brothers' business took off, and sales increased after they were officially recognized as sole proprietors. They had to change course, though, because of an unanticipated incident.

We were procuring the sausages for the sandwiches from a recently opened private workshop at the time. After we had lined up one day, the owner drove us away.

We need to leave because, according to him, "we shop every day" and "apparently work a lot and get very rich.". The absurdity of him refusing to sell to clients who give him a high turnover astounded us.

As Kiril Vatev recalls, "we came to the conclusion that since someone with such thinking could create a similar production, we could do the same. As a result, "Tandem-V" was established in 1993.

A technologist with two brothers who were enthusiastic about their jobs. three helpers, as well.

The initial production consisted of 10 kg of skewers and 30 kg of minced meat. "It's unbelievable, but when we first started, we had no way of distinguishing between beef and pork.

We used a dough mixer that we had to transport from Novi Iskar through a channel using a piece of metal that cuts hands because we lacked a professional mixer. The weather was wet.

When we finally got it in the bus, my brother and I looked at each other and he said, "As soon as we cross this canal, we'll make it, you know," according to Kiril Vatev. Starting in a rented room and sitting in the chair of the capital plant "Iskra," "Tandem-B" produces 30 kilograms to 3 tons of material per day.

In plates and clear stretch film, Vatevi packaged the first batches of mincemeat before heading to the store. First there was a rejection, then there was another.

They made the risky decision to not immediately request payment and instead handed over the mincemeat to a vendor. Because "the minced meat disappeared while putting it on the shelf," they were told by the shop owner the following day that they had neglected to leave a phone for ordering.

The initial 30 kilograms of minced meat per day that the company produced increased to 3 tons in the sixth month of business, and by the end of the fifth year, "Tandem-V" was producing nearly every type of high-end meat product. When people had money and there were few goods on the market, it was between 1993 and 2002.

Everything you produced was purchased right away because we couldn't afford it. At five in the morning when we started working, a line of people was already formed.

Customers would visit the location and make a cash payment right away. Initially, they only came for minced meat; however, as time went on, they began to request that we make sausages and other foods.

As a result, the portfolio was developed by our clients without the use of any marketing techniques. The bottom line is that we started with a very good technologist, with whom we worked for a long time. Despite the fact that we sold 12–15 tons of production per day without any commercial efforts, Kiril Vatev says, "We started with a very good technologist.

The business expanded and dominated the market in Sofia in less than two years, and it now offers 400 different types of meat. As knockoffs proliferate, "Tandem-V" is compelled to brand the product's casings and packaging.

The production of cooked ham then starts under the supervision of a French technologist using a unique recipe that is tailored to the preferences of the Bulgarian customer. Years of deficit and a rising dollar In 1996 due to the extreme lack of meat, the company is forced to purchase live animals. In the village of Drinovo, not far from Popovo, Votevi rented a slaughterhouse, rebuilt it, and later purchased it. He then used it exclusively to work with fresh Bulgarian meat.

This model has evolved over time due to a variety of factors, including the technological process and the fact that different types of meat are required for various sausages in addition to the scarcity of Bulgarian meat. As a result, there is a backlog of meat scraps that cannot be used right away, which results in expenses and frozen money.

As a result of the practice, the business was eventually forced to change its business model, give up its sole supplier—its own slaughterhouse—and let the latter find new clients. Sales increase, and the business becomes steadier as time goes on, but a crisis arises in 1997 when the dollar and the mark jump almost hourly.

As a result, "Tandem" is compelled to seek out unconventional answers for its time. "We started converting the prices to marks and updating them to reflect the current exchange rate.

As a result, even before the establishment of the currency board, Kiril Vatev says, we tied the leva to the mark. The two brothers are actively involved in the production, which does not change the work rhythm.

"On two separate occasions, I enter the workshop in the morning on Saturday and exit the following evening. There is no rest or breaks—just coffee and work.

Then you feel inadequate for two weeks and don't want to repeat the feat, but you have to because time is of the essence," remembers Kiril Vatev. [[img:4440711]] Construction with vicissitudes Nine years have passed since the start of the rental production in Iskra's chair.

"When the plant's director noticed that the consumption of electricity was rising, he immediately increased our rent. We explained to her that we were bound by a contract with a set rent, but she snapped, "Take your contract wherever you want and complain to whomever you want, here I decide.

Kiril Vatev remembers, "In fact, she encouraged us to frantically look for a chance to move the production to our own facility. As a result, the development of our own company, which was not a smooth process, is related to the next phase of the company's history.

"In the beginning, we took a tour of Bulgaria's meat processing facilities. We decided to focus on just one issue: the amount of output required for this business to break even.

In Ruse, we were informed that 600 pigs must be processed every day, and in Vratsa, we were informed that there is no chance the business will be able to generate enough revenue to cover its expenses. We came to the conclusion that, before taking any action, we should consider what others have done abroad, according to Kiril Vatev.

Vatevi got in touch with German architect Josef Falkenstein, who is famous for having over 200 factories built to his designs all over the world. [[img: 4441407]]. The capacity of just one of his factories in Brazil is 1,300 tons per day, which is equivalent to two days' worth of Bulgarian consumption.

He extended an invitation for us to visit factories built to his specifications in Germany, Austria, and Switzerland, which completely altered our perception of how meat is processed. As Kiril Vatev explains, "we then decided that we would either carry out such a venture or not because we did not want an unproductive, unsanitary, and unpromising venture.

In order to get started, Joseph Falkenstein and "Tandem" locate a 13-acre plot of land next to the vegetable market in the "Slatina" neighborhood of the capital. The project is valued at 20 million marks, but when the Vatevi set out to coordinate it in order to obtain a building permit, no Bulgarian institution approves it because it does not adhere to the Bulgarian State Standard (BDS).

"It concerns the years 1997–1998. Because of our distance from the EU and our desire to act in accordance with European standards, this turned out to be wholly unacceptable at the time.

The german designer advised us to locate a Bulgarian team and have them rewrite the project. He also suggested that we do something smaller in scope so as not to alarmed the officials. The conflict with the Bulgarian designers started after we assembled a team of Bulgarians and purchased 4 acres of land in the "Military Ramp" neighborhood, where we are still located.

They had entirely different standards from the ones we were familiar with and did not fit the definition of an enterprise we had already established. In 2000, after a lot of work, we began construction. In 2002, we moved out of the rented space and were no longer subject to the landlady's squabbles.

Kiril Vatev said in his comment. As a result, "Tandem" is developing Bulgaria's first meat processing facility in accordance with European standards, complete with a modern control system for the entire production process, a lab where samples from each batch are examined, and modern equipment.

On the subject of racketeering, Kiril Vatev recalls a time in 1994 when the racket was "clean" – there was a clear demand for payment. Then, in 2001–2002, a group insisted on providing the company with meat from it.

The potential partners' lack of the legally required trading documents led to the proposal being turned down. Private cars were also stolen, but the company resisted. A bus carrying goods was also stolen.

"The racket hasn't disappeared; it's simply become more sophisticated and taken on new forms. I will not give money under the table if pressure is applied in any way.

I don't avoid payment; for instance, local Greek chains declined to buy the goods as soon as they learned that they weren't produced in Greece. Even at that time, it was obvious to us that the older EU members were supporting domestic production because they understood how crucial it is to purchase domestic goods, recalls Kiril Vatev.

The market changed in the years that followed, and international trade chains appeared, forcing the company to restructure its sales. Since "Tandem" organizes its own distribution, purchases buses, hires and trains drivers, and no longer receives customers, the business no longer has any.

The two brothers divided their business in 2005; Todor Vatev took over the slaughterhouse and the then-existing company stores, and Kiril Vatev and his son Damian took over the meat-processing company "Tandem.". The Sofia company acquired a specialized business in Gabrovo three years later that produces traditional Bulgarian goods like lukanka, sujuk, pastrami, "Elena" fillet, etc.

And in 2006, Kiril and Damyan Vatevi set out on a brand-new journey when they established the "Biologica" farm for pasture beef cattle breeding close to the Sevlievo village of Damyanovo. According to Kiril Vatev's analysis today, this concept was innovative for the era in which organic beef was desired.

Its production was found to be extremely expensive, unsuccessful, and with few connoisseurs 17 years ago. We worked very hard to introduce organic meat products, but it is clear that we were unsuccessful because of their high cost, which is high because the raw materials are very expensive.

We made a mistake in our business strategy as well because it is incorrect to raise a mother herd and fatten calves at the same time. These are two different activities in the regular world.

And we wanted to handle everything ourselves, from A to Z," said Kiril Vatev. And the young Vatev even finished a second higher education with a major in "Crop farming" at the Agrarian University in Plovdiv. Currently, "Biologica" is an independent family business managed by Damyan Vatev and cultivates 9,000 decares of land with wheat, corn, sunflower, and rapeseed and 300 decares of orchards dot.

After several years of expansion, the company's sales experienced their first decline in 2010. [[img:4440721]]. "We also survived the global financial crisis because we began to control costs much more precisely as a result of the significant decline in income.

While we have not made any layoffs, Kiril Vatev says that we have reorganized and improved many internal business procedures. New generation and expansion In "Tandem-B," there has been a generational shift over the last few years.

The company has a close relationship with both of Kiril Vatev's children. Since he helped his father make sandwiches when he was ten years old, Damyan Vatev has lived with him.

Then, while continuing his studies in "Business Management" at UNSS, he worked in accounting, production, and placement before taking on the role of marketing manager for the family business at the age of 21. Bogdana Vateva has also been employed "undercover" ever since she started working in the "Packaging" industry at the age of 14 years old.

She works in marketing now that she is an adult and is presenting National Geographic's kids' mini sausages in Bulgaria as part of the company's first action on tour. In the summer of 2018, she earned a degree in "Business, Marketing, and Management" from Brunel University in London. On April 19, 2019, she joined Tandem-B as a managing partner and took over operational management. [[img:4440703]].

Due to the African swine fever outbreak, 2019 will be a challenging year for the industry. According to Bohdana Vateva, "at that time, reports indicated the most abrupt increases in the prices of raw materials ever recorded in the history of the meat processing industry.".

She discovered her gender identity while working her first management position in the meat deboning section. The employees there have been there for a long time and have known her since she was a young child. Work there begins in the morning at 6:30 and lasts until 2:00 in a 7 degree environment.

I believe I stayed there for a sizable amount of time. I didn't get much support from my coworkers, but I put in more hours than they realized.

In order to increase production of the priciest sausages, sausages and fillets, which up until the expansion were only made at the company's plant in Gabrovo, I wanted to go through all the production processes but sadly I couldn't do it, says Kiril Vatev. "However, the Act 16 has not been issued for the object because it has been three years since the municipality of Serdika has prevented us from issuing it.

The issues are beyond our ability to solve because we have completed everything. The municipality cites reasons for the incorrect regulation and the requirement for regulation amendments in order to explain the delay.

Nothing is dependent on us in any way. I am unsure of when or if Act 16 will result in our receiving the same amount of money that we received in advance in the amount of half a million euros, says Kiril Vatev.

The coronavirus pandemic, along with the ensuing regulations and restrictions, have been in effect since March 2020, and their impact is testing the managerial prowess of the young generation taking over the company. [[img:4440707]] Covid and the debut of the young. Everyone was completely unaccustomed to the situation.

In order to prevent production from stopping in the event of infected individuals or contact with infected individuals, my brother and I developed work options, according to managing partner Bogdana Vateva. The workforce is split into two teams that are undetectable by the enterprise ., one for production and the other for administration. Each team works for one week before switching to the other.

Bogdana Vateva encapsulates the experience as "extremely challenging and difficult because we had to work with the same workload, but with half the usual workload.". The model will change once more in the fall of 2020; this time, the teams will be split up over the course of a single day.

According to Bohdana Vateva, "In practice, we set up two mirror productions and lengthened the working day — one team works for eight hours, the other for eight hours.". The year following the pandemic has been advantageous for the business, particularly now that the markets for raw materials have returned to normal.

But in 2022, as a result of the Ukraine conflict and extremely sharp increases in the cost of electricity, raw materials, and materials, all industries are further rocked by turbulence. The final product prices must be adjusted, but despite this, the business manages to survive and even projects revenue growth in the future.

The company's philosophy hasn't changed over the past 30 years: "We only produce products that we would give to our children," says Kiril Vatev emphatically. Examples of mistakes include unsuccessful attempts to establish company stores or to impose another brand in a lower price range. It's a plus that my children eagerly take on everything I've managed to do, up to a point with my brother, then alone, says Kiril Vatev in response to the question of whether being a family business is a plus or a drawback.

The trust and attitude toward the employees are similar to how you would feel about members of your family, which is positive. That is how they are feeling.

Knowing the owners, seeing them frequently, conversing with them, and sharing complaints, boasts, and other information with them is one thing. Another scenario is one in which the owners are managed by managers and have anonymous shareholders.

For the past 30 years, how would you rate the performance of politicians? Kiril Vatev: Weak 2, with a few notable exceptions. If we have accomplished anything during this time, it has been despite the state and not because of it.

Based on comparisons with other former socialist nations, including Bulgaria, this assessment is made. Take a look at where those nations are now. Bogdana Vateva: I would say that I have a very liberal management style.

I have these qualities: patience, tolerance, and attention to detail. When there is a case, I like to talk about it with my coworkers, consider it from as many angles as I can, and gather as many viewpoints as I can in the hopes that the best and most thorough solution will be discovered that won't require one to go back to the same case study.

Quick work is a disgrace to the craftsman, is how I feel about it. I work on the company's strategic plans, but I don't participate in operational management, according to Damyan Vatev.

The three of us regularly get together for a brief period of time to discuss current events and any fresh challenges we may be facing. While planning for the long term has become more challenging recently, there is no such thing as an easy year.

Despite the fact that I consider myself an optimist, all industries are concerned about the longer-term uncertainty and lack of predictability. Kiril Vatev: The company will be prosperous, developed, and well-known on a global scale in 30 years.

Stable, says Damyan Vatev. As meat products, they are considerably more specialized.

Without a doubt, it also reached international markets. Bogdana Vateva: With a very strong team and a very strong internal structure, with a very strong internal team to the point of being autonomous, independent, and it doesn't matter who is in charge.

to protect his family's assets and the values they hold. Important dates in the history of "Tandem-V" include December 8, 1993, when brothers Kiril and Todor Vatevi founded the company "Tandem-V" OOD. In 1996, Vatevi rented a slaughterhouse close to Popovo, rebuilt it, and later purchased it. In May 2002, Vatevi launched "Tandem.".

When there is a case, I like to talk about it with my coworkers, consider it from as many angles as I can, and gather as many viewpoints as I can in the hopes that the best and most thorough solution will be discovered that won't require one to go back to the same case study.