The Star Brands Group, known for snack brands Flint, Chipster’s, and BigBob, has operated in the Central Asian market for 20 years, establishing four production facilities in Kazakhstan and preparing to expand into Uzbekistan, as to Yevgen Razuvayev, Star Brands Director of Strategic Marketing, speaking at the Forbes Ukraina Exporters Summit.
Razuvayev explained that the company initially faced notable logistical challenges when entering Kazakhstan in 2006.
“We couldn’t find a single logistics company or distributor capable of ensuring a nationwide presence in a country that stretches over 3,000 kilometers from east to west. So we became our own first national distributor: our ‘rapid response team’ of 13 people went there and learned about the new culture and customs right on the ground,” he said.
The company’s strategic decisions were also influenced by geopolitical developments. Star Brands exited the Russian market between 2014 and 2016 due to logistical difficulties.
“We realized we wouldn’t be able to ensure normal logistics from Ukraine to Central Asia, since the main route—the railway—ran through the territory of the aggressor country… Transit became impossible without a critical increase in the product’s price,” Razuvayev noted.
The logistical challenges prompted Star Brands to establish its own production facilities directly in Kazakhstan. Currently, four sites operate there, producing crackers and potato chips, allowing the company to maintain a competitive cost of goods sold in the region.
“Logistics matters more for our product than it does for metallurgy. When we sell chips, we’re essentially ‘transporting air.’ That’s why logistics costs are extremely important in our production costs,” Razuvayev said.
Razuvayev also encouraged Ukrainian exporters to consider markets in Eastern countries, particularly Uzbekistan.
“Uzbekistan is a country undergoing remarkable changes. From a completely closed-off territory, it is transforming into a market with enormous potential. For us, it serves as a springboard for further development in Eastern countries. Look to the East—that’s the real Asia, where there are countless opportunities,” he stated.
Founded in 1995 in Dnipro, Star Brands Group operates as a vertically integrated international trading and manufacturing holding with 33 production sites. Its operations include a distribution company, Concept, representing over 50 international brands, its own logistics company, Logistic American, and the Star Brands Asia division, which focuses on business development in Central Asia.
