MINI-COMPANY “KALIOPA”

KARLOVO, BULGARIA

COMPANY REPORT
2019/2020

ADVISORS:
LINK TEACHER: NINA GADJEVA
SPASKA BISTRASHKA MARIANA PETROVA
Company report 2019/2020 Mini-company “Kaliopa”

Executive summary
If you see the endless fields in front of you and perceive the fragrance of oil-bearing roses lingering around, you have
probably set foot in heaven, or as we call it here on earth – The Rose Valley. Karlovo is our home and our stage to shine on. The
foundation was laid in 2016 by five ambitious eight-graders determined to bring our valley back to life through reminding each
and every one that what our soil brings to the world is far more valuable than gold.
We have been toiling over our rose fields for three years now. Our efforts have been rewarding and financially viable over
the years, giving us the incentive to keep going. We prove that young people can actively take part in the cultivating and
harvesting of the oil-bearing roses .
Because of the sudden decline in the price of rose petals, we decided to seek out new ways to make the rose in our
products stand out. We started with the traditional rose products – jam, water, oil and handmade soaps. However, the
competition was fierce. We needed something exceptional. And finally, we found it! Our chocolate candy with rose jam filling
quickly caught the eye of the local community and the tourists. We presented it at conferences, exhibitions and festivals.
The open and constructive communication with our clients and the research of trends in the chocolate consumption
patterns challenged us to make our product healthy and balanced so that we could make the best of the market demand. We
put it to the hardest test – the client’s satisfaction. Consumer feedback brought about some changes. We improved the outlook
and the marketing but the radical change was excluding all those unhealthy ingredients from our product – we lowered the
content of sugar by switching to erythrol, removed the lactose and gluten. Our hand-made, locally produced KALIMAZING
chocolates are now a fact and have increased our sales tremendously even in the year of COVID-19!
We use simple but natural ingredients, which quality we can account for! By doing so, we make our sweet temptation
suitable for everyone and anyone who wants or has to change their eating habits for the better. We make the tasty healthy!
The potential underlying the chocolate confectionery production and trade is enormous and this makes us face
numerous challenges but we are more than ready to take them on.

Online version of the report here:

https://issuu.com/mini-companykaliopa/docs/kaliopa-company-report-
2020_a78de62fa6e276?fbclid=IwAR0P6leoZcvhtqBmnAO1CqhQFwBUj3aQ1h4gJUE-YR5zG4hT7OubTydC5Pk
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Company report 2019/2020 Mini-company “Kaliopa”

1. Analysis of Overall Business Performance and Profitability

BALANCE SHEET / STATEMENT OF FINANCIAL POSITION
Prepared according to the requirements of Bulgarian legislation PROFIT AND LOSS ACCOUNT / INCOME STATEMENT
Prepared according to the requirements of Bulgarian legislation
Mini-company Kaliopa

from Vasil Levski High School Karlovo, Bulgaria Mini-company Kaliopa

Amount in BGN from Vasil Levski High School Karlovo, Bulgaria
ASSETS
Amount in BGN
SECTIONS, GROUPS up to up to
31.I.2020 31.V.2020 NAME OF EXPENSE up to up to
A. Fixed assets 31.I.2020 31.V.2020
І. Tangible assets 2400 2433,20 А. Costs
Industrial equipment 33,20 1.Raw materials 11,30 106,27
Rose fields 2400 2400
2. External services 205,30 519
ІІ. Intangible assets 0 0
Trademark 3. Compensation costs 16 32
Software 4. Depreciation - 10,30
Total for section A: 2400 2433,20 5. Exceptional costs - -
B. Current (short-term) assets Total costs (1+2+3+4+5) 232,60 BGN 667,57 BGN
І. Materials stocks 0 92
Materials 0 40
NAME OF INCOME
Production 0 52
Goods Б. Profits
II. Receivables from customers 1. Net sales, incl.: 87,40 2227,10
ІII. Financial assets 44,80 1674,33
1.1. Production 87,40 2227,10
Total for section B: 44,80 1766,33
SUM OF ASSETS (A + B) 2444,80 BGN 4199,53 BGN 1.2. Goods - -
1.3. Services - -
LIABILITIES
2. Profits from financing 20 70
SECTIONS, GROUPS Total income ( 1+2) 107,40 BGN 2297,10 BGN
А. Equity
І.Basic capital 170 170 Financial result (profit/loss) -125,20 BGN 1629,53 BGN
ІІ. Current profit / loss -125,20 1629,53
Total for section A: 44,80 1799,53
The great difference between the first and second quarter of the
Б. Obligations
І. Loan commitments year is due to the rose-picking period and the huge amount of products
ІI. Liabilities to staff manufactured throughout May. The income of the company for this
ІII. Obligations to suppliers
Total for section B: 0 0
year is BGN 1629, 53 /the expectations being around BGN 1500/.
Despite the lack of festivals and guests to our town due to the
C. Financing 2400 2400
COVID -19 pandemic, the profits this year are more than the expected.
SUM OF LIABILITIES (A + B + C) 2444,80 BGN 4199,53 BGN “Kaliopa” is using this time actively to present a new beginning. Being
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Company report 2019/2020 Mini-company “Kaliopa”

able to promote the new candy better and putting it up online, we keep the interest going and are about to insure more income.
 “Kaliopa” candy (the one with sugar) keeps its customers company, in that way bringing the expected profit.
 The results from a questionnaire show a considerable interest towards KALIMAZING chocolates. The income from them
lives up to our expectations.
 The ability to finance our future plans for growth gives us independence.

2. Company Overview
2.1. History
More than seven years ago, when at school another mini – company was active, we tried, but we were only in the fifth
grade. In 2016, we found the perfect opportunity – we created “Kaliopa” and became part of the big family of JA Bulgaria. Then,
we made dolls dressed up in traditional Bulgarian clothes.
In 2017, we found ourselves in the rose gardens! We possess 4 decares of oil-bearing roses. We dig, prune and spend every
early morning in the rose gardens. The transmission of the oil-bearing rose is profitable, but it does not distinguish us from the
others. We distilled rose water, made rose jam and soaps. However, we never stopped looking for something new - that’s how
the idea for chocolates filled with rose jam was born. The first test was at the end of 2018, during a conference at the University
of Forestry, where our chocolates were one of the most attractive and sought after products. We participated in a number of
school and outdoor bazaars, JA’s Regional and National competitions – emotions which inspired us greatly!
In 2019, we presented them to the President of the Republic of Bulgaria and - we won second place at the National
Competition of JA “Rising Stars”. This year we won the special prize of the media jury and finally, we are now the best student
company of Bulgaria for the year 2020.
2.2. Origin of the conception
After a year on the market of chocolates in Bulgaria, we came to the conclusion that the production and trade with
chocolate products has great potential, but it is also connected with a number of challenges.
In condition of hyper competition, the consumer is an exceptional factor for success. We tried to understand the
consumers’ view in order to optimally guide the market search of our chocolates. By researching and analysing the consumers’
preferences, we identified two main trends:
 Demand for chocolate products with a higher cocoa content.
 Interest in so-called Health & Wellness, i.e. the demand for chocolate products with reduced sugar content,
without artificial sweeteners and without palm oil.
We had to make our product healthier, put it to the toughest test – the approval of the consumer, change the vision and
marketing. We reduced the content of harmful sugars, replacing them with erythrol, we removed lactose and gluten. In order to
offer a finished product, we had to think about packaging. Already packaged, we can offer them online.

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Company report 2019/2020 Mini-company “Kaliopa”

2.3. Current status, strategy and goals

Today, we strive to meet market challenges successfully through a clear vision of consumers’ needs and maintain high
standards. We are trying to satisfy customers with traditional and those with unusual and healthy preferences.
Our mission is to make «the food of the gods» with a message from The Rose Valley available for every person, to spread
optimism, to create value and to make the world a better place.
Our vision is to be one step ahead of the rest, to give customers the opportunity to make informed choices and to receive
the best product.
Our goal is to increase our market share through fair competition, constant innovations and development of the product
programme.
2.4. Problem we offer a solution to
The analysis of the chocolate market and the data from our own studies show that the modern consumer is looking for
extraordinary but high quality and balanced products. There are people who, for one reason or another, limit their sugar,
lactose and gluten intake. We believe that they, just like us, deserve the joy that our chocolates bring. We are focused on
solving this problem - each of our clients to enjoy the “food of the gods”, combined with the heritage of the Valley. We should
not believe that healthy and enjoyable are two incompatible concepts. We also need to change the perception which the media
often imposes on everyone that higher price guarantees quality and healthy content. As for KALIMAZING chocolates, the delight
is irresistible, and the quality - guaranteed.

3. Products
3.1. Description and characteristics of the products
3.1.1. Handmade chocolates with filling:
3.1.1.1. KALIMAZING chocolates are made of high-class natural chocolate, “Casa
Kakau’’ with rose water, rose jam (with no sugar) and almond filling. Important ingredient is
the sweetener erythrol, which has a low glycemic index and 0
kcal. The candy is also a vegan product due to the lack of
lactose. The chocolates have a great fresh taste (thanks to the
rose and the erythrol), aroma of rose water and shining due to the tempering. KALIMAZING
chocolates are handmade in a rose shape. They are the live example of the simple beauty of the
detail.
3.1.1.2. The chocolates ’’Kaliopa’’ are made of high-class fine dark chocolate and
homemade rose jam. The interesting combination grabbed the attention the first time it was
introduced at the end of 2018, but the current method of production is different due to following
heat treatment of the chocolate. The main indicators for the quality of the chocolates are:

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Company report 2019/2020 Mini-company “Kaliopa”

composition (concentration of cocoa), taste, aroma, colour, hardness, protection by means of reliable packaging from adverse
external factors.
3.1.2. Two types of rose jam, prepared by us following and old recipe from our
grandmothers. This year, in addition to the traditional rose jam, we added a new one without
any sugar - the substitute is erythrol. It gives the final product unusual freshness. It is
available in different jar sizes, suitable for direct consumption and giving it as a present.
3.2. Pricing strategy and current stage of development
Bearing in mind the effort and resources we put into growing our roses, it is clear that this
is the first factor in the process of pricing the final product. Here we must emphasize that by
investing the rose in the products, we get a much better profit in the long run than directly
reselling the roses.
The reason that gives the candies such importance is that they are handmade. We do not
intend to automize the production, as we would lose one of the main advantages. Manual labor is a major pricing factor.
The costs for raw materials and consumables required for 1 candy is BGN 0.53 (for comparison-last year’s cost BGN 0.19).
The difference comes from the fact that quality ingredients and especially those labeled "healthy" are at a higher price. The
price for one candy /BGN 1.20/ was determined after consultation with professionals. The costs of packaging, scrap and
depreciation of the equipment are also included. Research shows that customers are increasingly looking for high-class
chocolate products with certain features for which they are willing to pay a higher price. The ultimate goal for our product is
not only to give everyone the opportunity to eat better, but also to taste the real chocolate as we know and love it. The
uniqueness of this boutique product makes it a precious gift suitable for a variety of occasions.

4. Operations
4.1. Operational activities
These include growing roses, making rose jam, developing recipes and new products, establishing key partnerships with
chocolate suppliers, selecting and supplying raw materials, chocolate production, production control, marketing, trade and
distribution. Here we do not want to take a closer look at growing roses and rose picking. However, we are very proud of and we
can present it properly. We prepare rose jam according to an old recipe, a novelty in it is that we now have sugar-free one.
4.2. Main stages of the production process
1. PREPARATION OF RAW MATERIALS:
- melting the chocolate;
- preparation of chocolate ganache with almond cream;
- tempering - one of the most important factors in obtaining the perfect candy. A novelty for us, with which we improve the
technological process under the expert guidance of the chocolatier Pavel Pavlov.

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Company report 2019/2020 Mini-company “Kaliopa”

We melt the chocolate on water bath to 50°C, after that pour it on a marble fence to cool down to 18°C, return to the pan
and heat again to 31°C. When melted, the crystal lattice of the cocoa butter breaks down and the chocolate becomes unstable.
By adding fresh crystals, we allow them to melt slowly and evenly, thus, they "infect" the already decayed ones, helping them to
rebuild their structure. Why do we go through this process? When tempering, we raise the melting temperature of the chocolate
so that it does not stay on the fingers and does not spill. Моreover, it does help prevent white spots (grease) from appearing on
the surface, for faster tightening, gives shine and crunchiness.
2. FORMING – we pour the already tempered chocolate in polycarbonate molds, add the rose jam and ganache. These
shapes help to obtain a smooth surface of the chocolates (unlike the silicone ones we used earlier) and their easy removal from
the nests.
3. PACKAGING - finding suppliers of boxes for our chocolates proved really difficult. And yet we have a solution.
All operations are hand-made, which is characterized by low productivity, higher costs for compliance with the
technological process and sanitary, and hygienic requirements and, therefore, higher cost of products.
We produced jam and chocolates in ”Pateva Maaza” confectionery, Karlovo. The state of emergency demanded moving the
process at home. We guarantee hygiene standards. After our active advertising campaign, we received a proposal to move the
production process in a workshop, which greatly facilitates the production.

5. Market and marketing strategy

5.1 Description of the market
The chocolate market is rapidly developing not only in connection with different types and brands, but also in the context
of the new global trends in eating habits. When it comes to territorial borders, the market on which we sell our production is
local but we are expanding its scope to national and international level.
5.1.1 Internal market
A range of different producers - from the branches of multinational and international companies to the small local
factories and family businesses release a production on the Bulgarian market.
The first to try our products are our relatives, classmates and teachers. We continue our cooperation with the
Municipality of Karlovo and we are pleased to announce that we are in charge of preparing products for specific occasions. We
are glad that our clients are guests from all over the county, especially on exhibitions in the country, the Rose and Lavender
Fest in our town. The variety of dietary products is increasing but at this stage it is still not big. The Bulgarian products are
more affordable but not so well-known. We would like to take advantage of this market gap.
5.1.2 External market
The ambition to present ourselves on the external market can be based on the fact that KALIMAZING have already been
appreciated by a lot of tourists from China, Japan, the Netherlands, France and other countries. This is a good opportunity to

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make our product more popular on the international market. We gave our chocolates an English name in order to be more well-
known to the potential consumers out of the country.
5.1.3 Challenges
Under the conditions of a global pandemic we need to be flexible and to look for adequate solutions. We are faced with
difficulties, connected with the supply of our products and raw materials. We need to be more careful with production and
cautious in the clients’ search. Our chocolates are not part of the basic food’s category. They are made with the intention to
stand out and bring pleasure. The rose picking had finished and now our efforts are put into the direction of improving the final
product so as to satisfy our perfectionism. The situation is very dynamic but we overcome every obstacle, having in mind the
changeable conditions. Although the online offering of chocolates has its problems /small batches, expensive delivery services,
the melting of the chocolate/, we have made the decision to make use of online sales.
5.1.4 Our main target groups are:
 people who have to eat healthy
 people who have made their own decision to cut out sugar, lactose, gluten
 experimenters
 connoisseurs
The profile of the perfect client (according to our marketing research) - a woman aged 24-45 with an income of BGN
701-1200 who leads healthy lifestyle. The main factor for her choice is the quality and she is willing to pay a higher price for a
healthier product. She does not limit herself within the well-known and seek something far from different.
5.2 Analysis of the competition
The trade with chocolates is accompanied by a serious competition, in which we do not have fear to participate. The oil-
bearing rose and its products /rose oil, water and leaves/ are entering the food industry and the chocolate production. Part of
the factories with a good presence on the market are:
 “Rim Group Co” - three types of chocolate “Rosey’s mark” /innovation that was patented in 2017/
 “Bio Benjamin” - chocolate with rose oil, suitable for people who play sports and for those who want to have energy
 Casa Kakau - artisanal chocolate with rose water. The Ilievi family are not only our chocolate suppliers, but they have
also dedicated a great amount of time and shared precious experience with us.
 Candies, but not chocolate by the Candy factory ALPI – candies DEO-rose /with and without sugar/ with an aroma
effect. They are defined to be a nutricosmetic product.
5.3 Identifying the needs and the marketing strategy
In order to reach our customers, we organise sales in school, take part in exhibitions, celebrations within the town and
the region, we use face-to-face meetings, personal contacts, brochures. Our research shows that we are able to grab the
attention only with a presence. We rely on our charm! And out of a sudden-COVID19! We were not able to have direct sales,
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Company report 2019/2020 Mini-company “Kaliopa”

there were no events and exhibitions. Even under the condition of a global pandemic, we have goals - to increase our market
share by using the advantages of modern technologies. Based on the research, our target group consists of mainly young
people - up to 35 years. That is why we put an emphasis on our social media, as during the quarantine young people spend
most of their time online and within social media platforms.
In this exact moment we have not identified a competitor of our chocolates with rose jam. We need to research deeper
within the market gap because the rose is developing and becoming more vital in the chocolate production.
The chocolates of “Kaliopa” carry a message and guarantee amazing experiences. Therefore, our product will give everyone the
opportunity to taste high-class chocolate and the magical flower of the Rose valley.
5.4 Market acceptance and market opportunities, extraordinary feature
We would like to argue that we are different because we are the first ones to discover, try and release the unique
combination between dark chocolate and rose jam in the shape of a candy! In an interview Pavel Pavlov - one of the best
chocolatiers in the world talks about such chocolates but we know from him that he has not made the same ones. He is the
person who this year gives us the main directions for the work with chocolate and the preparation of chocolates.
We use high-class products and this year we can brag about our selection of non-gluten, prepared with sweetener,
chocolates. We generate original ideas for shape, colour, taste and packaging of the products, connected with various
celebrations! We pay huge attention to detail and we can never offer our client a product, which we are not satisfied with.
Otherwise it would be a compromise but we do not make compromises with the quality!

6. Sales and promotions

6.1. Promotional activities
We make discounts on purchases over BGN 50.00 and for follow-up purchases at different exhibitions in order to make
them more affordable, so more people get acquainted with our activities as a student company and place orders.
The sale of a larger box of candies is at a better price /9 pcs. – BGN 12.00/ and the smaller ones /3 pcs. – BGN 5.00/ do
not go unnoticed due to their attractive packaging.
6.2. Marketing activities
In terms of marketing strategy, we rely mainly on social networks. We use our social media profiles and have created a
website. The company has taken part in numerous TV and radio interviews. In this way, we can reach a larger audience and
representatives of different age groups. This in turn provides better profits.
We stimulate the purchases of more than one box of chocolates through collectors’ packages with images of the five
houses which are part of the Architectural Complex “Ancient Karlovo”. The customer will not only collect all the houses - we
will guide him around the complex or help him organise his trip.
6.3. Sales strategy
In terms of making more sales, we were able to define our sales strategy:

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 Retaining our old customers and attracting new ones, expanding the territorial scope of the market;
 Highlighting the specific advantages of our products and providing unforgettable experience before, during and after the
purchase;
 Encouraging customers to buy more often – example: the game – “Collect the 5 houses, get to know Karlovo”;
 We are using digital marketing to attract more users and it’s completely free.

7. Management
7.1. Who are they?
The people who believed in us! Together with them we created a magical taste and beauty!

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7.2. Who are we? 8. Future Potential of the Mini-

company
“Kaliopa” will seize every opportunity in order
to master its business. We see a potential and
expect results from developing new products in
the company portfolio. We are in need of more
skills in the sphere of working with chocolate. Our
meetings with world – famous specialists have
given the expected outcome. Now we are in search
of long-lasting partnerships, offers, investors.
The company is introducing new eco
packages, as well – it is our policy to protect and
preserve our planet.
KALIMAZING are already known beyond the
borders of our own country. The name in English
requires us to be ready for world-wide shipping.
Thanks to the chance of taking part in the
European competition, we expect further interest
from abroad.
The next step is to equip a place which we
will finally be able to call our workshop. That way
The Bulgarian Food Safety Agency would provide
us with a certificate for quality of our products
which would give us the ability to say that we do care about the health and wellness of our customers.
Although the situation with the COVID-19 is dynamic, the future of the mini-company is bright – our enthusiasm and
hard work will help us to overcome the difficulties throughout this period and, moreover, to develop skills to cope up with
future unstable periods.
JA Bulgaria has shown us that we are capable enough to consider turning our passion into a real business one day. Be
ready for “Kaliopa” and our magical KALIMAZING chocolates – a taste to last, a name to remember.

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