Indulge- Party-Delight, in foods that are better choices.
Company History
SHAW HOLDINGS, LLC
Executive Summary
Market niche
Unique product line. Currently most green tea ice cream products are offered in specialty ice cream shoppies and in limited locations, as premium ice cream. A brand label that is distributed nationally that is a green tea ice cream product would sell according to market demands for healthier ice creams and frozen yogurts. National recognition of the benefits of green tea has already been a success in health food stores, grocery stores, diet product lines and traditional cultural recognition that also can be marketed as a global product. Successful venture capital investments by already existing premium product lines would be an area of appeal to most investors and existing companies of premium ice cream product labels.
Benefits of Matcha/Zen Ice Cream/YogurtCoffee/Bakery/Donut, Food & Beverage, Hot Products, Packaging Trends, Trends / Statistics9/7/10slow restaurant numbers. According to Mintel Global Market Navigator, the combined value of ice cream retailers in the top five European markets - France, Germany, Italy, Spain and the United Kingdom - is up to $4.6 billion from $4.1 billion in 2008.dismal performance.
Global market
Healthwise
Health craze
Energizing antioxidant
Low fat diets
Low cholesterol
No age bracket restrictions (young college students to older age groups)
Frozen Food
In House Ad Promotion/Propaganda
Distributor Marketing Through Venue Channels
Internet Advertising/Social Networking Blogs/Sites
Container/Recycling Advertisment
Health Food Shoppies/Supplier Ads
Link up with a major brand, co-branding
Go green or “greener policies”
Brand familiarity
Brand association
Benefits would be low inventory costs or reduction in inventory costs through association with major brand/label
Major brand identity, distribution and sponsorship, investors, exposure or advertising
Major brand specialty lines/diet lines
Health food stores
Quick Service Restaurants
Market to:
Health conscious
Green tea/tea drinkers
Health clubs
Dieters
Low calorie diets
Natural food buyers
Vegans
Product pitch
Product description:
Product name/label
Label includes history of ancient Zen (product knowledge association and associated import history)
Market Forecast (pie graph)
Ice cream sales have an annual sales market of about 7 million with a demand for healthier ice creams, the sales market that sets the price has a demand for the product which guarantees a return on the investment of an independent product label or an new product line from a well known company and product by brand identity, brand association and quality management already in place.
There are no geographic barriers for ice cream products. There are no cultural barriers for Matcha, Zen or Green Tea products. The combination of the an ice cream or frozen yogurt, a traditional favorite for kids and adults, and green tea, a product that has had cultural progression western successfully, has already made its way into recipes of the premium ice cream shoppies and homes global without an existing global product line. There exists knowledge of the benefits but not existing product label that carries Zen ice cream nationally which again is in market demand. Corporate success of coffee, mocha, cappuccino, expresso ice cream products has already proven success with Starbucks and other premium ice cream lines. Coffee and teas are staples in global diets and coffee has already shown a success in the market with its quick energy or diet demands aside from great tasting premium coffees on the go. Green tea is also an “on the go product” in fast, trendy, and high pace metropolitan areas, breakfast cafes, coffee houses and restaurants.
Presently the Quick Service Restaurants are offering coffee on the go and beginning to introduce tea and other healthier beverages, smoothies including already existing quality brand names with the success of brand identity association. A well known recipe, a healthy product, a quick, on the go snack for adults and kids, trendy globally would be a successful investment.
Market Research/Market Trends/Sales potential
The first point to highlight is the emergence of new brands in recent years. Eight of the 18 franchises in our sample had started to offer franchises in the last four years. This suggests that there are more ice cream franchises to answer the increasing demand for variety.
The success rate is based on the number of openings and closures over a one-year period. In our sample, 33% (6) of the franchise systems had a significant growth rate. These companies were new to the franchising concept (franchising for less than four years) while four were more mature concepts, established for over 15 years. There were only 22% (4) systems in decline. The other franchise systems in our sample had a stable growth rate.Adapting to a Changing Market – Trends The frozen yogurt crazeGreen practice
Co-branding Co-branding is a strategy used to stimulate the growth of two franchise systems. The brands involved mutually benefit from the combination of their resources. Earlier in 2009, Coldstone Creamery and Tim Horton's tested about 50 locations of co-branded stores in the expectation that the evening traffic through Coldstone Creamery and the daytime traffic through Tim Horton's would stimulate further growth for both concepts2. The test locations have proven to be a success and the companies are expanding the co-branding system to more stores. This is a good way of increasing sales and traffic in a franchise location. Despite the high investment involved, it can deliver large returns if done correctly.Outlook singing hostess, child activities and larger seating areas. Combining ice cream and entertainment increases the length of the visit and positively alters the customer experience.
The franchise systems in the ice cream industry are expanding, with some of the major players launching new express concepts that are more aggressive in their implantation strategies. The appearance of new franchise concepts in the frozen dessert industry is a response to the increasing demand for value and variety, and the return of health trends like frozen yogurt. This is a period of great opportunity in the ice cream industry. Real estate prices have fallen significantly over the past two years, making prime retail locations more available and affordable.
The ice cream franchise industry is not short of challenges but when there is demand you will find growth. Historically, tougher economic conditions have proved favourable for ice cream stores. The ice cream industry, if not recession proof, seems to be recession resistant!1Maze, Jonathan, “The Second Yogurt War”, Franchise Times, June-July 2009, p. 27, 29.
2“Cold Stone expends co-branding with Tim Hortons”. Ice Cream Reporter v22 i3 pl(2), 20/02/2009
Also, the U.S. ice cream market is expected to reach $6.8 million this year. It has rebounded strongly from last year's
Mintel's research concluded that premium lines account for 9 percent of international product launches in the past six months.
Manufacturers have also responded to an increased demand for healthier products, with 13 percent of all launches featuring no additives or preservatives.
Additionally, packaging trends have gravitated toward more eco-friendly or recyclable materials. In the past six months, 13 percent of ice cream products featured an environmentally-friendly packaging label, a 6 percent increase from the previous period.
Germans are the biggest ice cream consumers, with residents spending $19 per person each year. Europeans collectively favor chocolate flavors the most. In the U.S., vanilla is the flavor of choice, with chocolate second.
“The strongest ‘healthier’ trend in ice cream has been the removal of additives and preservatives, rather than the limiting of fat, sugar or calories,” said Ana Lourenco, Global Market Navigator analyst at Mintel. “There’s definitely an opportunity for more on-trend superfruit or antioxidant-rich formulations to help make ice cream appear better for you.”Ice cream sales, trends are hotTags:
By positioning the industry in the market as an affordable treat, and by adapting their outlets for family activity and entertainment, ice cream franchises have managed to boost sales. Many franchises have adapted their concept to create a family friendly ambience by introducing entertainment features, such as a
Many industries are striving for greener policies these days and in doing so hope to boost their public image. Surprisingly, the environmentally friendly trend has not yet penetrated the ice cream franchise industry. The main name that comes to mind when thinking socially active policies is the Ben & Jerry’s franchise. They are “activists”, not only buying Fair Trade, using sustainable products and changing their method of production, but are also donating the profits of certain flavors of ice creams to worthwhile causes. For example a portion of the proceeds for Phish Food ice cream goes toward environmental efforts in Vermont’s Lake Champlain Watershed. This could be a growing trend, especially when combined with the popularity of frozen yogurt, the customers for which might be more sensitive to these issues.
The health trend that had reached its peak in the mid ‘80s has returned. Tart frozen yogurts have made a major come back, with many frozen yogurt franchises appearing on the frozen treat market. The original product has had a make-over, with a focus now on the healthier aspects of the dessert. These include lower levels of fat, pro-biotic properties and “healthy toppings” like fresh fruits and cereals. New, fashionable flavors are now available, like green tea. This guilt-free snack is gaining in popularity. Yocream, a Portland-based frozen yogurt producer, has announced a 175% increase in its sales over a 12-month period. Some are afraid that this trend will fade like it did in the mid ‘90s but the movement, endorsed by Hollywood stars like Ellen DeGeneres and the Jonas Brothers and is thriving1. Frozen yogurt franchise systems are growing quickly. One, Céfiore, plans to open 50 units nationwide in 2009.
Ice cream franchises are constantly changing in response to changing trends and customer preferences.
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