Advice for ice cream entrepreneurs

“Ice cream is such fun!;” “It’s got to be easy!;” or “I’d love to take grandma’s secret recipe to market!” “Just tell us how to do it!” It seems simple to be an ice cream entrepreneur, but that's not necessarily the case.

Here is some guidance in no specific order of importance:

Be mindful of what you are asking: Taking a “recipe” from kitchen to dip , to retail is a big deal with many technical and non-technical considerations; detailed and not-so-detailed.

Do what the “big boys” do: Big brands know (or should know!) that eventually, an entrepreneur will need to communicate the very same product parameters/declarables to consumers and buyers, onsite staff of their own at back-of-store dip shop operations and/or any copacker(s) at industrial scale manufacturing sites. This includes where the product would be made; how the product would be made, stored, and distributed (remember, ice cream is not a frozen food and has its own distribution supply chain); and, where and to whom it would be sold and at what price point?

Steven Young, Ph.D., is principal, Steven Young Worldwide; Bill Sipple is principal, Wm Sipple Global Services.

Mother nature rules: Wishing to make ice cream is insufficient. Mother Nature has rules (chemistry, physics, microbiology, etc.) that govern composition, manufacturing, food safety and quality that define finished eating quality. People plan and Mother Nature laughs!

Begin at the end: What do you want/need to declare about the finished frozen dessert? This includes:

1. How will the new product be distinguished from products already, or potentially, offered for sale at the same point(s) of sale?
2. What do you wish to declare on packaging versus what might appear in promotionals/advertising? Regulatory constraints?
3. Market positioning statement? What is the product? What are product attributes (features, facts) with associated benefits (reasons to buy?) The more “reasons-to-buy,” the stronger the market positioning.

Do a quick SWOT analysis. What are the strengths, weaknesses, opportunities and threats to the business?

• Will the product be standardized or not; dairy-based or not; hybrid or not?
• How many and what flavors are to be presented for sale?
• Form and format? Packaged (multi-serve containers?) versus novelties (e.g., molded, filled, extruded)? Industrial capabilities? Industrial capacities?

Go shopping; don’t wait

Don’t wait for scanner data, miscellaneous market reports, etc. Entrepreneurs need only go to their local supermarket (think big multi-unit markers!). Go to the frozen dessert section. Note space limitations including store brand presence. Count doors, rows, stock keeping units (SKUs). Understand what sells what doesn’t. Return often to keep eye on any changes at point(s) of sale. What is being sold? What is declared by the competitive set? During development, return often to ensure your market positioning, uniqueness, and other assumptions remain viable.

Treat retail/dip shop space as valuable real estate

Ice cream and related frozen desserts are special as the only foods designed, formulated, manufactured, marketed, and sold with the expressed purpose of being consumed frozen. You can sell a frozen pizza under ice cream distribution conditions but not vice versa. Thus, the frozen dessert shopping space is limited and valuable real estate. This applies to dip shops, as well. When doing costing remember slotting allowance demands by retailers. Determine the cost of doing business.

Do the math

Once product positioning is finalized, consider mix composition and mix analytics. This is, amount/type of fat and protein in the mix; ability to take and hold air, source(s)/amount/quality of sweetness; total solids, mix and ice cream densities, water control capabilities, texture stability (resistance to heat shock), hardness (ability to scoop at serving temperature(s)); amount of water as ice at exit temperatures during whipping/freezing; to list a few critical elements.

Estimate point-of-sale pricing often; stay on track; make sure any assumptions made remain good. Margins are “razor thin,” but margins to defined profit centers such as research and development, management, office staff, operations, distribution, marketing/sales, and selling expenses add-up.

Confirm the math

Keep an eye on the math, including changes in climate, availability, capabilities and capacities. Lab/pilot scale is OK for flavor development but only under plant conditions are influences of mix making and processing (pasteurization, homogenization, mix aging, whipping/freezing, flow behavior, influences on body/texture and such) revealed. Get ready for big minimum volumes and resulting cost to verify. The good news: small units (novelties) have greater return-on-invested capital, but novelties also have higher costs in development, testing, and manufacturing. Expect losses along the way.

Confirm the declarables

Are declarables real, achievable, defined by law, and/or able to be supported?

Confirm desirable sensory properties

Understand the influences of appearance, aroma, acidity, taste (sweet, salty, bitter, sour, unami, “fatty”), texture (smooth/creamy vs coarse/icy) and temperature on perception of any flavor. Know how this works specifically with compositions desired.

Doing things right takes time

Any rush to judgement will take up more time and misdirect focus. The same is true for testing multiple mix options. Patience and focus prevail. However, the latter can be expensive if not managed properly.

Being right early makes sense (cents!)

It’s hard to get things “right” the first time, but minimizing repetition keeps development costs manageable. Use those mix analytics to help focus and make correct decisions earlier.

You got to want to do it

You need to have your heart, enthusiasm, perseverance and love for development. Patience pays but only if committed.

Nothing gets done in a vacuum

Define what “success” means; be as analytical and demanding as possible. Expect the unexpected!

Keep your eyes on the prize

Good luck! You’re not alone nor are you the first. Many have succeeded; there is room to be entrepreneurial. In a pinch, we’re here to help! DF