Cocoberry experiments with new products, retail formats

Tags: News

Firm to try luck with institutional sales, new pricing policy

Frozen yogurt chain Cocoberry is looking at different product formats and channels of retail to increase awareness and reach of the nascent category.

As a category when frozen yogurt was introduced in the Indian market, all the players, including Cocoberry, had adopted the format of serving the freshly vended product at the exclusive outlets. This perhaps limited the awareness and the reach of the category. As many of the frozen yogurt chains are closing down their outlets, Cocoberry, the largest in terms of outlet-size, is devising ways to reach out to a larger number of customers.

“We are in the process of introducing a long-shelf life product. The takeaway product will be first retailed through our own outlets. Later we plan to distribute it through the departmental stores and restaurants which have the necessary cold chain infrastructure for frozen desserts,” said Rahul Deans, CEO, Cocoberry.

Cocoberry is trying to experiment with pricing too as the product is currently positioned in the premium category. “The product as it is served in the outlets cannot be positioned in the mass market. But we have introduced a ‘tiny cup’, which is priced Rs 25. Earlier, the entry-level price was Rs 39. The new price would probably attract those who want to try the product for the first time,” said Deans.

Cocoberry is also trying its luck with institutional sales. The chain has been vending and serving fresh frozen yogurt at a few weddings in Mumbai and Delhi.

“People have become health-conscious and opt for healthier alternatives even at weddings and festivals. Frozen yogurt is one such dessert that allows you to indulge a little without guilt. Frozen yogurt typically has just a third of the calories of ice cream and is almost fat free,” he said.

The company had earlier closed down a few loss-making stores and has brought in necessary changes to make the existing 25 stores profitable. “From being 100 per cent import-dependent, we plan to get all our machines and raw materials sourced locally over a period of time. This initiative has helped us contain the cost escalation due to rupee depreciation and food inflation and retain the pricing,” said Deans.

The company has also started expanding its network of exclusive outlets beyond the metros to tier II cities.

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